A data breach's financial impact on an organization is considerable. A recent survey found that 27 percent of organizations that experienced a breach spent between $5,000 and $50,000 to respond, and 30 percent spent between $50,000 and $100,000. Only 20 percent of organizations spent less than $5,000 addressing a breach.
Twenty-nine percent of U.S. organizations experienced a data breach in 2016. The survey also found that a vendor or contractor caused 47 percent of data breaches; employee negligence caused 21 percent; and lost or stolen mobile devices or storage media caused 20 percent of the breaches.
Of those surveyed, 51 percent said that "lack of knowledge" would be their biggest hurdle to recovering from a data breach, while 41 percent named "a lack of resources" as the biggest obstacle. Two-thirds of those who experienced a data breach said that it negatively affected their organization's reputation. Patricia Daddona "Survey: Cyber hacking a costly expense for many businesses," www.hartfordbusiness.com (Dec. 11, 2017).