In today’s business landscape, most companies have accepted the reality that the likelihood for a security incident has significantly increased. Data breaches have dominated the headlines in recent months and more organisations are realising they need to increase their security posture and be better prepared to manage a breach. The challenge is that this often requires additional resources.

The good news is there are not only steps that companies can take to reduce these costs, but evidence shows that having the proper protocols in place is already having an impact. As more organisations learn how to identify and respond to security incidents and data breaches, the cost per record of a data breach is trending downward. In fact in 2012, according to the Ponemon Institute, the cost per record dropped from $194 in 2011 to $188 in 2012 (‘2013 Cost of Data Breach Study: Global Analysis’, May 2013). However, security incidents and other breaches can still cause significant business disruption if not properly managed with the number of reported breaches on the rise.

The essentials for reducing cost

There are several key factors to consider that can help reduce expenses incurred from a data breach, from having a strong security system in place, to properly managing the response and remediation with affected victims. Recent study findings have shown that organisations that are the most successful in reducing the cost of a breach have a Chief Information Security Officer (CISO) and an incident response plan (‘Managing Cyber Security as a Business Risk: Cyber Insurance in the Digital Age’, Ponemon Institute, August 2013)

Apr-Jun 2014 Issue

Experian Data Breach Resolution