The Businesses Costs Of A Data Breach-巴雷特m82a1

The greatest fear of any CEO, CIO or CSO is that the security of the sensitive information held by their .pany has been .promised. The first consideration should be given to the customer; after all, it is their privacy which has been invaded. After dealing with this, there is the nightmare of all the costs which your .pany will incur as a result. The average cost to a .pany resulting from a data breach in 2007 was $6.3 million! A survey conducted by the Ponemon Institute found that 58% of respondents who had received notification that their personal information had been .promised by a data breach had lost confidence in the .pany and that 31% planned to cease doing business with the .pany. The cost of notification alone may .e to as high as $197 per letter. Most states now have laws regarding privacy protection in place requiring .panies to notify all customers, vendors and employees in the event that personal information has been .promised by a data breach. There are federal laws such as SOX, FACTA, HIPAA and GBL which lay out the responsibilities of .panies with regards to the protection on personal information including medical records, credit card information and financial statements. The FTC (Federal Trade .mission) and other organizations which are responsible for .pliance with privacy laws will investigate whether a .pany whose data has been .promised took appropriate action to ensure the safety of data. Class action suits will be filed on the behalf of those whose information was put at risk and vendors and banks may sue to recoup any losses they have suffered as a result of your data breach. These are just a few of the ways that a data breach can be expensive for your .pany – there are both direct and indirect costs which may be incurred. Direct Costs 1. Customer notification 2. FTC fines 3. Law suits 4. Falling stock price 5. Higher insurance premiums 6. Lower credit rating 7. Higher interest rates on loans 8. Lay offs due to reduced earnings 9. New .puter security equipment purchases 10. New marketing campaigns to reassure customers, media and vendors. 11. Court fees 12. Attorney fees 13. Unpaid purchases Indirect fees are harder to track exactly, but are no less real for that. There will be a significant amount of time and money which will have to be invested in marketing and advertising campaigns to rebuild the brand and reassure consumers. The firm itself, especially the executives will find itself carrying the blame for the attack. News of the data breach will be broadcast; and questions will be asked as to where the .pany went wrong in their .puter security strategy – and worse yet, why they didn’t do more to protect this sensitive information. The following is a list of just some of the indirect costs that a .pany may face ein the wake of a data breach: Indirect costs: 1. Damaged .pany brand and reputation. 2. Greater investment needed to regain customer confidence 3. Diminishing new accounts. 4. .petition may acquire your customers, giving them more resources to promote their business 5. Paying for credit reports to for your customers and/or employees. 6. Biennial security assessments for the next 20 years. 7. Employee preparation for biennial security audits. 8. Employee security awareness training. 9. Developing, implementing and managing new security policies. 10. Bad press. 11. Negative stock analysis reports. 12. Corporate executive and managers will have to re-direct their efforts to damage control and rather than corporate growth. It is far less expensive to prevent a data breach than to pay for all of the costs they can cause your .pany after the fact. Preventive measures can easily and quickly be put into place; to implement an effective data security strategy, there are four areas of vulnerability which must be assessed: Physical, Employee, .puters and Networks, followed by employee education and implementing an integrated security strategy. Finally, when the .pany’s executives and managers investigate security solutions, do not to include employee convenience in the equation. An employee will always circumvent security for their own convenience. About the Author: Whenever a roof structure has leakages and heat retaining material issues, it may cause concern to the property owner. You can put roof covering on yourself. Feel fre … 相关的主题文章: