Alongside recent research from Ponemon Institute stating that the cost of a data breach is rising, acquiring the right protection is paramount.
Companies would do well to ensure their business insurance package meets the needs of running an organisation amidst modern security risks.
ACSC releases first unclassified threat report
According to the analysis, The Australian Cyber Security Centre Threat Report 2015, it is imperative that organisations across the country invest in cybersecurity measures. It notes the potential costs of an attack, including:
- Financial losses
- Harm to your business’ reputation
- Compromised intellectual property
- Business interruption
The report urges companies to implement means to reduce the likelihood of these events, such as business interruption insurance. Not only can this ensure financial losses are minimal, it can also increase the confidence of customers when using online services.
There are many benefits of the internet for businesses, and they should be realised. Nevertheless, the ACSC notes that cybersecurity threats to Australian organisations are increasing.
“Due to the varied nature of motivations for cyber adversaries targeting Australian organisations, organisations could be a target for malicious activities even if they do not think the information held on their networks is valuable, or that their business would be of interest to cyber adversaries,” states the ACSC in the threat report.
What is the global cost of a cybersecurity breach?
“The financial consequences of losing customers in the aftermath of a breach are having a greater impact on the cost.”
Ponemon Institute releases an annual report, sponsored by IBM, outlining the financial cost of data breaches.
The study, Cost of Data Breach Study: Global Analysis, surveyed 350 companies worldwide. It estimates that the average cost of a cybersecurity breach is US$3.8 million. This a 23 per cent increase from a similar study in 2013.
Ponemon Institute Chairman and Founder Dr Larry Ponemon identified three key reasons why the cost is continuing to rise.
“First, cyberattacks are increasing both in frequency and the cost it requires to resolve these security incidents,” says Dr Ponemon.
“Second, the financial consequences of losing customers in the aftermath of a breach are having a greater impact on the cost. Third, more companies are incurring higher costs in their forensic and investigative activities, assessments and crisis team management.”
The importance of cyber insurance
As online services become more essential to organisations, so does ensuring they are sufficiently protected. Incorporating cybersecurity as part of your business insurance package can help minimise the financial implications of a data breach.
Furthermore, business interruption cover can act as a means to keep your company afloat in the aftermath of a security breach. For information on how your company can acquire the right business insurance, contact the brokers at MGA Insurance.