Attacks continue to increase and, accordingly, the cost of enterprise data breaches rose to $1.41 million, up from $1.23 million in the previous year, according to new research.
In addition, enterprises invested more in cybersecurity in 2019, with IT security budgets averaging $18.9 million compared to $8.9 million in 2018, according to a report from Kaspersky.
Enterprises with an internal Security Operation Center (SOC) estimated their financial damage from a cyberattack at $675,000 in 2019, less than half the average impact cost at $1.41 million in 2018, according to the Kaspersky survey entitled, “IT security economics in 2019: how businesses are losing money and saving costs amid cyberattacks.”
Enterprises can reduce the financial impact of data breaches by building an internal SOC responsible for the ongoing monitoring of security events and incident response. There are also savings for larger SMBs (with 500+ employees) who adopt a SOC, with the financial impact of a data breach for these businesses estimated at $106,000, compared to $129,000 if an SOC is not in place.
Additionally, the survey showed 34 percent of companies of all sizes with a dedicated Data Protection Officer (DPO) reported cyber incidents at their organization did not result in monetary loss.
Enterprises can also consider hiring a DPO to mitigate the cost of data breaches. DPO’s are responsible for building and implementing data protection strategy within a company as well as managing compliance issues. The survey highlighted that more than one-third of organizations (34 percent) with a DPO that suffered a data breach did not incur any financial loss, compared to only one-fifth (20 percent) of businesses overall.
“Establishing an internal SOC involves purchasing the necessary tools, building processes and recruiting analysts, which can be a challenge for any business,” said Veniamin Levtsov, vice president of corporate business at Kaspersky.
“Likewise, finding a DPO who can combine IT security and legal knowledge is not an easy task,” Levtsov said. “These require time and budgets, and security leaders often find it difficult to justify such initiatives. But as we can see, these are worthwhile investments. Of course, just having a dedicated employee or even special subdivision does not guarantee that a company will not suffer a data breach. However, it does ensure that the business is prepared for these incidents, allowing them to recover from an attack more quickly and efficiently.”
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