Technology is changing and so should companies. Previously, there have been divisions among departments as they thought they had very little in common. But in recent years, this has changed. Instead of separation, many companies are now witnessing how the security of a business can affect more than just its IT department, and thus, need to encourage different department officials to work together.
Security Breaches Aren’t a Myth
We seem to think that a security breach could never happen to us or our business. But, it’s been noted that in the U.S. alone, breaches have jumped 29% within the first half of 2017. Additionally, the majority of breaches aren’t solely from hacking technology advancing; they’re also because businesses are using databases that are directly connected to the internet without investing in their security.
Security Breaches Affect Everyone
Security breaches don’t only affect the company that was targeted, or the individuals whose information was taken. They affect everyone. In recent news, the Equifax security breach that happened in July 2017, is an example of how even the largest of companies can be targeted and compromised. It was noted that the information that was obtained during the breach included consumers’ names, social security numbers, addresses and even some driver license and credit card numbers. The extent of the breach was noted to affect up to 143 million people in the United States as well as an undisclosed number of Canadians.
Not only do breaches like this affect the consumers whose personal information was taken, but it affects the finances and reputation of the company. Even though the Equifax security breach was not the largest data breach in history, it does pose the risk of tarnishing the company’s reputation in their industry and among their consumers as trust and reliability could be lost.
Departments Have to Work Together to Limit Security Breaches
Having a security breach within a company can be detrimental to its future. Not only does it question their reliability for future investors or consumers, but it changes their financial standing. To further prevent these types of breaches from happening to companies, it’s essential that departments work together rather than staying divided. Specifically, CFO’s (Chief Financial Officer) and CISO’s (Chief Information Security Officer) need to come together to fully understand the risks that are present and learn what they can both do to limit their company’s cyber exposure gap.
More Resources Need to be Allocated
Security has become more of a popular topic within companies, but still, it’s noted that on average only 3-7% of a company’s revenue is for IT budgets, and from that, typically only 5% of it is spent on security. These numbers are alarming as security breaches are becoming more frequent as technology is not only changing the way we organize businesses but is also changing how security breaches happen. By improving revenue delegation and focusing on preventing security breaches, firms on average could experience 6.8 fewer breaches and save more than $5 million per company by investing more in their IT security.
Who’s Accountable if a Security Breach Occurs
Security breaches don’t only affect the consumers of a company as mentioned before with Equifax, but it can also affect their financial standing. In fact, the Equifax breach caused their stock price to drop dramatically, and it’s been noted that breaches generally result in the average stock price to drop about 5%, with revenue declining as much $3.4 million. As well, some fines could arise in addition to financial turnover happening in the following year. With this being said, the CFO of a company can’t ignore their accountability and responsibility in regards to security breaches as their department is affected and involved just as much as the CSIO’s department.
With the threat of security breaches always looming, it’s crucial that every business is prepared and secure. Regardless of the information you’re trying to protect, Mantralogix knows security and has the software solutions to help. Contact our Support Team to learn about the software solutions we offer and how we can help you stay protected.