Cybersecurity incidents can lead to costly downtime!
If a hacker caused your business to shut down for 48 hours, how much money would you lose?
It’s likely a lot more than you think.
The costs associated with a cybersecurity incident leading to downtime can be multifaceted and impact several aspects of a business. Estimating these costs involves considering both direct and indirect expenses.
While it’s uncomfortable to face the financial facts, it’s an essential exercise: confronting the reality of the impact of cybersecurity incidents will allow you better insight into how to protect what’s important. You’ll also be able to work with your team to establish reasonable budgets, policies, and backup plans.
Here’s where some of the costs of network downtime can mount to—and what you can do to limit them in case of a disaster.
1. Lost Revenue
Consider the average and estimated income your business would generate if operations were normal. If you were compromised completely, how much revenue would you miss out on per hour? What about per day? How much would 48 hours really set you back?
2. Cost of Recovery
Your cost of recovery will involve expenses related to identifying and fixing the security breach, conducting forensic analyses, and implementing measures to prevent future incidents. Unless you have a dedicated digital forensics team on staff, you’ll need some help with this one… and experts aren’t cheap!
3. IT Remediation
Repairing and restoring IT systems, including hardware and software, is a direct expense. This involves the cost of hiring experts, obtaining software licenses, and potential hardware replacements. Depending on what type of attack or breach you’ve experienced, you might need major remediation.
4. Legal and Regulatory Compliance
If the cybersecurity incident involves a data breach, your business may incur legal fees, fines, and penalties, whether through non-compliance with data protection regulations or through other legal action.
5. Communication and PR
It’s a tough one, but part of a cyber incident response involves informing customers, partners, and the public about what happened, and what the impact is. This process is especially crucial for damage control (nearly 100% of people tell a friend about a bad experience with a company) and requires resources including communications and disseminating information, especially because you need to be legally compliant while still working to protect your reputation.
6. Insurance Premiums
If your business has cybersecurity insurance, good thinking! It will likely be worth it, but, as in many insurance situations, a claim may result in increased premiums. You can factor this in when considering long-term insurance costs.
7. Operational Disruption
Consider the disruption to normal business operations, including the time and resources required to get back to full operational capacity. Whatever that could entail—changing the locks, getting new logins for every employee, or installing software on new workstations—the “getting back on your feet” transition period will take time and money.
To get an in-depth estimate of the cost of network downtime, businesses can conduct a thorough risk assessment, considering the specifics of various types of cyber incidents. You’ve heard it before, but it’s true: in today’s cyber climate, it’s not a matter of “if” you’ll be impacted by a cyber threat; it’s when.
Ready to take steps to protect yourself from all these costs and potentially others?
Stratti is ready and waiting to help you assess your risk, build a backup and disaster recovery plan, and help protect your company from unnecessary costs due to hacker-related downtime.
Contact us now for a FREE 15-minute risk assessment.