The Risks of Cyber Crime
Any company whose computers are connected to the Internet, regardless of size, can potentially be attacked every second of every day. Their employees, customers, suppliers or anyone else to whom they are connected can potentially, knowingly or unknowingly cause an information, cyber security or privacy incident for the company.
A company that has been impacted by an incident can be adversely financially impacted through:
- loss of productivity
- direct financial theft
- cost of forensic investigation
- fines and penalties
- payment of reparations and credit monitoring for affected customers
- gradual loss of business resulting from the damage to their reputation
Potential Costs of a Breach
Recent studies indicate that the average cost of a privacy breach to a small business was in the range of $50-$75K, with some much higher. The average breach costs the company $200 per record, which might not sound like much until you do the math. If you have 100 records it can cost you $20K. If you have 10,000 records, it can be $2 million. Is it worth taking chances?
Advantages of a Written Information Security Plan
Companies who take steps to identify and mitigate their information security risks are less likely to suffer an incident and better able to handle it and recover quickly in the event that it happens. In the event of legal action against them resulting from a security or privacy breach, having security and privacy programs and policies in place can be an important part of a company’s defense.
Knowledgeable companies are more likely to do business with vendors and other companies who have cyber-security policies in place because it reduces the risk of them being indirectly impacted by their vendors vulnerabilities.
Having a written information security policy can reduce your premiums for cyber liability insurance, an important coverage that is not generally included in commercial liability policies.
Companies that make their information security plan, disaster recovery and business continuity policies part of their business plan are perceived by both lenders and potential buyers or partners as being more professional and prepared, making them a much better risk as a borrower or acquisition.