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3: Monetary loss

Aside from theft, there are several ways in which a company can incur financial losses as a
result of cyber crime. According to Kaspersky Lab, the direct expenses of recovering from a
data breach cost small businesses an average of $38,000, and this doesn’t even account for the
ongoing costs caused by a loss of trust or valuable resources. Large companies with deeper
pockets can be expected to pay closer to half a million dollars, but they’re much better equipped
to ride the waves of uncertainty that follow an attack, even if the amounts of money involved are
much greater for them. Ironically, it’s small companies with fewer resources to protect
themselves who have the stronger imperative to do so.

4: Penalties for failing to protect data

A company may have its own assets put at risk by cyber crime, but this doesn’t negate the
responsibility to protect sensitive customer data. This is reflected by the threat of fines from
global authorities, whose aim is to protect the interests of the population by refining and
enforcing data protection laws. In the coming years, these authorities can be expected to
develop sanctions to ensure that companies are giving adequate protection to the data they
hold. One figure mooted by the European Parliament as a fine for privacy breaches, is as much
as 20 million euros – an amount that would put many smaller companies out of action for good.

5: Intangible costs

Being the victim of a cyber attack will inevitably place a huge immediate financial burden on any
organization, but there are many additional costs hiding beneath the surface, that may not be
seen at first glance. Especially where a company has poor continuity planning or business
resilience strategies in place, it could see its operations suffer long into the future as it struggles
to get back on track. Add increasing insurance premiums and interest payments into the mix,
and the road to recovery can be a rocky one indeed.

In the modern business world, it’s becoming ever clearer that cyber security is no longer solely
an IT issue; and the requirement to be safe isn’t restricted to larger companies either. Any
organization that fails to protect itself well enough is placing its very existence at risk – these
days, putting comprehensive security measures in place is simply an unavoidable part of
running a business.

About the Author

Asher de Metz has approximately 20 years of experience in the cyber security industry
consulting to some of the world’s largest companies in all of the top vertical markets. Starting in
London he has worked across Europe, the Middle East, and has spent the last 8 years in
America working for Sungard Availability Services where he runs the Technical Security
Practice.

87 Cyber Warnings E-Magazine – June 2017 Edition
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