The average annual cost of insider risk incidents has seen a significant increase of 40% over a four-year period, reaching $16.2 million in 2023 compared to $15.4 million in 2022. This rise amounts to $800,000. Furthermore, the number of insider incidents has also risen [2], with a total of 7,343 incidents in the past year, indicating an increase of 540 incidents.
Description
It takes an average of 86 days to contain an insider incident [1] [2], with containment and remediation being the most costly activities [2], amounting to $179,209 and $125,221 per incident, respectively [2]. Incidents that take longer than 91 days to contain incur even higher costs [1], reaching $18.33 million, surpassing the annual costs faced by organizations that are able to contain incidents within 91 days. It is worth noting that organizations allocate less than 10% of their IT security budget to insider risk management, with only 8.2% specifically designated for insider risk management programs and policies [1]. The majority of the insider risk budget is spent after an incident has occurred [1], with only 10% allocated to pre-incident activities such as monitoring and surveillance [1]. However, 58% of organizations consider current spending inadequate and anticipate an increase in funding for insider risk programs in the coming year.
Conclusion
These findings highlight the significant financial impact of insider risk incidents, with costs steadily increasing over the years. It is crucial for organizations to prioritize containment and remediation efforts, as prolonged incidents result in even higher expenses. The current allocation of budget towards insider risk management is deemed insufficient by a majority of organizations, indicating the need for increased funding in this area. By investing in proactive measures such as monitoring and surveillance, organizations can potentially mitigate the occurrence and severity of insider risk incidents.
References
[1] https://www.businesswire.com/news/home/20230920895896/en/Global-Cybersecurity-Study-Cyber-Budgets-Failing-to-Address-Root-Cause-of-Data-Breaches-Insider-Risks
[2] https://www.infosecurity-magazine.com/news/annual-cost-insider-incidents-per/
