What is Your Budget for a Cyber-Breach?

“The time is now to take control of your business and protect yourself from an inevitable breach attempt.”(Source 1)

We promised no scare tactics in 2018.  We also promised to provide awareness, and answers to the problems our respective businesses face.  One of the challenges relative to a cyber-breach is understanding the impact and cost one might have on your organization.  According to a 2017 Survey (source 2) of over 5000 businesses the average cost of a cyber-breach for small to medium businesses is $117,000. That sounds like a big number, and it helps to see some of the areas that were factored to put the dollars into perspective – here are the larger items and associated average expenses that comprise the total: 

  • Lost Business $21k
  • Employing External Professionals $21K
  • Additional Internal Staff Wages $16k
  • Damage to Credit Rating/Insurance Premiums $11k
  • Improving Software & Infrastructure $11k 

“Experts say these kinds of attacks can be so damaging to revenue and customer expectations that small businesses are forced to close.” – New York Times

Having some information on the average costs associated with a cyber-breach is only part of the equation.  An article published by the Insurance Journal (source 3) found that more than 50% of businesses reported being hacked in the previous 12 months, yet another surveyof small business owners showed that almost 90% of owners do NOT feel they are at risk of experiencing a cyber-breach.  

“Hackers know small businesses have less resources to assist in achieving requisite defense mechanisms (whether it be shortage of staff or budget), and have targeted them at an alarming and increasing rate each year.” (source 1)

 

Our experience, along with supporting statistical data is reinforcing the fact that WE (small businesses), are being targeted at an increasing rate. Hackers know that WE do not spend as much as larger organizations, and WE need to realize that with regard to whether or not your business will experience a cyber-breach, it is more a question of when, than if.  Here are steps you can take:

  • Look to invest in cyber Insurance - but this type of insurance is in its infancy so be careful (source 5)
  • Develop a plan and budget for potential costs associated with a cyber-breach
  • Invest in additional security measures beyond that of traditional defenses (source 1)

Mytech’s SecureWorker™ program was designed to enhance traditional cyber-security defenses, and specifically mitigate the highest probability cyber-risks that exist today.  While SecureWorker™ does involve additional investment, it is far less than the cost and impact a cyber-breach can have on your organization. 

Sources:

1 - Data Breach Statistics 2018: Everything you need to know

2 – IT Security: Cost center or strategic investment?

3 - Half of U.S. Businesses Report Being Hacked

4 - Are Small Business Owners Protecting Themselves from Cyber Attack?

5 – The Cost of Cyber Breach – How Much Your Company Should Budget

 

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