Venyu Blog

Writing in his Compliance Helper Blog, Jack Anderson reflects on the recently released report compiled by the Ponemon Institute that found the average global total cost of each data breach in 2009 was $3.43 million, with an average cost of $142 per affected record. In the United States alone those figures jumped to an astounding $6.75 million total cost per breach, with an average cost of $204 per affected record.

While taking a snapshot of the cost of data loss on a global basis is part and parcel of many bloggers once research along these lines is published, what typically isn’t taken into account are the otherwise “soft” costs associated with these data losses. As Anderson writes, “In a wakeup call to companies, on average 44% of incurred data loss expenses related to lost business. When customers learn of data breaches, they evidently take their business elsewhere.” To support this hypothesis the Ponemon report found that with respect to the percentage of data loss expenses relating to lost business, the global numbers come in at just around 33-35% for Australia, France and Germany; 46% for the United Kingdom and at a staggering 66% for the United States.

What’s painfully clear about these findings is that even as companies deploy increasingly leading-edge security measures as ramparts against opportunistic hackers, ultimately it’s not just about preventing data leaks. Sometimes it’s a bit more; like preserving their reputation and saving their business.