What Does Cyber Crime Cost?

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    The answer is more than you might expect

    The price you pay as a victim of cyber crime doesn’t end with whatever hackers managed to make out with. Recovering and repairing systems costs time and money, and your reputation is almost guaranteed to take a hit which, of course, leads to losing even more of your cash flow.

    In fact, a recent study by Hamilton Place found that…

    • The median cost of cybercrime has increased by nearly 200 percent in the last five years and is likely to continue growing.
    • Having a plan in place for how to respond to a cyberattack could save millions.
    • The reputational risk associated with cybercrime extends well beyond monetary damages.

    While certain types of insurance do cover cyber crime, don’t count on them replacing the potential millions you could lose as a result of the reputation damage that follows.

    There is no way to completely prevent a hack short of unplugging your entire organization, so what do you do? It’s simple. Assume it will happen, and be prepared to mitigate the damage through solid communication and a clear recovery plan.

    For more resources, see the Free Management Library topic: Crisis Management

    [Jonathan Bernstein is president of Bernstein Crisis Management, Inc., an international crisis management consultancy, author of Manager’s Guide to Crisis Management and Keeping the Wolves at Bay – Media Training. Erik Bernstein is vice president for the firm, and also editor of its newsletter, Crisis Manager]

    – See more at: https://managementhelp.org/blogs/crisis-management/2016/02/18/irs-data-breach-redux/#sthash.hXBVlptN.dpuf