When we think about data breaches, the first thing that comes to mind is usually the cost of the breach – the forensic investigation, notification costs, the cost of getting hacked, the cost of notifying customers, credit monitoring for those affected, and so on. However, there is another cost to data breaches that is often overlooked: downtime.
Data center downtime costs can have a major impact on businesses of all sizes, resulting in lost revenue and decreased productivity. In this blog post, we will take a closer look at the cost of downtime due to data breaches and how we can protect your business from this type of cost.
What Is Downtime?
So, what do we mean by downtime? Downtime is defined as the period of time during which a system is unavailable for use. In the context of a data breach, downtime can refer to:
- The time it takes to identify the root cause of the breach
- The time it takes to contain the breach
- The time it takes to recover from the breach
Each of these can have a significant impact on your business. For example, if it takes you 24 hours to identify and contain a data breach, that is 24 hours of lost productivity. And if it takes you another 24 hours to recover from the breach, that's 48 hours of downtime in total.
Downtime can also refer to the time it takes to implement security measures to prevent future breaches. This might include things like patching vulnerabilities, updating software, or changing passwords.
Causes of Downtime
There are many causes of downtime, but the most common cause of downtime is due to system or component failures. Other causes include natural disasters, power outages, network outages, and human errors.
When a data breach occurs, sensitive data is exposed and can be used to harm the company which owns it. This can lead to a loss of business, damage to reputation, and even legal action. Several other events can also cause downtime, but data breaches are one of the most common causes.
As a result, it's important to take steps to protect our data and minimize the risk of downtime. One way to do this is to invest in a cybersecurity assessment tool, and data security solutions that can help to detect and prevent data breaches.
Another way to reduce downtime is to have a cybersecurity assessment framework and a backup plan in place so that we can quickly recover from any disruptions. By taking these steps, we can help protect your business from the cost of downtime.
The Cost of Downtime
So, how much does downtime cost per hour? It depends on several factors, including the size of the business and the type of industry. For example, a small business might lose $100,000 in revenue for every hour its systems are down, while a large company could lose millions.
The cost of downtime can seriously affect a business, both in terms of lost revenue and damage to its reputation. In some cases, businesses have had to close their doors permanently because they could not recover from a prolonged period of downtime. This is why it's so important for businesses to have network security assessment companies and cybersecurity strategies to protect their systems and data.
A cyber security assessment methodology can help identify the risks that could lead to downtime and allow businesses to take steps to mitigate those risks. By taking these measures, businesses can reduce the cost of downtime and protect their bottom line.
Effects of Downtime
No business is immune to the effects of downtime. Downtime can result from system failures, data breaches, and natural disasters, among other events. The average cost of downtime by industry is $2600 per minute for financial services, $8400 per minute for healthcare organizations, and $17000 per minute for manufacturing companies (Downtime Cost Calculator).
The cost of unplanned downtime can be divided into three main categories: direct costs, indirect costs, and opportunity costs. Direct costs are the most obvious and include things like lost revenue, damaged equipment, and data recovery. Indirect costs are less obvious but can be just as detrimental to a business.
These include things like loss of productivity, damage to reputation, and legal fees. Opportunity costs are the potential revenue lost when a business is unable to function.
The cost of network downtime can be difficult to quantify, but it is important to consider how our business could be affected. Downtime can result in lost customers, missed opportunities, and decreased productivity. To avoid the negative effects of downtime, it is important to have a plan.
By understanding the effects of downtime, we can make informed decisions about how to protect our businesses. Investing in reliable systems and data backup can help reduce the effects of unplanned downtime. Having a plan in place to quickly recover from an outage can also help minimize the impact of downtime on our businesses.
Let's Protect Your Business!
As we've seen, the cost of downtime due to data breaches can be high. That's why it's so important to have cyber security assessment companies and cyber security strategies to protect our businesses from this type of cost.
One way to do this is by conducting a cybersecurity vulnerability assessment to help you identify and fix any security weaknesses in our systems. By taking these steps, we can help protect our businesses from the cost of downtime.
So, there we have it. The cost of downtime can be high, but businesses can take steps to reduce the risks that lead to it. Want to make sure that business is covered with a cyber security strategy? We can help. Learn more here. We'll help you identify the risks and put up a plan to keep your systems up and running.