The Road to Data Breach Preparedness: Overcoming the Challenges
The Need for Data Breach Preparedness
With 86% of companies having a data breach response plan in 2016 versus 61% in 2013, according to the Ponemon Institute, organizations are increasing their preparedness level when dealing with a data breach. However, this does not mean organizations know how and when to implement their plans properly.
Lack of Plan Implementation
The study revealed several ways companies fail to use their data breach plans effectively. For example:
- 38% of organizations do not have a set time for reviewing and updating their data breach plans.
- 29% have not reviewed or updated their plan since it was implemented.
- 26% of organizations do not practice their plans, and 64% do not prioritize practicing them.
- Only 39% of organizations practice their plan at least twice a year.
- 27% lack confidence in minimizing a breach’s financial and reputational consequences.
- 31% lack confidence in dealing with an international incident.
- Only 38% of companies have a data breach or cyber insurance policy, while 40%, surprisingly, do not plan on purchasing one.
- 46%, less than half, have integrated response plans into their business continuity plans.
- Only 12% meet with law enforcement or state regulators ahead of time in case an incident occurs.
This research shows that having a data breach response plan is just the start – organizations need to follow through on implementing those plans to be effective at all times – especially considering the new threats like ransomware they face regularly. Fifty-six percent are not confident that they could deal with such an incident, and only 9 percent have determined under what circumstances they would pay to resolve it if necessary.
What Organizations Should Do for Effective Data Breach Preparedness?
Organizations can take action both before and after an incident occurs to make sure that they are ready if disaster strikes:
- Executives should prioritize security as part of running the business operations rather than seeing it separate from other processes.
- Investment should be made toward security technology detecting and responding to breaches (58% increased investment over the past year).
- Implementing privacy/data protection awareness programs and training employees with access to sensitive information (61%).
- Offering identity theft protection services (71%), gift cards (45%), discounts (40%), etc., post-breach helps customers feel secure while aiding damage control efforts by protecting businesses’ reputation/brand image/customer loyalty/investor relations, etc.,
In conclusion, having an actual written data Breach Response Plan isn’t enough; organizations need to review and update it regularly to ensure that they are always making updates based on changes from new threats like ransomware or changes within the company itself. Otherwise, companies may end up worse off than if they never had one!
Business leaders cannot afford to wait for a data breach to happen before taking action. Proactive steps need to be taken so that businesses can weather any storm that comes their way. Don’t wait until the worst happens and your business is at risk of suffering financial and reputational damage. Today, please schedule an appointment with an NCX Group expert to learn how to create a comprehensive data breach response plan and ensure it’s always up-to-date.
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