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The real cost of a data breach

FINANCIAL REPORTING INSIGHTS  | 

For businesses to successfully navigate today's cyber threats and effectively respond to data security events, understanding the costs associated with a data breach is critical. Incidents at Fortune 500 organizations get significant media coverage, but the reputational and financial impact to small and middle market companies can be even more damaging.

RSM US LLP is a sponsor of the 2017 NetDiligenceĀ® Cyber Claims Study, which provides greater insight into data breaches and associated damages. The survey details that small companies are more vulnerable to breaches, with nanorevenue companies (less than $50 million) experiencing the majority of incidents (47 percent). That sector was followed by microrevenue companies ($50 million to $300 million) (23 percent) and mid-market and small-revenue companies ($50 million to $2 billion) (15.7 percent).

The 2017 study summarizes NetDiligence's findings from a sampling of 354 cyber claims, 343 of which involved the loss, exposure or misuse of sensitive personal data from a variety of industry sectors. It also examines the type of data exposed, the cause of loss, the industry sector in which the incident occurred and the size of the affected organization.