Data breaches happen more frequently in today’s business landscape—and they’re expensive. 30% of major security incidents result in damages between $100,000 to $500,000 according to the 2020 Insider Threat Report from Cybersecurity Insiders. Business email compromise scams alone have results in over 166,000 incidents around the world and $26 billion in loss since 2013, according to the 2020 Trustwave Global Security Report.
Recovery costs can exceed estimates very quickly. Information security should be considered a high-level risk because of its financial implications; it can directly affect an organization’s bottom line.
Beyond direct financial loss, other potential financial consequences include:
Reputation damage
Intellectual property theft
Regulatory fines
Cybersecurity insurance may be able to help you recoup direct financial loss, but it won’t protect against intellectual property losses or a hit to your organization’s reputation.