Sam elkholy Director, systems engineering The cost of a breach Sam elkholy Director, systems engineering

Agenda Introductions Expense Categories Activity Based Costing (ABC) Average Cost of Breach Cost Calculation

Introductions Name Company What You’d Like to Get From Today

Detection, Escalation and Response Administration Costs Expense categories Detection, Escalation and Response Investigation Activities, Assessment, Auditing Administration Costs Email and Phone notifications, General and Legal Notices to Subjects Concerned

Expense categories Data Breach Aftermath Help Desk and Support Activities Credit Report Monitoring / Identity Theft Issuing New Account Legal Expenses Regulatory

Business Opportunity Cost Expense categories Business Opportunity Cost Cost of Business Disruption Opportunity Loss Intangible Costs IP Loss Reputation / Reduced Goodwill

Activity Based Costing (ABC) Conducting Incident Response Activities (Root Cause) Review Standard Operating Procedures Assemble Response Team Prepare and Conduct Public and Regulatory Outreach Prepare Required Disclosure to Victims and Regulators

Activity Based Costing (ABC) Aftermath Costs Auditing and Legal Compliance Legal Services Associated Costs for Victims of the Breach Identity Protection Services New Customer Acquisition Costs

Average Time to Discovery 279 days Average Cost of Breach Global Average United States Average $3.9M $8.9M Average Size Data Breach 25,575 Records Healthcare Average Time to Discovery 279 days IBM 2019 cost of data breach https://databreachcalculator.mybluemix.net