Survey: 65% of Businesses Expect to Suffer an Information Security Breach
A new report by NTT Com Security found that organizations expect costs associated with a data breach would include legal fees, compensation to customers, third party resources and fines or compliance costs.
A new value-at-risk report by NTT Com Security found that a majority of surveyed business decision makers expect to suffer severe monetary and reputational consequences from an information security breach.
BLOOMFIELD, Conn. – NTT Com Security, a global information security and risk management organization, has issued a new value-at-risk research report highlighting the critical need for organizations to protect their data.
The report shows that 65% of business decision makers surveyed expect to suffer an information security breach at an average cost of almost $1 million dollars and a recovery time of two months.
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“This report makes it clearer than ever how critically important it is for organizations to implement a comprehensive solution to protect their data,” says Christopher Camejo, director of threat and vulnerability analysis, NTT Com Security. “Fortunately, business leaders are now recognizing the risk to their organizations’ revenues and reputations, and beginning to take action to protect critical and confidential data from attacks.”
Survey participants reported that they expect to suffer severe monetary and reputational consequences from an information security breach. Respondents estimate a breach would take nine weeks to recover from and would cost, on average, $907,053, even before taking into consideration the cost of any reputational damage, brand erosion and lost business.
Additionally, decision makers approximate that connected remediation costs would include legal fees, compensation to customers, third party resources and fines or compliance costs. Other expected remediation costs include public relations/communications and compensation to suppliers and employees. Further, companies predict a 13% drop in revenue as a result of a breach.
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According to the report, almost all respondents say they would suffer external and internal impacts if data was stolen in a security breach, including loss of customer confidence (69%) and damage to reputation (60%). One third of business decision makers also expects to resign or expects another senior colleague to resign as a result of a breach.
While 54% of those surveyed say information security is “vital” to their business and nearly a fifth (18%) agree that poor information security is the “single greatest risk,” two-thirds (65%) predict that their organization will suffer a data breach sometime in the future.
The report, titled “Risk:Value 2016,” can be downloaded here. A related infographic can be viewed here.
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