Every provider of managed services in Southern California highlights IT security as part of its service offering, but what is the basis for this? To fully justify the costs, you must incur for IT security in your business, you must understand how much a security breach can cost you. There are different types of data breaches— some preventable and others unpreventable, some internal and others external, some minor, and others major.
Breaking Down the Costs
The best way to understand the cost of a data breach is to be specific about the nature of the cost and the monetary value. Your business continues to operate because of the trust your clients have in your ability to provide valuable products and services and possibly your ability to guarantee their privacy. In healthcare, the financial sector, and the legal practice, for example, confidentiality is crucial. When a business faces any sort of breach, this may affect the ability to continue to provide services, the client’s confidence, and the business reputation. Lost sales are likely as customers shift their business to competitors who are able to deliver. Often these costs are hard to accurately quantify, but it is always possible to estimate the costs based on sales figures before and after the breach.
Some costs to the business are more direct and are paid upfront in real dollars. These include legal fees to compensate customers who file claims and to pay for legal representation. Businesses often have to pay additional regulatory fines for the compromise of data, depending on the industry. In order to notify customers of a breach as required by state laws, businesses must incur notification charges and may need the services of a professional PR service.
Many businesses have had to shut down completely after facing the high charges of a breach. According to IBM’s 2016 study on this subject, the average breach can cost $7 million. With managed services in Southern California, your business can avoid falling into the downward spiral and legal fallout that occurs after data is compromised.
Are you looking for the top IT security services to protect your business systems from cyberattacks? ecasys can help you implement cutting-edge security systems to keep you compliant and your data safe. We also provide a variety of other managed services in Southern California such as SD-WAN Solution, tech support, and design and development services. Contact us to learn more about our IT solutions for businesses.