6 Indirect Costs of a Data Breach
People always want to pick my brain about cyber attacks. It’s kind of like being the IT guy in the family, “Can you look at my laptop? It runs slow.”
Imagine that guy’s Thanksgiving. Cringe.
But that’s the world we live now. Every day, sadly, there’s another headline in the news with a big name next to it.
Target data breach.
Home Depot data breach.
Verizon data breach.
In fact, due to the notoriety of the victims, some business owners now think, “No one will hack me. I’m not big enough.”
Big names sell newspapers and get clicks, shares, Likes, and comments. Little names don’t have a Cyber Protection Plan in place and possess the same data like employee information, customer information, and financial records.
Another misconception is that business owners can afford or manage a data breach. This is not a misconception like the NY Jets are in the NFC. It’s whether or not you will be able to stay in business.
60% of all SMB that experience a data breach close their doors for good within 6 months.
How could a business owner discount or miscalculate this damage? It’s actually pretty easy. Because, like an iceberg, the biggest part lies below the surface.
These are the 6 indirect costs of a data breach:
1) Increased Cost to Raise Debt
2) Impact of Operational Disruption or Destruction
3) Lost Value of Customer Relationships
4) Value of Lost Contract Revenue
5) Devaluation of Trade Name
6) Loss of Intellectual Property
A data beach can’t be prevented. It can only be mitigated.
If you’re the captain of your ship it’s you’re job to steer clear of the ice bergs in the sea. Or recruit someone to help you.
You need to recognize what is at risk. Then you need to learn how breaches occur.
This information will educate you enough to get enough Cyber liability insurance for your business and allow you to build the best pre and post breach response strategy.
Otherwise you could have a Titanic problem.