Data Breach Expenditures Decreased by Over Fifty Percent With an Internal Security Operations Center Set Up

On behalf of Kaspersky Lab, a B2B International survey recently performed confirmed there is an increase in the average expense of a data breach at the enterprise-level from $1.23 million (2018) to $1.41 million.

The greater risk of a data breach and the escalating expenses of remediation has made enterprises to spend more funds in cybersecurity. As per the Kaspersky Global Corporate IT Security Risks Survey, the average funding for IT security in 2018 was $8.9 million. The average funding this 2019 is $18.9 million.

The largest expenses that come with a data breach are the following: wrecking of the firm’s credit standing and great insurance fees, the price tag of employing external security professionals, poor business, brand restoration, additional salaries for the internal workforce, reimbursement, and finance charges and regulatory fees.

Though there are a couple of things companies could do to slash data breach expenses, the assignment of a committed Data Protection Officer (DPO) and implementing an internal Security Operations Center (SOC) are the two most critical actions for minimizing cyber attack-related expenses.

A DPO is in charge of developing and using a data protection tactic and tracking and handling compliance concerns. 34% of companies with a DPO claimed that security problems at their organization did not end in financial deficits, as opposed to 20% of all companies.

The normal expense of data breach at a company having an internal SOC was $675,000, which is lower than 50 % the cost of a breach at a company not having an internal SOC. The corresponding expense at major SMBs (having 500+ workforce) was $129,000. With the help of an internal SOC to supervise and take action on security occurrences, the data breach expense was lowered to $106,000.

According to the survey, data breach expenses for enterprises go up if security is outsourced to managed service providers. 23% of firms that employed an MSP had data breach expenses between $100,000 to $249,000, as opposed to 19% of firms that have an internal IT security staff.

Getting a DPO and creating an internal SOC could help in lowering the possibility of a data breach transpiring, however, it doesn’t mean that would prevent all data breaches. Having these key employees ready prepares the organization any time a breach does take place. The response will be fast and effective keeping the costs down.

Hiring a DPO and staff members for an internal SOC, and acquiring the required tools might be a lengthy and expensive process, nevertheless, the survey indicates investment in important internal security personnel is undoubtedly beneficial and could considerably lower the expense linked with data breaches. 61% of companies and SMBs in the U.S.A. are intending to increase investment in expert IT personnel in the subsequent 12 months.

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Christine Garcia is the staff writer on Calculated HIPAA. Christine has several years experience in writing about healthcare sector issues with a focus on the compliance and cybersecurity issues. Christine has developed in-depth knowledge of HIPAA regulations. You can contact Christine at [email protected]. You can follow Christine on Twitter at https://twitter.com/ChrisCalHIPAA