Ponemon Institute and Tripwire Inc. conducted The True Cost of Compliance research to determine the full costs associated with an organization's compliance efforts. This benchmark study of multinational organizations provides a clear understanding of the differences between compliance and non-compliance costs incurred when complying with laws, regulations and policies. Additionally it details steps that can be adopted to reduce risk, protect data, improve security and support compliance activities across the organization.
How to integrate risk into your compliance-only approachAbhishek Sood
Information security policies and standards can oftentimes cause confusion and even liability within an organization.
This resource details 4 pitfalls of a compliance-only approach and offers a secure method to complying with policies and standards through a risk-integrated approach.
Uncover 4 Benefits of integrating risk into your compliance approach, including:
Reduced risk
Reduced deployment time
And 2 more
Managing Privacy Risk and Promoting Ethical Culture in the Digital AgePerficient, Inc.
Businesses that responsibly manage privacy and educate their customers about their privacy practices benefit greatly - especially with regard to positive brand development.
To Be Great Enterprise Risk Managers, CISOs Need to Be Great CollaboratorsElizabeth Dimit
Blog post discussing why CISOs need to collaborate with privacy, legal, and product teams to effectively identify and mitigate risk in their organization.
How to integrate risk into your compliance-only approachAbhishek Sood
Information security policies and standards can oftentimes cause confusion and even liability within an organization.
This resource details 4 pitfalls of a compliance-only approach and offers a secure method to complying with policies and standards through a risk-integrated approach.
Uncover 4 Benefits of integrating risk into your compliance approach, including:
Reduced risk
Reduced deployment time
And 2 more
Managing Privacy Risk and Promoting Ethical Culture in the Digital AgePerficient, Inc.
Businesses that responsibly manage privacy and educate their customers about their privacy practices benefit greatly - especially with regard to positive brand development.
To Be Great Enterprise Risk Managers, CISOs Need to Be Great CollaboratorsElizabeth Dimit
Blog post discussing why CISOs need to collaborate with privacy, legal, and product teams to effectively identify and mitigate risk in their organization.
All information, data, and material contained, presented, or provided on is for educational purposes only.
Company names mentioned herein are the property of, and may be trademarks of, their respective owners.
It is not to be construed or intended as providing legal advice.
Company names mentioned herein are the property of, and may be trademarks of, their respective owners and are for educational purposes only.
17 U.S. Code § 107 - Limitations on exclusive rights: Fair use
Notwithstanding the provisions of sections 106 and 106A, the fair use of a copyrighted work, including such use by reproduction in copies or phonorecords or by any other means specified by that section, for purposes such as criticism, comment, news reporting, teaching (including multiple copies for classroom use), scholarship, or research, is not an infringement of copyright.
Enterprise Encryption and Authentication Usage: Survey ReportEchoworx
Enterprise Encryption and Authentication Usage: A Survey Report contains the findings of market research conducted on behalf of Echoworx by Osterman Research.
The study polled the views IT decision makers and influencers, managing on average 14,000 email users per organization, to assess the adoption of encryption technologies in email for communicating sensitive and confidential records.
This study found that file sharing is increasingly important in law firm collaboration and while those firms are keenly aware of the consequences of IT security risks, unencrypted email – reinforced with a statement of confidentiality – remains the primary mechanism for sharing files.
Managing Cyber Risk: Are Companies Safeguarding Their Assets?EMC
This white paper summarizes the results of a survey done by RSA, NYSE Governance Series, and Corporate Board Member, in association with Ernst & Young, with 200 audit committee members responding on a variety of issues regarding their cyber risk oversight program.
CEI Compliance is the UK's fastest growing regulatory consultancy and provides associate opportunities to consultants and cost effective value to financial services and other regulated companies.
We show you the methodology for conducting the Compliance Risk Assessment and how to provide meaningful action plans.
Edelman Privacy Risk Index Powered by PonemonEdelman
The Edelman Privacy Risk Index℠ is a global study that reveals many organizations lack the business behaviors and compliance practices necessary to adequately address growing consumer and regulatory concerns about data security and privacy.
CAEs speak out: Cybersecurity seen as key threat to growthGrant Thornton LLP
In Grant Thornton LLP’s fifth annual survey of chief audit executives (CAEs), financial services CAEs revealed that they see considerable room for improvement when it comes to their risk management functions. Here are our findings.
The responsibility of superannuation trustees is greater than that of typical businesses - holding an important economic and public policy role to Australian society to provide income in retirement. What duty or responsibility do superannuation trustees have towards environmental, risk, and governance factors?
New York State Department of Financial Services Expands Its Cyber Focus to In...NationalUnderwriter
New York State Department of Financial Services Expands Its Cyber Focus to Insurers by Eric R. Dinallo, Jeremy Feigelson, David A. O’Neil, Jim Pastore, and Jordan R. Friedland
The New York State Department of Financial Services (“DFS”) recently announced a major expansion of its cybersecurity efforts: DFS will require insurers to respond to a special “comprehensive risk assessment” on cybersecurity, with those assessments to be followed by an enhanced focus on cybersecurity as part of DFS’s regular examinations of insurers. DFS’s announcement expands to insurance the increasingly rigorous approach it has recently applied to banks in the area of cyber security. More importantly, it offers critical guidance to all industries about what regulators will consider adequate precautions and preparation in this area.
Sharing the blame: How companies are collaborating on data security breaches, is an Economist Intelligence Unit research project, sponsored by Akamai Technologies, exploring the ways in which organisations are collaborating to deal with the disclosure of data security breaches. How are they co-operating with governments, other companies and third parties in areas such as requirements for the public disclosure of such breaches? Do they have consistent cyber security policies? To what extent are they sharing best practices?
Performing a legal and compliance risk assessment. A Step-by-Step Implementation Guide-
Planning the Risk Assessment
Assessing and Prioritizing Risks
Improving Legal Risk Mitigation
State of Compliance 2021 at Mid-Market Firms - NimonikNimonik
Nimonik.com recently conducted a survey of 100 compliance and risk professionals in the US, USA and in China. The participants were from mid-market firms (500-15,000 employees) and were leaders within their organization. These insights show that there remains much work to be done to achieve comprehensive compliance across mid-market firms.
Cost of Data Breach Study in 2015 - United States - Presented by IBM and Pono...David J Rosenthal
IBM and Ponemon Institute are pleased to present the 2015 Cost of Data Breach Study: United
States, our 10th annual benchmark study on the cost of data breach incidents for companies
located in the United States. The average cost for each lost or stolen record containing sensitive
and confidential information increased from $201 to $217. The total average cost paid by
organizations increased from $5.9 million to $6.5 million.
Ponemon Institute conducted its first
Cost of Data Breach study in the
United States 10 years ago. Since
then, we have expanded the study to
include the United Kingdom,
Germany, France, Australia, India,
Italy, Japan, Brazil, the United Arab
Emirates and Saudi Arabia, and for
the first time, Canada. To date, 445
US organizations have participated in
the benchmarking process since the inception of this research.
This year’s study examines the costs incurred by 62 U.S. companies in 16 industry sectors after
those companies experienced the loss or theft of protected personal data and then had to notify
breach victims as required by various laws. It is important to note the costs presented in this
research are not hypothetical, but are from actual data loss incidents. They are based upon cost
estimates provided by individuals we interviewed over a ten-month period in the companies that
are represented in this research.
The number of breached records per incident this year ranged from 5,655 to 96,550 records. The
average number of breached records was 28,070. By design, we do not include cases involving
more than 100,000 compromised records because they are not indicative of data breaches
incurred by most organizations. Thus, to include them in the study would artificially skew the
results.
All information, data, and material contained, presented, or provided on is for educational purposes only.
Company names mentioned herein are the property of, and may be trademarks of, their respective owners.
It is not to be construed or intended as providing legal advice.
Company names mentioned herein are the property of, and may be trademarks of, their respective owners and are for educational purposes only.
17 U.S. Code § 107 - Limitations on exclusive rights: Fair use
Notwithstanding the provisions of sections 106 and 106A, the fair use of a copyrighted work, including such use by reproduction in copies or phonorecords or by any other means specified by that section, for purposes such as criticism, comment, news reporting, teaching (including multiple copies for classroom use), scholarship, or research, is not an infringement of copyright.
Enterprise Encryption and Authentication Usage: Survey ReportEchoworx
Enterprise Encryption and Authentication Usage: A Survey Report contains the findings of market research conducted on behalf of Echoworx by Osterman Research.
The study polled the views IT decision makers and influencers, managing on average 14,000 email users per organization, to assess the adoption of encryption technologies in email for communicating sensitive and confidential records.
This study found that file sharing is increasingly important in law firm collaboration and while those firms are keenly aware of the consequences of IT security risks, unencrypted email – reinforced with a statement of confidentiality – remains the primary mechanism for sharing files.
Managing Cyber Risk: Are Companies Safeguarding Their Assets?EMC
This white paper summarizes the results of a survey done by RSA, NYSE Governance Series, and Corporate Board Member, in association with Ernst & Young, with 200 audit committee members responding on a variety of issues regarding their cyber risk oversight program.
CEI Compliance is the UK's fastest growing regulatory consultancy and provides associate opportunities to consultants and cost effective value to financial services and other regulated companies.
We show you the methodology for conducting the Compliance Risk Assessment and how to provide meaningful action plans.
Edelman Privacy Risk Index Powered by PonemonEdelman
The Edelman Privacy Risk Index℠ is a global study that reveals many organizations lack the business behaviors and compliance practices necessary to adequately address growing consumer and regulatory concerns about data security and privacy.
CAEs speak out: Cybersecurity seen as key threat to growthGrant Thornton LLP
In Grant Thornton LLP’s fifth annual survey of chief audit executives (CAEs), financial services CAEs revealed that they see considerable room for improvement when it comes to their risk management functions. Here are our findings.
The responsibility of superannuation trustees is greater than that of typical businesses - holding an important economic and public policy role to Australian society to provide income in retirement. What duty or responsibility do superannuation trustees have towards environmental, risk, and governance factors?
New York State Department of Financial Services Expands Its Cyber Focus to In...NationalUnderwriter
New York State Department of Financial Services Expands Its Cyber Focus to Insurers by Eric R. Dinallo, Jeremy Feigelson, David A. O’Neil, Jim Pastore, and Jordan R. Friedland
The New York State Department of Financial Services (“DFS”) recently announced a major expansion of its cybersecurity efforts: DFS will require insurers to respond to a special “comprehensive risk assessment” on cybersecurity, with those assessments to be followed by an enhanced focus on cybersecurity as part of DFS’s regular examinations of insurers. DFS’s announcement expands to insurance the increasingly rigorous approach it has recently applied to banks in the area of cyber security. More importantly, it offers critical guidance to all industries about what regulators will consider adequate precautions and preparation in this area.
Sharing the blame: How companies are collaborating on data security breaches, is an Economist Intelligence Unit research project, sponsored by Akamai Technologies, exploring the ways in which organisations are collaborating to deal with the disclosure of data security breaches. How are they co-operating with governments, other companies and third parties in areas such as requirements for the public disclosure of such breaches? Do they have consistent cyber security policies? To what extent are they sharing best practices?
Performing a legal and compliance risk assessment. A Step-by-Step Implementation Guide-
Planning the Risk Assessment
Assessing and Prioritizing Risks
Improving Legal Risk Mitigation
State of Compliance 2021 at Mid-Market Firms - NimonikNimonik
Nimonik.com recently conducted a survey of 100 compliance and risk professionals in the US, USA and in China. The participants were from mid-market firms (500-15,000 employees) and were leaders within their organization. These insights show that there remains much work to be done to achieve comprehensive compliance across mid-market firms.
Cost of Data Breach Study in 2015 - United States - Presented by IBM and Pono...David J Rosenthal
IBM and Ponemon Institute are pleased to present the 2015 Cost of Data Breach Study: United
States, our 10th annual benchmark study on the cost of data breach incidents for companies
located in the United States. The average cost for each lost or stolen record containing sensitive
and confidential information increased from $201 to $217. The total average cost paid by
organizations increased from $5.9 million to $6.5 million.
Ponemon Institute conducted its first
Cost of Data Breach study in the
United States 10 years ago. Since
then, we have expanded the study to
include the United Kingdom,
Germany, France, Australia, India,
Italy, Japan, Brazil, the United Arab
Emirates and Saudi Arabia, and for
the first time, Canada. To date, 445
US organizations have participated in
the benchmarking process since the inception of this research.
This year’s study examines the costs incurred by 62 U.S. companies in 16 industry sectors after
those companies experienced the loss or theft of protected personal data and then had to notify
breach victims as required by various laws. It is important to note the costs presented in this
research are not hypothetical, but are from actual data loss incidents. They are based upon cost
estimates provided by individuals we interviewed over a ten-month period in the companies that
are represented in this research.
The number of breached records per incident this year ranged from 5,655 to 96,550 records. The
average number of breached records was 28,070. By design, we do not include cases involving
more than 100,000 compromised records because they are not indicative of data breaches
incurred by most organizations. Thus, to include them in the study would artificially skew the
results.
Whitepaper: 2013 Cost of Data Breach StudySymantec
Symantec Corporation and Ponemon Institute are pleased to present the 2013 Cost of Data
Breach: Global Analysis, our eighth annual benchmark study concerning the cost of data breach
incidents for companies located nine countries. Since 2009, we have provided a consolidated
report of the benchmark findings from all countries represented in the research. In this report, we
present both the consolidated findings and country differences.
The state of privacy and data security complianceFindWhitePapers
With new privacy and data security regulations increasing, organizations are asking questions. Do the new regulations help or hinder the ability to protect sensitive and confidential information? With these new regulations on the march, how can you remain competitive in the global marketplace? This report provides answers and examines how compliance efforts can impact a company's bottom line.
2015 cost of data breach study global analysisxband
2015 Cost of Data Breach Study:
Global Analysis
By: Ponemon Institute
Benchmark research sponsored by IBM
Independently conducted by Ponemon Institute LLC
May 2015
ESG and Compliance: Where do we go from here?Nimonik
Environment, Social and Governance (ESG) issues are taking on more and more presence in the corporation's planning and strategy. This presentation discusses emerging trends, potential paths forward and challenges with staying in compliance to the myriad of ESG standards and requirements.
Discover the global landscape of enterprise security and intelligence adoption and learn important findings that can help you win the battles in the cyber-crime war. (3.0 MB)
Key Challenges Facing IT/OT: Hear From The ExpertsTripwire
When you think of Information Technology (IT) and Operational Technology (OT), which side are you on? You may not feel that you fall on any side of that technological skirmish, but when you stop to carefully consider the differences in these two disciplines, it is nearly impossible to avoid a tendentious leaning.
However, the time may be upon us when the conflicts of IT and OT will be put to rest for the broader purpose of making businesses more agile, efficient, resilient and ultimately, more profitable. We spoke with experts in the field who offered their insights about the challenges facing IT and OT convergence. Here’s what they shared!
As online sales surge, retail cybersecurity professionals are taking additional precautions to protect their organizations and their customers’ data. On top of this, the COVID-19 pandemic has driven even more consumers to turn to online shopping. Tripwire worked with Dimensional Research to better understand cybersecurity programs in the retail industry as they prepared for the holiday season.
Download the full report here: https://www.tripwire.com/solutions/solutions-by-industry/retail-and-hospitality/retail-holiday-cybersecurity-survey-report
Tripwire recently examined how organizations are experiencing the cybersecurity impacts of COVID-19 and shifts to working from home. Dimensional Research conducted the survey, which included responses from 345 IT security professionals, in April 2020. Check out some of the key findings from the survey.
Industrial Cybersecurity: Practical Tips for IT & OT CollaborationTripwire
How can IT and OT teams work together effectively to secure the entire infrastructure? We asked industry experts for their top tips. Read their full responses here: https://www.tripwire.com/state-of-security/ics-security/it-collaborate-ics-security/
Tripwire 2019 Skills Gap Survey: Key FindingsTripwire
The skills gap remains one of the biggest challenges for the cybersecurity industry. To gain more perspective on what organizations are experiencing, Tripwire partnered with Dimensional Research to survey 336 security professionals on this issue. For additional key findings, visit: https://www.tripwire.com/state-of-security/security-awareness/security-pros-skills-gap-worsened/
Time for Your Compliance Check-Up: How Mercy Health Uses Tripwire to Pass AuditsTripwire
Major healthcare providers are tasked with protecting patient data and maintaining complex security compliance requirements enforced through rigorous audits. Mercy Health, a major Midwestern hospital system, became a Tripwire customer in 2013. Using Tripwire technology, they created a successful IT service by integrating their ITSM tool, streamlining their reporting process and more.
Mercy Health and Tripwire show you how to:
-Implement effective change management
-Strengthen security in Epic records systems
-Streamline the audit process
Tripwire State of Cyber Hygiene 2018 Report: Key FindingsTripwire
Tripwire examined how organizations are implementing security controls that the Center for Internet Security (CIS) refers to as "Cyber Hygiene." The survey, conducted in July in partnership with Dimensional Research, included responses from 306 IT security professionals.
Read the full report here: https://www.tripwire.com/misc/state-of-cyber-hygiene-report-register/?referredby=socialmedia/
Defend Your Data Now with the MITRE ATT&CK FrameworkTripwire
MITRE is a not-for-profit organization that operates federally-funded research and development centers. Their ATT&CK framework is a useful cybersecurity model illustrating how adversaries behave and explaining the tactics you should use to mitigate risk and improve security. ATT&CK stands for “adversarial tactics, techniques and common knowledge.”
This presentation explores a methodology for pairing proven industry frameworks like MITRE ATT&CK with threat modeling practices to quickly detect and respond to cyber threats. With this approach, industrial organizations can slice their infrastructure into smaller components, making it easier to secure their assets and minimize the attack surface.
Takeaways include how to:
-Make the most out of their threat intelligence feeds
-Report on progress and compliance
-Negotiate trust relationships in the intelligence sharing cycle
-Improve their organization’s overall security posture
Defending Critical Infrastructure Against Cyber AttacksTripwire
In our increasingly connected world, networks of machines help critical infrastructure run more efficiently and prevent downtime. However, systems which were once isolated are now being exposed to digital security threats that operators never considered.
Joseph Blankenship of Forrester Research and Gabe Authier of Tripwire discuss the evolving threat landscape and how we can protect these critical assets from cyber threats.
Topics covered include:
-Examples of some of the most recent cyber-attacks to critical infrastructure
-Why traditional IT security approaches won't work
-Recommended approaches for securing critical infrastructure
Recruiting in the Digital Age: A Social Media MasterclassLuanWise
In this masterclass, presented at the Global HR Summit on 5th June 2024, Luan Wise explored the essential features of social media platforms that support talent acquisition, including LinkedIn, Facebook, Instagram, X (formerly Twitter) and TikTok.
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Implicitly or explicitly all competing businesses employ a strategy to select a mix
of marketing resources. Formulating such competitive strategies fundamentally
involves recognizing relationships between elements of the marketing mix (e.g.,
price and product quality), as well as assessing competitive and market conditions
(i.e., industry structure in the language of economics).
Putting the SPARK into Virtual Training.pptxCynthia Clay
This 60-minute webinar, sponsored by Adobe, was delivered for the Training Mag Network. It explored the five elements of SPARK: Storytelling, Purpose, Action, Relationships, and Kudos. Knowing how to tell a well-structured story is key to building long-term memory. Stating a clear purpose that doesn't take away from the discovery learning process is critical. Ensuring that people move from theory to practical application is imperative. Creating strong social learning is the key to commitment and engagement. Validating and affirming participants' comments is the way to create a positive learning environment.
[Note: This is a partial preview. To download this presentation, visit:
https://www.oeconsulting.com.sg/training-presentations]
Sustainability has become an increasingly critical topic as the world recognizes the need to protect our planet and its resources for future generations. Sustainability means meeting our current needs without compromising the ability of future generations to meet theirs. It involves long-term planning and consideration of the consequences of our actions. The goal is to create strategies that ensure the long-term viability of People, Planet, and Profit.
Leading companies such as Nike, Toyota, and Siemens are prioritizing sustainable innovation in their business models, setting an example for others to follow. In this Sustainability training presentation, you will learn key concepts, principles, and practices of sustainability applicable across industries. This training aims to create awareness and educate employees, senior executives, consultants, and other key stakeholders, including investors, policymakers, and supply chain partners, on the importance and implementation of sustainability.
LEARNING OBJECTIVES
1. Develop a comprehensive understanding of the fundamental principles and concepts that form the foundation of sustainability within corporate environments.
2. Explore the sustainability implementation model, focusing on effective measures and reporting strategies to track and communicate sustainability efforts.
3. Identify and define best practices and critical success factors essential for achieving sustainability goals within organizations.
CONTENTS
1. Introduction and Key Concepts of Sustainability
2. Principles and Practices of Sustainability
3. Measures and Reporting in Sustainability
4. Sustainability Implementation & Best Practices
To download the complete presentation, visit: https://www.oeconsulting.com.sg/training-presentations
The world of search engine optimization (SEO) is buzzing with discussions after Google confirmed that around 2,500 leaked internal documents related to its Search feature are indeed authentic. The revelation has sparked significant concerns within the SEO community. The leaked documents were initially reported by SEO experts Rand Fishkin and Mike King, igniting widespread analysis and discourse. For More Info:- https://news.arihantwebtech.com/search-disrupted-googles-leaked-documents-rock-the-seo-world/
Understanding User Needs and Satisfying ThemAggregage
https://www.productmanagementtoday.com/frs/26903918/understanding-user-needs-and-satisfying-them
We know we want to create products which our customers find to be valuable. Whether we label it as customer-centric or product-led depends on how long we've been doing product management. There are three challenges we face when doing this. The obvious challenge is figuring out what our users need; the non-obvious challenges are in creating a shared understanding of those needs and in sensing if what we're doing is meeting those needs.
In this webinar, we won't focus on the research methods for discovering user-needs. We will focus on synthesis of the needs we discover, communication and alignment tools, and how we operationalize addressing those needs.
Industry expert Scott Sehlhorst will:
• Introduce a taxonomy for user goals with real world examples
• Present the Onion Diagram, a tool for contextualizing task-level goals
• Illustrate how customer journey maps capture activity-level and task-level goals
• Demonstrate the best approach to selection and prioritization of user-goals to address
• Highlight the crucial benchmarks, observable changes, in ensuring fulfillment of customer needs
Personal Brand Statement:
As an Army veteran dedicated to lifelong learning, I bring a disciplined, strategic mindset to my pursuits. I am constantly expanding my knowledge to innovate and lead effectively. My journey is driven by a commitment to excellence, and to make a meaningful impact in the world.
1. A Benchmark Study of Multinational Organizations
Research Report
Independently Conducted by Ponemon Institute LLC
January 2011
The True Cost of Compliance | Benchmark Study of Multinational Organizations | Ponemon Institute | January 2011 01
3. FINDINGS OF OUR BENCHMARK RESEARCH
THE COST OF NON-COMPLIANCE CAN BE MORE EXPENSIVE THAN INVESTING IN COMPLIANCE ACTIVITIES
The extrapolated average cost of compliance for 46 organizations Business disruption and productivity losses are the most expensive
in our study is more than $3.5 million, with a range of $446,000 to consequences of non-compliance. The least expensive consequences
over $16 million. Adjusting total cost by organizational headcount are fines, penalties and other settlement costs.
(size) yields a per capita compliance cost of $222 per employee.
On average, non-compliance cost is 2.65 times the cost of
The extrapolated average cost of non-compliance for 46 compliance for the 46 organizations. With the exception of
organizations is nearly $9.4 million, with a range of $1.4 million to two cases, non-compliance cost exceeded compliance cost.
nearly $28 million. Adjusting total cost by organizational headcount
(size) yields a per capita non-compliance cost of $820 per employee. All organizations in the study experienced both compliance and
non-compliance costs. However the study strongly suggests that
Data protection and enforcement activities are the most costly organizations that invest more in compliance enjoy lower non-
compliance activities. In terms of the direct expense categories, compliance costs by avoiding many of the negative consequences
data protection technologies and incident management top the list. of non-compliance. However, given that non-compliance costs
The lowest compliance cost activities concern policy development cannot be avoided entirely, there is obviously some point after
and communications. In terms of direct expense categories, which further investment in compliance fails to yield a
staff certification and redress are the lowest. reduction in non-compliance costs.
INDUSTRY AND ORGANIZATIONAL SIZE AFFECT THE COST OF COMPLIANCE AND NON-COMPLIANCE
Results show that the total cost of compliance varies significantly or fewer employees) as incurring substantially higher
by the organization’s industry segment, with a range of $6.8 million per capita compliance costs than larger-sized companies
for education and research to more than $24 million for energy. (more than 5,000 employees).
The difference between compliance and non-compliance cost also
varies by industry. Energy shows the smallest difference at $2 million, While the study found that the cost of compliance is affected by
and technology shows the largest difference at $9.4 million. organizational size, it is also affected by the number of regulations
and the amount of sensitive or confidential information an
When adjusting compliance and non-compliance costs by each organization is required to safeguard.
organization’s headcount, we see smaller-sized companies (5,000
THE GAP BETWEEN COMPLIANCE AND NON-COMPLIANCE COST IS RELATED
TO NUMBER OF RECORDS LOST OR STOLEN IN DATA BREACHES
We tested the premise that increasing the amount of compliance it is important to note that when an organization spends less
spending offsets the cost of non-compliance. Our findings show a on compliance costs, this also increases the size of the gap.
positive correlation between the percentage difference between
compliance and non-compliance costs and the number of lost Almost all of the organizations in the study experienced a
or stolen records during a 12-month period. In other words, the data breach, with the resulting number of records compromised
smaller the gap between compliance and non-compliance costs, varying widely. For compliance spending to result in strong data
the fewer compromised records. protection and minimize data breaches, organizations must invest
in compliance wisely. As we show in the discussion of the next
The size of the gap can be explained in a couple of ways. First, finding, compliance investments that improve security effectiveness
when a data breach occurs, non-compliance costs will rise. However, rather than simply meeting audit requirements can result in
more effective data protection.
The True Cost of Compliance | Benchmark Study of Multinational Organizations | Ponemon Institute | January 2011 03
4. THE MORE EFFECTIVE AN ORGANIZATION’S SECURITY STRATEGY IS, THE LOWER THE COST OF NON-COMPLIANCE
We used a well-known indexing method called the security lower non-compliance costs. These findings suggest that
effectiveness score (SES)1 to assess an organization’s security posture. improving security does indeed lower the costs of non-compliance.
The methodology, which has been developed over the last five years
and used in numerous Ponemon Institute studies, measures each A related finding showed that per capita non-compliance cost
organization’s security posture against 25 security best practices. is inversely related to the percentage of compliance spending
in relation to the total IT budget. In other words, the more an
We determined that the SES is unrelated to compliance cost. organization spent on the consequences of non-compliance, the
However, the SES appears to be inversely related to non- smaller the amount of the IT budget the organization had allocated
compliance cost. In other words, an organization with a to compliance costs. Clearly, when an organization spends a
higher SES, or a better security posture, will experience higher percentage of the IT budget on compliance, it reduces the
negative consequences and cost of non-compliance.
ONGOING INTERNAL COMPLIANCE AUDITS REDUCE THE TOTAL COST OF COMPLIANCE
Per capita non-compliance cost—the non-compliance cost adjusted The study indicates that those organizations that conduct more
for organization size as determined by headcount—appears to be internal audits can more effectively manage their compliance burden.
inversely related to the frequency of internal compliance audits. This in turn could reduce the costs of non-compliance. In addition,
That is, the more internal audits an organization conducts, the organizations that embrace a culture of compliance most likely are
lower its non-compliance cost. In comparison, organizations that also more security and privacy conscious.
do not conduct internal compliance audits experience the highest
compliance cost when adjusted for size.
LAWS AND REGULATIONS ARE THE MAIN DRIVERS FOR INVESTMENT IN COMPLIANCE ACTIVITIES
Finally, results suggest that compliance with laws and regulations In particular, the greatest number of organizations in the
(external focus) appears to be the most important mission study identified PCI DSS as the most important and most difficult
of compliance efforts. Regulations that are a priority include regulation with which to comply. This finding may be due partially
the Payment Card Industry Data Security Standard (PCI DSS), to two facts: Almost every organization has some component of
various state privacy and data protection laws (such as MA cardholder data in their organization, and PCI DSS requirements
201 in Massachusetts), the European Union Privacy Directive, are among the most prescriptive.
and Sarbanes-Oxley. Organizations are investing in specialized
technologies to protect their data, such as file integrity monitoring,
security information and event management, access management,
data loss prevention, and encryption.
1
The Ponemon Institute initially developed the Security Effectiveness Score (SES) in its 2005 Encryption Trends Study. The purpose of the SES is to define the security posture of
responding organizations. The SES is derived from the rating of 25 leading information security and data protection practices. This indexing method has been validated by more than 30
independent studies conducted since June 2005. The SES provides a range of +2 (most favorable) to -2 (least favorable). An index value above zero is net favorable.
04 The True Cost of Compliance | Benchmark Study of Multinational Organizations | Ponemon Institute | January 2011
6. Figure 2: Percentage Cost Structure for Compliance Costs
40% Direct Cost
60% Indirect Cost
100%
Figure 2 reports the cost structure on a percentage basis for all data compliance cost activities combined. The figure shows that indirect
costs such as administrative overhead account for 60 percent of compliance cost activities. Direct costs such as payments to consultants,
auditors or other outside experts account for 40 percent.
Table 1: Key statistics on the cost of compliance for six activity centers (USD)
Activity centers Total Average Median Maximum Minimum
Policy 13,703,854 297,910 148,675 1,686,805 13,796
Communications 15,783,469 343,119 166,363 2,009,736 13,732
Program management 20,325,527 441,859 246,576 2,168,351 48,628
Data security* 47,570,815 1,034,148 793,352 3,753,816 135,685
Compliance monitoring 29,280,953 636,542 326,181 3,186,971 32,872
Enforcement 35,695,589 775,991 266,753 4,488,671 31,731
Total 162,360,207 3,529,570 2,023,111 16,049,151 445,697
*Sixty-four percent of this center pertains to the direct and indirect costs associated with enabling security technologies.
Table 1 summarizes the total, average, median, maximum and minimum compliance costs for a 12-month period for the six activity
centers defined in our cost framework in Part IV. These activity centers include people, processes and technology. Data security
represents the largest cost center for the benchmark sample, while policy represents the smallest.
06 The True Cost of Compliance | Benchmark Study of Multinational Organizations | Ponemon Institute | January 2011
22. IV
COST FRAMEWORK
Our primary method for determining the total cost of compliance In addition to the above internal activities, most companies
relies on the objective collection of cost data. Using a well-known incur tangible costs and opportunity losses as a result of
cost accounting method, we were able to segment detailed cost non-compliance with data protection requirements and laws.
data into discernible activity centers that explain the entire An example of a non-compliance event includes end-user
data protection and compliance mandate within benchmarked violations of company policies such as the misuse of Internet
companies.3 We determined that the following six cost activity applications or use of insecure devices in the workplace. Other
centers span the full economic impact of compliance costs examples include contractual violations with vendors or business
associated with protecting data. Within each center we compile partners, organizational changes imposed by regulators, data
the direct and indirect costs associated with each activity. loss incidents, theft of intellectual properties and many others.
Our total compliance cost framework includes the four broadly
Compliance policies: Activities associated with the creation and defined consequences of non-compliance as follows:
dissemination of policies related to the protection of confidential
or sensitive information such as customer data, employee records, Business disruption: The total economic loss that results from
financial information, intellectual properties and others. non-compliance events or incidents such as the cancellation
of contracts, business process changes imposed by regulators,
Communications: Activities and associated costs that enable shutdowns of business operations and others.
a company to train or create awareness of the organization’s
policies and related procedures for protecting sensitive or Productivity loss: The time for accomplishing work-related
confidential information. This activity includes all downstream responsibilities that employees lose (and related expenses)
communications to employees, temporary employees, contractors because the systems and other critical processes they rely
and business partners. It also includes the required notifications on experience downtime.
about policy changes and data breach incidents.
Lost revenues: The loss in revenue sustained as a result of
Program management: Activities and associated costs non-compliance with data protection requirements and laws.
related to the coordination and governance of all program This includes customer turnover and diminished loyalty due
activities within the enterprise, including direct and indirect to lost trust and confidence in the organization.
costs related to privacy and IT compliance.
Fines, penalties and other settlement costs: The total fines,
Data security: All activities and technologies used by the penalties and other legal or non-legal settlements associated with
organization to protect information assets. Activities include data protection non-compliance issues. This includes expenditures
professional security staffing, implementation of control for engaging legal defense and other experts to help resolve issues
systems, backup and disaster recovery operations and others. associated with compliance infractions and data breaches.
Compliance monitoring: All activities deployed by the
organization to assess or appraise compliance with external,
internal and contractual obligations. It includes costs associated
with internal audits, third-party audits, technology, verification
programs, professional audit staffing and others.
Enforcement: Activities related to detecting non-
compliance, including incident response. These activities
also include redress activities such as hotlines, remedial
training of employees who violate compliance requirements,
and voluntary self-reporting to regulators.
3
Ponemon Institute’s cost of data breach studies conducted over the past six years utilizes activity-based cost to define the total economic
impact of data loss or theft that requires notification. See, for example, 2009 Cost of Data Breach, Ponemon Institute January 2010.
22 The True Cost of Compliance | Benchmark Study of Multinational Organizations | Ponemon Institute | January 2011
23. Total Compliance Cost Framework
Figure 30: Total Compliance Cost Framework
Compliance Cost Non-Compliance Cost
Policy Business Disruption
Communications Productivity Loss
Activity-based
Costing Model
Program Management Revenue Loss
Data Security Fines & Penalties
Compliance Monitoring
Direct Costs
Indirect Costs
Enforcement
Opportunity Costs
Figure 30 presents the activity-based costing framework used in this research. The framework consists of six cost center activities denoted
as “compliance costs,” and four cost consequences denoted as “non-compliance costs.” As shown, the six compliance costs are policy,
communications, program management, data security, compliance monitoring and enforcement.
Each of these activities generates direct, indirect and opportunity costs. The consequences for failing to comply with data compliance
requirements include business disruption, productivity losses, and revenue losses, as well as fines, penalties and other cash outlays.
In the study, we used two sets of costs for each benchmarked organization, which combined make up the total cost of compliance.
The True Cost of Compliance | Benchmark Study of Multinational Organizations | Ponemon Institute | January 2011 23
24. V
BENCHMARK METHODS
To obtain information about each organization’s total compliance Our benchmark instrument was designed to collect descriptive
cost, the researchers utilized an activity-based costing method information from individuals who are responsible for data
and a proprietary diagnostic interviewing technique. Following protection efforts within their organizations. The research design
are the approximate titles of the 160 functional leaders from relies upon a shadow costing method used in applied economic
the benchmarked organizations that participated in our study: research. This method does not require subjects to provide actual
accounting results, but instead relies on broad estimates based on
- Chief Information Officer the experience of individuals within participating organizations.
- Chief Information Security Officer Hence, the costs we extrapolated are those incurred directly or
- Chief Compliance Officer indirectly by each organization as a result of their efforts to
- Chief Financial Officer achieve compliance with a plethora of data protection requirements.
- Chief Privacy Officer Our methods also permitted us to collect information about the
- Internal Audit Director economic consequences of non-compliance.
- IT Compliance Leader
- IT Operations Leader The benchmark framework in Figure 1 presents the two separate
- Human Resource Leader cost streams used to measure the total cost of compliance for each
- Data Center Management participating organization. These two cost streams pertain to cost
center activities and consequences experienced by organizations
The benchmark instrument contains a descriptive cost for each one of during or after a non-compliance event. Our benchmark instrument
the six cost activity centers. Within each activity center, the survey also contained questions designed to elicit the actual experiences
requires respondents to specify a cost range that estimates direct and consequences of each incident. This cost study is unique in
cost, indirect cost and opportunity cost, which are defined as follows: addressing the core systems and business activities that drive a
range of expenditures associated with a company’s efforts to
Direct cost – the direct expense outlay to comply with known requirements.
accomplish a given activity.
Within each category, cost estimation is a two-stage process.
Indirect cost – the amount of time, effort and other First, the survey requires individuals to provide direct cost
organizational resources spent, but not as a direct cash outlay. estimates for each cost category by checking a range variable.
A range variable is used instead of a point estimate to preserve
Opportunity cost – the cost resulting from lost business confidentiality (in order to ensure a higher response rate).
opportunities as a result of compliance infractions that Next, the survey requires participants to provide a second
diminish the organization’s reputation and goodwill. estimate that indicates indirect cost and separately, opportunity
cost. These estimates are calculated based on the magnitude
Our research methods captured information about all of these costs relative to a direct cost within a given category.
costs grouped into six core compliance activities: Finally, we conducted a follow-up interview to validate the cost
estimates provided by the respondents, and when necessary,
- Policy development and upstream communication to resolve potential discrepancies).
- Training, awareness and downstream communication
- Data protection program activities
- Data security practices and controls
- Compliance monitoring
- Enforcement
24 The True Cost of Compliance | Benchmark Study of Multinational Organizations | Ponemon Institute | January 2011
25. The size and scope of survey items is limited to known cost The study was launched in November, 2010 and fieldwork
categories that cut across different industry sectors. In our concluded in January, 2011. The recruitment started with a
experience, a survey that focuses on process yields a higher personalized letter and a follow-up phone call to 209 organizations
response rate and higher quality results. We also use a paper for possible participation in our study. While 69 organizations
instrument, rather than an electronic survey, to provide initially agreed to participate, 46 organizations permitted
greater assurances of confidentiality. researchers to complete the benchmark analysis.
To maintain complete confidentiality, the survey instrument does The time period used in the analysis of compliance costs was
not capture company-specific information of any kind. Research 12 months. Because we collected information only during this
materials do not contain tracking codes or other methods that continuous 12-month time frame, the study cannot gauge
could link responses to participating companies. seasonal variation on specific cost categories.
To keep the benchmark instrument to a manageable size, we
carefully limited items to only those cost activities we consider
crucial to the measurement of data protection compliance costs
rather than all IT compliance costs. Based on discussions with
subject matter experts, the final set of items focus on a finite set
of direct and indirect cost activities. After collecting benchmark
information, each instrument is examined carefully for consistency
and completeness. In this study, two companies were rejected
because of incomplete, inconsistent or blank responses.
The True Cost of Compliance | Benchmark Study of Multinational Organizations | Ponemon Institute | January 2011 25
26. VI
CONCLUSION
To reduce the total cost of compliance and offset the risk of compliance goals. Table 4 reports the ten attributes from the
non-compliance, security strategies should integrate enabling security effectiveness score instrument that have the highest
technologies with people, policies and operational processes. inverse correlation with non-compliance cost (as computed from
The following attributes are most strongly correlated with creating the 46 benchmark companies). In other words, these 10 attributes
an effective security posture while meeting an organization’s lend the greatest support to a strong compliance culture.
Table 4: Security effectiveness attributes with the highest negative correlation to non-compliance cost
Security effectiveness scoring attributions Correlation*
Monitor and strictly enforce security policies -0.34
Conduct audits or assessments on an ongoing basis -0.32
Attract and retain professional security personnel -0.31
Ensure minimal downtime or disruptions to systems resulting from security issues -0.30
Prevent or curtail viruses, malware and spyware infections -0.29
Measure the effectiveness of security program components -0.28
Ensure security program is consistently managed -0.27
Know where sensitive or confidential information is physically located -0.26
Secure endpoints to the network -0.25
Identify and authenticate end-users before granting access to confidential information -0.23
*Non-parametric correlation method utilized because of small sample size
Many of the 10 security effectiveness attributes pertain to Achieving critical and complex goals related to
governance and oversight of the organization’s security initiatives. compliance requires holistic and integrated security solutions
Organizations can adopt the following steps to achieve a governance that seamlessly address every area of the organization that
infrastructure that supports compliance across the enterprise: compliance impacts. Recent benchmark research conducted by
Ponemon Institute provides insights from information security
- Appoint a high-level individual to lead activities around leaders on how to build an integrated and holistic security strategy.
compliance with data protection laws and requirements
Today’s security initiatives require organizations to anticipate
- Ensure board-level oversight of compliance activities how changing threats will affect their organization’s ability to
(through the board’s audit committee) comply with external, internal and contractual demands. We have
identified four primary security areas that affect all organizations:
- Ensure the budget for compliance is adequate external and internal threats to security, the changing workforce,
to meet specific goals and objectives changing business models and processes, and the changing world.
Understanding the implications of these security challenges can
- Establish a cross-functional steering committee help organizations succeed in aligning their core practices and
to oversee local compliance requirements technologies across the enterprise in ways that minimize the
risk of compliance failure. Organizations can respond to
- Implement metrics that define compliance program success these individual security challenges in the following ways:
- Ensure senior executives receive critical reports
when compliance issues reach crisis levels
26 The True Cost of Compliance | Benchmark Study of Multinational Organizations | Ponemon Institute | January 2011
27. CAVEATS
- Changing threats require an organization to make security This study utilizes a confidential and proprietary benchmark method
an integral part of its culture; keep pace with technological that has been successfully deployed in earlier Ponemon Institute
advances; build security into business processes to reduce research. However, there are inherent limitations to benchmark
compliance risks; understand the latest threats; and research that need to be carefully considered before drawing
actively assess the insider threat. conclusions from findings.
- The changing workforce requires organizations to make sure Non-statistical results: The purpose of this study is descriptive
security keeps pace with organizational restructuring and change; rather than normative inference. The current study draws upon a
audit, grant or withdraw access rights to property and systems; representative, non-statistical sample of data centers, all located
have adequate screening procedures for new employees; and in the United States. Statistical inferences, margins of error and
determine if remote workers are securely accessing the network. confidence intervals cannot be applied to these data given the
nature of our sampling plan.
- Business changes require organizations to secure business
processes during periods of transition; understand operational Non-response: The current findings are based on a small
dependencies; verify that business partners have sufficient representative sample of completed case studies. An initial
security practices in place; secure the transfer of information mailing of benchmark surveys was sent to a reference group of
assets between different organizations; and review, audit, and over 200 separate organizations. Forty-six organizations provided
when necessary, revoke access rights. usable benchmark surveys. Non-response bias was not tested
so it is always possible companies that did not participate are
- Finally, a quickly changing environment requires organizations substantially different in terms of the methods used to manage
to have the technologies and plans in place to deal with the detection, containment and recovery process, as well as
attacks upon the critical infrastructure, theft of information the underlying costs involved.
assets, and other criminal incidents.
Sampling-frame bias: Because our sampling frame is judgmental,
- The implications for an organization that does not manage the quality of results is influenced by the degree to which the
compliance risks with the right integrated and holistic response frame is representative of the population of companies being
to data security and related compliance challenges are a decrease studied. It is our belief that the current sampling frame is biased
in revenue that results from both the loss of customer trust and toward companies with more mature compliance programs.
loyalty and the inability to deliver services and products.
Company-specific information: The benchmark information
- Beyond the economic impact, non-compliance increases the is sensitive and confidential. Thus, the current instrument
risk of losing valuable information assets such as intellectual does not capture company-identifying information. It also allows
property, physical property and customer data. Further, non- individuals to use categorical response variables to disclose
compliant organizations risk becoming victims of cyber fraud, demographic information about the company and industry
business disruption, and many other consequences that might category. Industry classification relies on self-reported results.
lead to business failure.
Unmeasured factors: To keep the survey concise and focused,
We believe our study demonstrates that an investment in we decided to omit other important variables from our analyses
both external and internal compliance activities is beneficial such as leading trends and organizational characteristics.
not only to an organization’s security stature, but also to its The extent to which omitted variables might explain
overall operations. We have shown that while organizations will benchmark results cannot be estimated at this time.
incur both compliance and non-compliance costs, proactively
investing in compliance activities can potentially help organizations Estimated cost results: The quality of survey research is
reduce the risk created by the consequences and reactive spending based on the integrity of confidential responses received from
of non-compliance. In addition, employing the above practices can benchmarked organizations. While certain checks and balances
allow organizations to experience greater compliance gains for a can be incorporated into the data capture process, there is
given level of investment. Further, the results of this study will always the possibility that respondents did not provide truthful
help corporate IT and lines of business demonstrate the value responses. In addition, the use of a cost estimation technique
of investing in their compliance activities. (termed shadow costing methods) rather than actual cost
data could create significant bias in presented results.
4
Non-parametric correlation method utilized because of small sample size
The True Cost of Compliance | Benchmark Study of Multinational Organizations | Ponemon Institute | January 2011 27