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Risk management firm pegs cost of a data breach at $7m

The average data breach costs the victim a cumulative $7 million (£4.7 million), according to a new estimate from a risk management firm.

Using data from both internal and external sources, Aon attempted to count the full spectrum of expenses that follow a data security incident, ranging from data recovery to income lost over brand damage.

It found that five per cent of cyber attacks cost more than $20 million, constituting the ‘mega breaches’ that attract the most media attention, the San Francisco Business Times reports.

A further 15 per cent of incidents incur expenses of between $1 million and $20 million, while the remaining 80 per cent land their victims bills of up to $1 million.

Aon also found that in cases where the affected companies had cyber risk insurance, the average payout was just $3 million – $4 million below the average cost of a data breach.

Commenting on the figures, Kevin Kalinich – a global practice leader for the firm – said businesses need to make managing data security and cyber risk “part of their culture”.

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From:: http://www.krollontrack.co.uk/company/press-room/data-recovery-news/risk-management-firm-pegs-cost-of-a-data-breach-at-$7m429.aspx

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