Data security breach at your business can cost more than cash

The Cost of Security

Every employer has undoubtedly heard the buzz about security breaches in the workplace, and the problems and costs associated with a security breach. These breaches not only cost big bucks literally, but also cost big bucks in terms of public relations with customers.

A 2013 study entitled “The Cost of the Data Breach: Global Analysis” by the Ponemon Institute estimated that the total cost of a data breach in the United States is $5.4 million per incident. However, with the threat of security breaches ever growing, employers should consider taking some practical steps to protect themselves:

▪  First, employer should consider getting some legal advice. The laws surrounding data privacy and security are a difficult web to untangle. There is a complicated layer of both state and federal laws and regulations that employers need to comply with. Getting some guidance could save a lot of time, headache and resources in the long run.

▪  Second, employers should consider a cybersecurity insurance policy. As with any insurance policy, employers should make sure the policy matches the employers needs and the potential problems they could have — whether that is notifying customers, litigation resulting from a breach or other issues.

▪  Third, employers should consider establishing a company protocol and policy, designating a privacy and security office and steps that will be taken in the event of a breach. If they wait to put a plan into action until after a breach has occurred, an employer is already behind the eight ball and exposed to liability.

▪  Fourth, employers should provide privacy training both to prevent security breaches, but also on what needs to be done in the event of a breach. This can not only help problems and reduce exposure, but also will hopefully improve response time in these trying situations.

Shoring up your policies and practices can help an employer secure themselves against breaches in the future. Employers with questions about these, or other business should contact an attorney of their choice.

This story was originally published April 25, 2017 at 5:05 PM with the headline "Data security breach at your business can cost more than cash."