IBM has issued a report that examines the financial impact of the hazards that are most feared by businesses which rely on the modern computer systems that are data breaches.
The report on data breaches’ costs in 2019 was sponsored by the IBM Security and was researched by the Ponemon Institute. Ponemon contacted 507 companies across the world which sustained data breaches from July 2018 to April 2019 and also conducted about 3,211 separate interviews. Data breaches that were ranging from a low of two thousand compromised records to almost over one thousand records.
Various factors were also examined like the legal, regulatory as well as technical costs, the loss of brand equity, the customer turnover and also the drain on productivity of the employee. The study further examined both the accidental breaches and the deliberate actions for instance hacking.
The report showed that average data breach had involved about 25,575 computer records. It also found that it took a firm or company on average about 279 days for realizing that their data had either been hacked or else compromised and then take the appropriate action to deal with the breach. Each of the affected computer record would cost the companies an average of 150 dollars.
The United States had the greatest average cost of the data breach per company worth 8.19 million dollar, as compared to the average global cost per company which was almost 3.92 million dollar. The industry of health care had the greatest cost among all industries at 6.45 million dollar per data breach, almost sixty percent higher than that of the average of other industries. 17 industries had been examined, including communication, transportation, pharmaceuticals as well as hospitality. When the IBM started reporting the costs of the data breaches in the year 2006, the average impact calculated on a United States business was 3.54 million dollar.