Cyber Security

It is difficult to miss the press coverage of a system compromise or breach these days. The media has started to cover this topic like never before, and there is a lot to cover. Cyber breaches have become a pervasive problem and have hit organizations of all sizes and in all industry sectors. One study released earlier this year found that during a six-month period spanning 2013-2014, an astonishing 97 percent of organizations that had been examined had been breached.

Now include the fact that IBM sponsored research found that last year, the average total cost of a data breach was $3.5 million--up 15 percent from the 2012 figure. It is important to note that some put the cost at $246 per record; that would increase the potential cost to over $13.75 billion. When it comes to the defense sector, the costs can be far greater when long-term research efforts are compromised or when national security initiatives are involved--or the competitive strategy of a business is compromised and the next generation of their products stolen.

The frequency and impact of these breaches have risen to a point where some highly skilled practitioners in the field recommend that organizations conduct breach management exercises regularly. Financial impact is clearly a major factor driving the use of formal project management practices and staff when a data breach/compromise occurs. The implications of a cyber-breach do not stop there. Multiple studies have determined that the vast majority of organizations experiencing a breach lose customers, and face litigation. About one-third face fines and regulatory action, and experience a decline in share value.