Hard Stats on The Cost of Information Crises

How much does an info crisis cost?

Data breaches and other information or IT-related crises are expensive. Plugging the hole costs money, you could very well be left paying stakeholders in recompense, and, depending on your level of preparedness, the hit to your reputation could wind up being more costly than anything else.

IBM and Ponemon Institute put together a fantastic study that puts a price tag on these types of crises, and summed the information up in the infographic below:

IBM infographic: Understanding the economics of IT risk and reputation

Perhaps the most telling stat there is that 75% of event costs go to reputational damage and the bottom line. In our experience, a little spending up front will save you massively over reacting once a crisis hits. It can be hard to convince the people who hold the purse strings, but they’ll thank you for your foresight when trouble does eventually head your way.

Erik & Jonathan Bernstein
www.bernsteincrisismanagement.com

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