The document discusses the rising data security risks and their financial impact on businesses, highlighting that large businesses face costs averaging £1.5 million per breach while small to medium-sized businesses incur costs of around £75,000. A significant percentage of companies anticipate increased security incidents, prompting necessary changes in operations to mitigate potential downtime and financial losses. Key contributors to these breaches include employee fraud and cyber espionage, with recommendations on improving IT security practices and workforce training to prevent further issues.

1. Data Security Risks
And The Cost of
Business Continuity

2. The state of data
security isn’t healthy.

3. The number of security
breaches has increased.

4. The scale and cost
has nearly doubled.

5. But 59% of businesses still
expect more security incidents
to occur in the next year.

6. So what does this all mean?
?

7. It means your business operations
will need to change.

8. Why?

9. Because the average data
security breach costs:
Large Businesses
£1.5m
Small & Medium Size
Businesses
£75k

10. Loss of business continuity
brings more costs.
Data breaches create
downtime
Downtime means loss of
business continuity

11. The nature of the breach will determine the length of
downtime and ultimately the business continuity cost.
So let’s imagine the
worst case scenarios.

12. 14 breaches a year
£3.1m cost per breach
Annual cost = £43.4m
Large business

13. 4 breaches a year
£311k cost per breach
Annual cost = £1.24m
Small business

14. What do these
costs consist of?
?

15. In Kapersky Labs’ global study,
they found the following:
SMB Enterprise
Proposition of
business incurring
this expense
Typical
losses
Proportion of business
incurring this expense
Typical
losses
Professional
services
Lose business
opportunities
Down time
Total expected
typical damage
$384K $551K
88% £11K 88% $84K
32% $16K 29% $203K
34% $66K 36% $1.4M

16. What sort of breaches are
causing so much disruption
and costly payouts?

17. According to Kapersky Lab, the top 3
most expensive security breaches are:
Employee
Fraud
Cyber
Espionage
Third
Party Failure

18. The ICO found that the most prevalent
security incidents for businesses, from
January - March 2016, were insecure web
pages being targeted by hackers. (42%)

19. However it’s not just IT business
costs you should worry about.

20. Other big consequences include:
● Damage to company reputation.
● Temporary loss of access to
information critical to
business continuity.
● Loss of ability to do business.

21. This isn’t anything
to take lightly.

22. 11% of organisations changed
the nature of their business as a
result of their worst breach.

23. But what if you weren’t
aware of your
business’ IT security
threats?
?

24. 14% of IT management admitted
they have never communicated data
security threats to their board.
?
?
?

25. For an infrastructure that can
recover from a data protection
breach, standardisation is
required across 3 main areas
of your business...

26. Staffing Training Systems

27. But this means you must stretch
your IT budget even further.

28. These costs are indirect to the
recovery, yet 75% of security
breaches led to unexpected
expenses.

29. SMBs - $8k
Large business - $69k

30. Make sure you….
Educate the workforce
around your data protection
plan and what everybody is
to do in the event of one.

31. Make sure you….
Provide adequate
training on hosted and
cloud based systems.

32. Make sure you….
Choose the right
technology for your business and
ensure your IT strategy is centric to
the wider needs of the business.

33. Discover how to reduce the downtime and maintain
steady output in times of a breach in our guide
Data Protection: A Modern Threat to Modern Business