The consequences of ransomware are severely damaging to any business. Productivity and reputation are all compromised when ransomware strikes, whilst financial losses can be extremely costly.
It is widely accepted that ransomware encrypted data is unrecoverable. This leads to a severe disruption in productivity as business critical data is lost. Without databases, emails, customer records, sales materials, invoices and financial information, many people within the organisation will not be able to carry out their job role, therefore overall business function comes to a halt. Further to this, valuable employee time may be lost when data has to be re-entered or re-typed.
When ransomware hits, it is guaranteed that your organisation will also experience a financial loss. Some organisations choose to pay the ransom, which can cost thousands of pounds – with no guarantee that data will be recovered. There will also be costs incurred during incident response, as infected computers will have to be wiped or replaced and a reactive security solution will need to be implemented. Fines and penalties may also be incurred for non-compliance if sensitive data is lost. However, by far the most costly outcome of an attack is downtime. For a small organisation of around 30 people, the cost of downtime will be around £800 per hour. With disruption from ransomware lasting anything between 1 and 5 days, downtime costs for a business of this size can be between £5,000 and £25,000. For larger companies, the costs can be even higher; a mid-sized organisation of 100 people could lose between £20,000 and £100,000 in downtime, whilst a large organisation or regional hub of a multi-national could lose around £100,000 per day. To read more about the costs of downtime, please take a look at our recent blog article “The potential costs of company downtime.”
Finally, ransomware attack can also be costly in terms of company reputation. Customer and stakeholder confidence is often lost when sensitive data is in the hands of cyber criminals. Reputation may also be damaged through loss of accreditation – data breaches will mean that you are no longer compliant with industry regulators which in some cases will result in removal of accredited status. Added to this, with the 2017 introduction of new European Data Regulations, companies will be under increased pressure to prove that copies of customer data have not been taken.
It is important to understand that when ransomware strikes, your company will experience financial loss, reduction in productivity and damage to its reputation, which is why mitigating these costs is so important.
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