5 Not-So-Obvious Cyberattack Costs That CEOs Need to Consider
Most CEOs and CISOs already know that cyberattacks can cost their organizations a lot for technical investigation, mediation and cyber security improvements. The average cost of a data breach is $4M, up 29% from 2013, according to the 2016 Cost of Data Breach Study from the Ponemon Institute and IBM.
But there are hidden costs behind breaches that can account for more than 90 percent of the total cost of a cyberattack — and extend for years. The business impact of a cyberattack can be huge, according to a new report from audit and consulting firm Deloitte, Beneath the Surface of a Cyberattack: A Deeper Look at Business Impacts. It can include intellectual property (IP) theft, disruption of core operations and the destruction of critical infrastructure. Most cyber security policies take into account:
- Customer breach notification
- Post-breach customer protection
- Public relations
- Legal fees
These additional factors can be more difficult to quantify, such as:
- Insurance premium increases
- Increased cost to raise debt
- Lost value of customer relationships
- Value of lost contracts
- Devaluation of corporate brand
Because every cyberattack is unique, not all of the above factors will occur every time. Yet for each factor that is felt, security, risk and legal professionals will need to take a specific approach to estimating costs. For example, a company would use a different calculation to determine the cost of attack-related litigation than to determine the cost of lost IP.
Don’t Go It Alone
CISOs need to bring all their forces to bear on the growing threat and costs of cyberattacks. Fortunately, they don’t need to go it alone. Managed Security Service Providers (MSSPs) have proven their worth as trusted, expert partners in the battle against cyber crime, providing the ultimate integration of people, process and technology.
MSSPs are helping many IT departments around the world address these critical security capabilities:
- Improve the security of customer-facing applications
- Address existing threats and vulnerabilities
- Strengthen advanced threat intelligence
- Boost mobile security
Discover how working with an MSSP can give you the extra staff and expertise to keep your organization safe. Download the Masergy report, There’s Help for CISOs Overwhelmed by Cyber Security Threats today.