Although it’s hard to determine precisely how much a data breach could cost a business, it’s essential to understand the various factors that affect the Cost of a breach. For instance, the size of your organization and the industry you operate in can affect the numbers.
Different factors, such as the type of incident, the size of the company, and the region where it is located, can affect how much damage a data breach can cost an organization. Before you start planning on minimizing the impact of a data breach, it is essential to assess the multiple costs that can be incurred.
What is a Data Breach?
A data breach is a type of security incident that occurs when an organization’s security system cannot prevent unauthorized access to its information. Both external and internal actors can be involved in a data breach. For instance, if an employee accidentally sends an email address to an incorrect recipient, they are responsible for the incident.
A data breach can also affect an organization’s operations, as an employee may access a company’s confidential data without authorization.
The types of confidential data that an organization has are usually different. For instance, it’s usually protected when it comes to personal data. On the other hand, when it comes to business data, it’s usually stored in intellectual property.
Costs of Data Breaches
The Cost of data breaches in 2020 was nearly 4 million, slightly lower than the figure from the previous year. However, it was still higher than the average Cost of a breach that occurred in 2019. The report also noted that the US experienced a 5.49 percent increase in data breaches in 2020. The Cost of a Data Breach report, which is in its 17th year, provides a comprehensive analysis of the various factors that affect the Cost of a data breach. It also offers recommendations to help minimize the impact of the incident.
In 2022, a damaged reputation is regarded as one of the most significant costs associated with a data breach. Aside from handling a higher volume of breaches, businesses also have to wait longer to confirm and detect a breach, which is why third-party lawsuits are commonly filed related to data breaches.
Reducing Costs
You must limit access to certain data sets to prevent unauthorized access to a company’s confidential data. Also, regularly update software and implement strong passwords for all employees. In addition, invest in employee training programs to help prevent social engineering attacks.
One of the most critical factors businesses should consider when addressing a cybersecurity incident is a fast response time. A working post-breach protocol can help keep the organization cool and prevent further damage.