According to research by the Ponemon Institute and sponsored by IBM, data breaches in Canada cost more to remediate than in most other countries in the world.
The study examined data breaches in twelve countries. The report dealing with Canada, titled “2015 Cost of Data Breach: Canada”, determined that the average cost of breach is $250 per compromised record, or about $5.32 million per incident. The report broke down the $250 per capita cost as follows:
• $91 for detection and escalation costs
• $67 for post data breach response
• $84 for lost business
• $8 for notification
The study also found that certain industries had higher data breach costs than others. Coming out above the average were financial, services, technology and energy, whereas public sector, education, and consumer organizations had costs below average.
Although this is the third year for this study, it was the first that included Canada. Compared to other countries in the study, Canada ranked the third highest for per capita data breach costs, closely following the United States and Germany. Normalized in U.S. dollars, Canadian data breaches cost $207 per record, compared to the average for the twelve countries of $154 per record.
Several theories were put forth in the study to explain the high cost in Canada. Nevertheless, it is clear that a single data breach could see an organization outlaying millions of dollars. Thanks to this study, the cost-benefit of implementing an Information Governance plan to mitigate the risk can be quantified.