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Data Security Breach Responsibility Shifting to C-Suite, Costly Blind Spots Affect Company’s Financial Landscape

Posted by Pete Flagella on Sep 27, 2017 12:45:49 PM

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Data breaches through all industry verticals are on the rise and the responsibility for those breaches has shifted to the C-Suite. According to 2017 data breach reports by Forrester and Verizon, “45% of IT Practitioners don’t believe that brand protection is taken seriously in the C-Suite and 42% of CMO’s don’t believe that brand protection is taken seriously in the C-suite.”  This kind of “in the dark” thinking creates blind spots with costly consequences resulting in decreased bottom line, shareholder value, and damage to the brand.  Additionally, the reports state, “31% of consumers discontinue relationship after a breach.”   The C-Suite miscalculation of risk must be taken seriously and can no longer be viewed only as an IT issue, but rather must be treated as a shared responsibility.

Below are some additional statistics from the Forrester and Verizon 2017 Data Breach reports:

  • 66% of organizations experience an average of 5 or more security breaches
  • 81% of breaches are due to weak, default, or stolen passwords
  • $400m+ of shareholder value was lost after Chipotle reported a breach
  • Stock prices drop 5% on the day a data breach is exposed
  • Customer turnover can average as much as 7% after a breach
  • Only 20% of CMO’s and 5% of IT practitioners say they would be concerned about a decline in their companies’ stock price

The recent Equifax and SEC data breaches are just two examples of how critical these blind spots are becoming. Both organizations are facing catastrophic consequences due to vulnerable software security. Millions of individuals have been affected by the Equifax breach, leaving the organization with a tarnished reputation, lack of trust, and financial havoc.  Shortly following the announcement of the Equifax breach, both the CIO and CSO announced their resignations as the company deals with the massive fallout.

If you are starting to see the light in all of this and are ready to take ownership in implementing an effective data security strategy, take a look at Prime Factors, Inc. There is a reason nearly half of Fortune 500 companies use our software.  At Prime Factors, we believe data security is a “prime factor” of business continuity.

How Can We Help?

  • Prime Factors' EncryptRIGHT makes it easy to deploy encryption and tokenization in many different environments, even for the non-technical.  Check out our deployment options.
  • An optional tokenization module that reduces the scope and cost of a PCI audit among other features. 
  • Our solution is cross-platform compatible, giving you the flexibility to launch on a wide range of large computers and PCs.

To learn more about Prime Factors' integrated data security software EncryptRIGHT, click here to watch a 5-minute overview. We provide data security solutions regardless of your platform, architecture, or industry sector.  

Contact us today and let us know how we can help or if you have additional questions about any of our other data security solutions!
 

To learn how encryption can lower the cost of regulatory compliance while enhancing security, download our white paper Reducing the Cost of Regulatory Compliance with Encryption.  

 

 

Topics: encryption, PCI Data Encryption, PCI Data Security Standards, data breach, equifax