IBM and the Ponemon Institute recently released their annual Cost of a Data Breach report and found, not surprisingly, that the frequency and cost of data breaches continue to rise.

The survey was performed over a 12-month period and included feedback from more than 470 companies worldwide. Here are some interesting numbers to note:

  • The average cost of a data breach was $3.86 million
  • The average cost of a lost or stolen record was $148
  • The likelihood of a recurring material breach over the next two years is nearly 28 percent
  • The average time to detect a breach was 197 days
  • The average time to contain a breach was 69 days

The implementation and use of basic security protocols cannot prevent a breach, but they can certainly reduce the cost.

  • The average cost savings for companies with an incident response team was $14 per record
  • The average cost of a breach for companies that have fully deployed security automation was $2.88 million
  • The average cost without automation was $4.43 million, or a difference of $1.55 million
  • Companies that contained a breach in less than 30 days saved on average $1 million

While no organization is immune to cyber criminals, performing proper due diligence can go a long way in minimizing your risk and impact. For additional questions associated with risk mitigation, please feel free to reach out to Charlie Wood at The Bonadio Group.

Source: http://newsroom.ibm.com/2018-07-11-IBM-Study-Hidden-Costs-of-Data-Breaches-Increase-Expenses-for-Businesses

Charlie Wood is an executive vice president in the firm's Enterprise Risk Management Division based out of our Rochester, NY office.

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