Post #30: $3.9m is a lot of money; $1tr is a lot more
No one likes the idea of being hacked, but cybercrime is increasingly omnipresent, and its costs are rising. The cost of a data breach has grown by 12% over the last five years and now amounts to an average of $3.9m per corporate, according to a study published today by IBM in conjunction with the Ponemon Institute. These costs comprise the financial impact, the burden of potentially increased regulation and the complex process of resolving criminal attacks.
The report makes for daunting reading. Consider that organisations globally have lost over 11.7bn records in the last three years as a result of cybercrime. Businesses within the healthcare sector (perhaps owing to their outdated IT) are the biggest victims. Interestingly, while cybercriminals are the main culprits, the report suggests that over 40% of data breaches could potentially have been avoided had it not been for human error and/or system glitches.
From every crisis springs and opportunity. To address the low-hanging fruit, staff training can clearly be improved. More practically, increased process automation and the better deployment of next-generation cybersecurity software represent potential solutions. Against this background, some $1tr is set to be spent on cybersecurity solutions over the next seven years, per a study from Cybersecurity Ventures, a leading industry research provider. Where will all this money go? We do not know the answer but believe that those businesses operating in niche segments with differentiated propositions stand to benefit. The term ‘artificial intelligence’ may be one of the most over-used within the broad arena of future trends, but cybersecurity remains one of its best use-cases. Through the analysis of large data sets, AI can help make cybersecurity solutions more pre-emptive, stopping threats before they even arrive.
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