The Wall Street Journal | By: Ben DiPietro | GPE – December 20, 2017:
The cost of compliance for organizations rose 43% between 2011 and 2017, while the cost for not being in compliance rose 45% in that time, according to new research from data-integration firm Globalscape and Ponemon Institute.
The research, based on an analysis of 53 multinational companies located in the U.S. and a survey of executives, found the average cost of compliance was around $5.5 million in 2017.
That amount includes costs for privacy, data integrity and data loss, and protecting credit cardholder information.
The cost of noncompliance was around $14.8 million, or 2.7 times more expensive than adhering to standards and maintaining compliance.
Counted among the costs of noncompliance are items such as business disruption, loss of productivity, fines, penalties and settlement expenses, according to the report.
Despite the economic advantages to being and staying compliant, the report found organizations aren’t spending enough on compliance, though the report found companies on average spend about $2 million a year on data security.
“Data is a precious commodity for individual consumers and multinational organizations alike. And the threat posed by cyberattacks is only growing exponentially,” said Peter Merkulov, chief technology officer at Globalscape, in a statement. “Understanding where your data travels, resides, and how to best protect it is no longer an option for companies, especially as their businesses’ livelihood is also at stake.”
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