Effective IT security can improve the bottom line of any organisation if it is implemented correctly and based on thorough risk assessment.
Research shows that significant savings can be made. The average cost of a security incident at a large company is between £65,000 and £190,000 (approximately €95,000 - €280,000, $112,000 - $330,000), according to a recent Information Security Breaches Survey from the Department of Trade and Industry in the UK. Ernst & Young’s 2004 Global Information Security Survey showed that the hourly cost of downtime, caused by security breaches at European companies, could be as high as £5,700 (about €8,500 or $10,000).
In spite of this many companies still regard security as a necessary evil and a cost burden.
“The idea of seeing information security merely as an insurance policy, with no payback, is outdated,” says Ray Stanton, global head of BT’s business continuity, security and governance practice. “Of course, if vulnerabilities are exploited by the unscrupulous there will be costs involved, which adequate security measures can prevent. But the value of security goes beyond protection: it is a key enabler for numerous business functions and processes that otherwise would not have been possible.”
BT believes the benefits of security go beyond potential cash savings. By securing their networks effectively, organisations can rely on new technologies to reduce costs and improve revenues by streamlining processes, communications and routes to market and to support new ways of working. For example, successful mobile and remote working is enabled by appropriate security measures.
Business is also increasingly conducted on a collaborative level, made possible by internet-based technology. In this environment the ability to guarantee the integrity and confidentiality of shared data is essential. Security can therefore add value to a company’s corporate reputation and enhance partner and customer confidence. It makes companies more attractive to potential partners, particularly where responsibility for security and business continuity cascades down the supply chain.
“Enterprises can now reach out to customers, suppliers, distributors, partners and even employees in ways that were unimaginable just a few years ago,” says Ray Stanton. “Effective security is not about fortifying the organisation like Fort Knox. An approach based on thorough and ongoing risk assessment will ensure that the measures put in place are commensurate with the risk involved, and will deliver substantial business agility.”
Finally, adequate security measures help ensure that an organisation stays in line with the demands of legislation as well as industry specific regulations. The Sarbanes Oxley Act, the Basel II Accord and the European Human Rights Act, among others, all require a degree of security for compliance.
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