A new study from Telus Communications Inc. in partnership with Rotman School of Management released today shows tha...
July 28, 2008
A new study from Telus Communications Inc. in partnership with Rotman School of Management released today shows that IT security breaches are costing publicly traded Canadian companies an average loss of more than $637,000 annually.
In government, the cost is $320,000 per organization, while the cost to private companies is $294,000 a year to cyber crime.
Similar studies in the U.S. show the cost of data security breaches more than doubling year over year, rising to an average of US$345,000 in 2007 from US$167,713 in 2006 for public companies.
There is no similar benchmark data for Canada, but Rotman business economics professor Dr. Walid Hejazi says the trend towards increased loss is likely similar here.
“IT security is a C-suite level business issue,” he said. “In an increasingly information-based society, managing data security is fundamental to business strategy. Security breaches come with indirect and direct costs. The damage to brand and customer confidence can last a very long time, and as our study shows, direct costs are significant and measurable.
“Simply put, our study clearly shows that lacking the ability to collect and store information safely will severely limit the success and growth potential of anybusiness.”
The full results of the study will be made public tomorrow at the Information Systems Audit and Control Association (ISACA) 2008 international conference in Toronto.