A Thriving Business Stopped Dead by a Data Breach
It’s a familiar story: a data breach can disable a company almost overnight. An established business with a solid reputation suddenly experiences a data breach attack, compromising essential infrastructure. Their security, thought to be sufficient, falls short.
But how much does a data breach really cost?
What is a Data Breach?
A data breach is defined as an event in which records are potentially put at risk, containing:
- Personally identifiable information (PII);
- Financial or medical account details; or
- Other secret, confidential or proprietary data.
Cost of Data Breaches for Canadian Companies
From here on out, the data and statistics presented are taken from a 2023 IBM study on the costs of data breaches. The study covers 553 organizations impacted by data breaches between March 2022 and March 2023 across 16 countries and regions and in 17 different industries.
The average cost of a data breach in 2023 was CAD 6.08 million.
The average cost of a data breach in 2023 for Canadian companies was CAD 7.03 million.
Canada had the third highest cost of data breaches in 2023 behind the United States and the Middle
East.
In Canada, the average total cost of a data breach decreased from CAD 7.72 million to CAD 7.03 million or 9%.
Cost of Data Breach by Industry
The healthcare industry reported the highest breach costs for the 13 th year in a row.
Figure 1. Measured in CAD millions
Average Times to Identify and Contain Breaches
The mean time to identify (MTTI) and the mean time to contain (MTTC) seem to have peaked in 2021. In 2023, it took organizations 204 days to identify a breach and 73 days to contain it.
Figure 2. Measured in days
Data breaches resolved within 200 days cost an average of CAD 5.38 million, significantly less than the CAD 6.78 million for those taking longer.
Quicker containment results in a 23% cost reduction, saving CAD 1.40 million.
Figure 3. Measured in CAD millions
Cybersecurity: Safeguarding Business Future
In business, the spotlight often shines on sales, but cybersecurity—quiet yet critical—defends more than just data; it protects a company’s future.
The decline of a thriving business due to a data breach highlights the critical financial and reputational impacts of underestimating cybersecurity.
The steep costs of data breaches confirm that investing in cybersecurity is not just “a nice to have”; it’s essential.
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If cybersecurity is also close to your heart, join Clayton Dendy (Caloa) and me as we discuss how security and compliance can protect your crown jewels and drive sales for your business!
Register now for the webinar on May 21, 2024:
https://us02web.zoom.us/webinar/register/WN_7Z8nR52LRfCYKhcrFKDCGQ#/registration
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