The typical direct price of a critical cybersecurity incident elevated by 11% year-on-year to succeed in $1.7m in 2023, based on consulting agency S-RM.
The agency polled 600 C-suite and IT funds holders from US and UK organizations with revenues over $500m to supply its 2023 Cybersecurity Insights Report.
The commonest incident sorts have been fraud, third-party compromise and knowledge exfiltration, though these different by sector. The bigger the group, the larger the chance of knowledge exfiltration and ransomware, the examine discovered.
The highest contributors to incident prices have been elevated insurance coverage premiums (37%), operational downtime (36%) and restoration/response prices (32%).
Read more on data breach costs: Data Breach Costs Hit Record High but Fall For Some
The typical of $1.7m additionally rose considerably to $2.7m per incident for organizations with out cyber insurance coverage, S-RM claimed.
“For a lot of organizations, cyber insurance coverage has far exceeded being only a ‘good to have’, and our most up-to-date knowledge reveals precisely why it’s so important to be correctly insured in opposition to cyber-incidents and knowledge breaches,” stated S-RM’s head of cybersecurity within the Americas, Paul Caron.
“Premiums could also be rising, however with out enough insurance coverage the regulatory, reputational and downtime dangers are far greater – companies should take observe.”
Worryingly, the highest two cybersecurity challenges cited by respondents have been hybrid working and a “lack of knowledge round cyber traits and threats” (each 38%). In third place got here “lack of inner coaching” on how one can spot threats.
Whereas incident prices are on the up, budgets for cybersecurity solely rose by 3% to a median of $26.8m in 2023, based on the report.
Subsequent yr they’re predicted to rise by a extra wholesome 8%, though in prior years the precise enhance has been considerably lower than that predicted. Retail (28%), telecoms (27%) and prescribed drugs (27%) corporations allotted the most important share of IT funds to cyber in 2023.
