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How a Security Breach Hurts Your Businesses' Bottom Line

Posted by Shawn O'Brien on Oct 24, 2016

Security breaches can greatly impact your company's bottom line.
Security breaches can greatly impact your company's bottom line.

As a business owner, you need to take IT security seriously. Not doing so threatens your company's bottom line due to lost customers and revenue - and possibly top officials if they lose their jobs, which can destabilize departments.

 

As proof IT security can cost your company a bundle of money, let's first examine data regarding how customers feel about and act towards companies that have been breached.

 

" When organizations are breached, 36 percent of people, on average, noted their perception of the organization decreased."

In a study conducted by market research specialist Vanson Bourne of 6,500 customers from various companies, 66% of respondents said companies should inform them immediately of a data breach and possible data loss. When organizations are breached, 36%, on average, noted their perception of the organization decreased. And this type of negative publicity impacts the bottom line, according to the report, in the form of a decrease in purchase spending and an increase in possible legal action. On average, 73% of customers said they'd stop purchasing from a company if it was breached due to poor data security measures, and 60% noted they'd take legal action if their information was stolen.

 

Separate IBM research reported that, on average, breaches cost companies upwards of $4 million per incident, which is a 29% rise since 2013.

 

If you haven't taken the necessary IT security protocols to protect your customer's private data, you need to make it a top priority. Because, as these numbers from Vanson Bourne and IBM indicate, customers value data protection and your ability to protect it.

 

To keep your customers and bank account protected from cyber threats, you must:

 

1. Educate employees: Make sure IT professionals are well equipped to deal with the latest cyber threats, which are constantly evolving. Also, hire an experienced chief security officer to head or help build your IT team.

 

2. Use the best technology: Highly skilled employees are often as good as the tools they're provided. So make sure you give them the best IT security applications and hardware available to ward off cyber attacks.

 

3. Create a plan: Developing a solid strategy to help your company deal with a breach can help you retain customers who may feel skittish and attempt to back away from your company. The long term implication of customer loss can devastate your business. Think about it. Not only will you lose loyal customers who may feel skeptical about working with you again (as the Vanson Bourne study noted), but you could struggle to gain new ones as well.

 

It's critical your company understand the financial implications - both in the short and long term - of security breaches. By realizing and accepting that cybercriminals can cost your company hundreds, if not thousands or millions of dollars, you can take the necessary steps you protect it.

How You Can Gain Peace of Mind

EiQ offers two SOCVue® hybrid security-as-a-service solutions that can help organizations of any size affordably and effectively improve their cybersecurity and compliance posture:

  • SOCVue Security Monitoring gives you visibility and control over your IT environment. You’ll get best-of-breed Log Management and SIEM that is managed around-the-clock for real-time threat detection, analysis and notification, proactive remediation guidance, and compliance auditing.
  • SOCVue Vulnerability Management reduces your attack surface and mitigates risk with unlimited managed scans, analysis, risk prioritization, and remediation guidance. Focus on what matters most: your core business.

EiQ’s SOCVue combine the best people, process, and technology to build the enterprise-class IT security program your organization needs. That’s because SOCVue gives you the flexibility and cost savings of a security software-as-a-service offering, but also provides a world-class team of security and technology experts to manage the technology and help implement cybersecurity best practices.

 

With all the challenges you face today while trying to keep your organization safe, having the best IT security solutions in your corner should not be one of them. Request a demo today to see how quickly and affordably you can improve your security and compliance posture with EiQ.

 

Request Free Demo Now! 

Tags: Data Breach, Risk Management, Security Risks

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