Analysis: A deeper look at business impact of a cyberattack

[SpartacusSystem]

Few would dispute that cyberattacks are increasing in frequency and in intensity, and most organizations confirm they have now suffered at least one cyber incident. But do those organizations have a true sense of the full impact on the organization? After all, the direct costs commonly associated with a data breach are far less significant than the “hidden costs” incurred.

Indeed, the “hidden” costs can amount to 90 percent of the total business impact on an organization, and will most likely be experienced two years or more after the event. These are among the findings of a recent study by Deloitte Advisory entitled, “Beneath the Surface of a Cyberattack: A Deeper Look at the Business Impacts.”

Deloitte identifies 14 business impacts of a cyberattack, which are categorized as “above the surface” or well-known incident costs, and “below the surface” or hidden or less visible costs. There are seven impacts in each category.

But Deloitte believes the current market valuation of cyber incidents is greatly underestimated, since the public focuses on the above the surface impacts – the far smaller percentage.

Quite insightful! Have a read: A deeper look at business impact of a cyberattack