The Business Case for Implementing Data Loss Awareness

Data breaches are taking its toll on businesses. In 2023, the average cost of a single breach soared to $4.45 million. That number doesn’t even account for the reputational damage that turns loyal customers away and makes attracting new business an uphill battle.  How much would a major data breach cost your company? It’s a scary question, but one you need to know the answer to. While investing in cybersecurity tech is essential, one overlooked piece of the puzzle is Data Loss Awareness (DLA).

What if you could reduce the likelihood of a breach by focusing on simple employee education and awareness? DLA tools gently guide your employees towards safer data handling, reducing the risk of costly mistakes that lead to breaches. It’s time to view DLA not as a “nice-to-have” tool, but as a critical way to protect your bottom line and the reputation you’ve built.

Quantifying the Cost of Data Breaches

Those big data breach numbers thrown around in the news can feel abstract. But the costs are painfully real for businesses who become victims. For example, the annual cost of a data breach for an SMB with 500 staff can be as high as $459,480. That cost can skyrocket to $6,763,740 for an enterprise of 2500 employees.

Here’s why those figures should make you sit up and take notice:

• Direct Financial Hits: This includes forensic investigations, the cost of notifying affected customers, legal fees, and potential regulatory fines for breaching privacy laws.
• Lost Business: Business disruption due to system downtime may drive existing clients to leave, and attracting new ones becomes harder.  This impacts growth opportunities and future revenue.
• Reputational Harm: Bad publicity surrounding a breach tarnishes an organizations brand image, and customers may lose trust in the company. It can take years to recover fully.

It’s important to remember that these are average costs. Breaches involving large amounts of highly sensitive data, or those affecting critical infrastructure, can cost significantly more.

DLA as a Breach Prevention Tool

It’s tempting to think of cyberattacks in terms of sophisticated hackers and complex malware. The truth is that many breaches happen due to plain old human error. In fact, Verizon highlights that up to 13% of data breaches can be attributed to negligent human behaviour – Two common scenarios include an employee inadvertently sending a confidential email to an unintended recipient or attaching sensitive information and distributing it to an unauthorised email list, potentially exposing confidential data. This is where a Data Loss Awareness (DLA) tool can make a real difference.

How DLA Changes Behaviour

Consider DLA as a safety net for data. It delivers real-time alerts when employees take potentially risky actions (like trying to send sensitive information as an attachment).  Additionally, DLA offers bite-sized, contextual training modules, reminding users about proper data handling procedures before they hit send.

Creating a Culture of Awareness

Over time, DLA fosters a mindset where employees think twice before making a hasty data-related decision. This culture of awareness is invaluable because it dramatically reduces the likelihood of breaches caused by carelessness or ignorance.

It’s crucial to note that DLA doesn’t replace robust technical security. It complements security awareness training and security tooling and processes to empower your most important line of defence – your people.

Boosting Compliance with Data Loss Awareness

Businesses today must navigate a maze of data privacy regulations. Depending on your industry and location, you may be subjected to laws like GDPR, HIPAA, or CCPA, that you have to comply with.  Staying compliant is an ongoing challenge, and the penalties for non-compliance can be just as steep as the cost of a breach itself.

DLA solutions can help you demonstrate good faith in safeguarding sensitive data.  These tools often include features like enforcement of your data handling policies, ensuring employees follow the proper procedures. In the event of a data incident, demonstrating that you have the right processes and tools to promote data awareness can reduce the severity of fines and penalties from regulators. It shows you’ve taken proactive steps to protect the data you’re responsible for.

Finally, implementing DLA tools can be a step closer to securing your company’s cyber insurance coverage. Insurers look for robust security awareness training programs; supplementing your program with “just-in-time awareness nudges” demonstrates a strong commitment to employee empowerment and data privacy.

The Intangible ‘ROI’ – Your Brand

The financial costs of data breaches and non-compliance are easy to quantify. But what about your business’s reputation? Implementing a DLA solution sends a powerful message. It demonstrates that you are serious about data security and recognises that protecting customer and partner information is a core part of your business values.

Emphasising data awareness positions your business favourably. Consumers are increasingly savvy about digital risks. A commitment to data protection builds trust and sets you apart from competitors who might be less proactive in this area.

Calculating the ROI of a DLA Solution

Every business leader wants a positive return on investment (ROI). While DLA may not directly generate revenue, it provides powerful risk mitigation that translates into cost savings. Let’s consider a simplified way to think about the ROI of DLA:

1. Estimate Potential Breach Costs: Using industry reports and your understanding of your business, determine what a data breach would likely cost you. Consider factors like lost revenue, fines, and remediation efforts.
2. Compare the Cost of DLA: Obtain quotes for DLA solutions suitable for your business size and complexity. Factor in implementation costs as well.
3. The Power of Prevention: Often, preventing even a SINGLE data breach more than justifies the investment in DLA. Don’t forget the intangible benefits of enhanced reputation and compliance, which strengthen your business overall.

The True ROI of DLA

Data Loss Awareness (DLA) is an essential layer of protection in an era where data breaches are both costly and distressingly common. While DLA isn’t a magic bullet that solves all security challenges, it empowers your most valuable asset – your employees – to become the first line of defence.

When integrated with robust technical security measures and security awareness training, DLA helps to reduce human error-caused breaches dramatically, enhances compliance, and protects your hard-earned reputation. The true ROI of DLA comes from the peace of mind of knowing you’ve done everything in your power to safeguard your business’s sensitive data.

If you’re not already evaluating DLA solutions and investing in data awareness training, now’s the time to start. SafeSend can help. Contact us to schedule a free demo and learn how our Data Loss Awareness solution can build a robust data protection strategy for your business.