On average, a single cybersecurity incident now costs large businesses $861,000. Meanwhile, small and medium businesses (SMB) end up paying $86,500. Most alarmingly, the cost of recovery significantly increases depending on the time of discovery.
SMBs tend to pay 44% more to recover from an attack discovered a week or more after the initial breach, compared to attacks spotted within one day. Enterprises pay a 27% premium in the same circumstances.
These are the main findings of Kaspersky Lab’s report “Measuring the Financial Impact of IT Security on Businesses” based on the 2016 Corporate IT Security Risks survey.
Budget increases address complexity
In the 2016 survey, Kaspersky Lab for the first time compared an organization’s security budget to losses incurred from serious incidents. Overall, businesses expect IT Security budgets to grow at least 14% over the next three years, due to the increased complexity of IT infrastructure.
A typical small business currently spends 18% of their total IT budget on security, whereas enterprises allocate 21%. The research shows a significant disparity between businesses of differing sizes, with annual security budget varying from just $1,000 for very small businesses to more than one million US dollars for large companies.
Cost of recovery: employee overtime and more
To estimate the total cost of recovery, Kaspersky Lab and B2B International asked businesses to report their losses from the most serious security incident in different categories.
Although the most frequent cost is for additional staff wages, businesses reported significant spending due to lost business opportunities, improvement in IT security, employing external specialists and hiring new staff.
Enterprises spend $79K on training and $85K on requesting help from external experts –19% of the total loss.
Talking about ROI
“Based on our worldwide survey, the average IT Security budget is ‘worth’ just 2.5 cyberattacks once all direct and indirect losses are taking into account. With thousands of threats attacking corporate world every day, an efficient cybersecurity definitely pays off. Businesses understand the threat clearly; 59% of SMBs and 62% of enterprises say they will improve their security regardless of an ability to measure return,” comments Vladimir Zapolyansky, Head of SMB Marketing, Kaspersky Lab.
“However, the survey proves that reaction time post-breach has a direct impact on financial losses. This is something that cannot be remedied via budget increases. It requires talent, intelligence and an agile attitude towards protecting one’s business. As a security vendor, our goal is to provide tools and intelligence for businesses of all sizes, keeping in mind the difference in ability to allocate security budgets,” adds Zapolyansky.
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Hi there! I know this is somewhat off topic but I was wondering which blog platform are you using for this website? I’m getting fed up of WordPress because I’ve had problems with hackers and I’m looking at alternatives for another platform. I would be great if you could point me in the direction of a good platform.
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With havin so much written content do you ever run into any issues of plagorism or copyright infringement? My website has a lot of exclusive content I’ve either written myself or outsourced but it looks like a lot of it is popping it up all over the web without my authorization. Do you know any solutions to help stop content from being ripped off? I’d really appreciate it.
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Hey! Quick question that’s completely off topic. Do you know how to make your site mobile friendly? My blog looks weird when browsing from my iphone 4. I’m trying to find a theme or plugin that might be able to resolve this issue. If you have any recommendations, please share. Many thanks!
Howdy are using WordPress for your blog platform? I’m new to the blog world but I’m trying to get started and create my own. Do you need any coding knowledge to make your own blog? Any help would be greatly appreciated!
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