How Much Does a Security Breach Cost?
Understanding the impact of physical security incidents
When it comes to physical security incidents, the immediate cost of the incident is something that is easy to identify, such as stolen items or property damage. However, there are other impacts a security incident can have on the business and individuals alike that extend far beyond the incident itself, which begs the question, “How much does a security breach cost?”
In this blog, we will uncover the additional costs of a physical security incident that are often overlooked, and discuss solutions for mitigating the risks and costs of a security breach.
Added Costs Associated With a Physical Security Breach
The cost of a physical security incident can vary depending on several factors such as the severity of the incident, the location, the assets involved, and the type of business. The total cost of a physical security incident can range from a few thousand dollars to millions of dollars, depending on the severity and scope of the incident. However, there are general estimates of additional costs associated with physical security incidents that need to be discussed.
Costs associated with a physical security breach include:
- Loss of assets:
The cost of replacing lost or stolen assets such as equipment, inventory, or cash. Theft and burglary are ranked as one of the most common physical security breaches for businesses in the past year. Over half of the retailers in the U.S. have experienced theft, with employee theft costing businesses around $50 billion each year.
- Property damage:
The cost of repairing or replacing damaged property as a result of the incident, such as doors, windows, or security cameras.
- Legal fees:
The cost of legal representation in the event of lawsuits or claims resulting from the incident.
- Investigation costs:
The cost of investigating the incident to determine the cause and prevent future occurrences.
- Business interruption:
The cost of lost revenue due to downtime, lost productivity, or disrupted operations during investigations and repairs.
- Reputation damage:
The cost of damage control includes negative publicity, loss of customer trust, potential damage to the company’s reputation, and even loss of business altogether. In fact, reputational damage costs can be seen as one of the most costly in terms of property and liability claims due to their long-term effects.
- Personnel turnover:
The cost of having to hire and replace employees who leave the workplace because they feel unsafe.
It’s clear that security breaches can cost a business millions of dollars in physical assets lost, investigation costs, and lost revenue. To prevent and mitigate the risk of security incidents, it’s important for businesses to have comprehensive physical security measures in place.
How to Reduce Risks and Costs of a Security Breach With SecuritimeSecuritime is a multi-vendor security optimization platform that provides your business with the tools to limit liability and costs associated with incidents. Track security officer time and attendance as well as incident reporting in real-time to gain greater visibility into the performance of your security programs. This means your business can quickly identify coverage gaps, security vulnerabilities, and areas of greater threat so your security personnel can act promptly and provide proactive solutions for mitigating risk in the future.
- Accurate time and attendance tracking Securitime collects real-time accurate security officer punch data with location routing so you can see which sites are covered or not. If an officer is tardy, Securitime will send alerts in real-time to key stakeholders notifying them when a post is left unattended and at risk, enabling security personnel to take action quickly. Not only does this help identify location coverage gaps, but users of the Securitime platform have uncovered anywhere from a 10% to a 24% discrepancy between contracted and actual hours worked, allowing you to maximize your security investments!
- Streamlined incident reporting Using Securitime’s web-based app, security officers can use a simple template to report incidents in real-time from their phones. Officers can easily attach photos, or submit voicemail reports, making it easy to quickly collect incident information on the spot. When an incident occurs, real-time alerts are sent to key stakeholders informing them of security threats. Securitime also provides an archived list of past incident reports so you can identify high-risk areas that require additional safety measures and implement solutions to prevent future incidents in that area.
Coming back to the question, “How much does a security breach cost?” it’s essential to consider the apparent costs of the incident, in addition to the hidden costs that may have long-lasting effects on businesses and individuals. From property damage and business interruption to legal consequences and reputation damage, the financial impact extends beyond the immediate aftermath of a security breach.
By investing in a platform that helps uncover security program vulnerabilities, businesses can optimize security performance, offer proactive solutions to mitigate these risks and protect themselves from the often-overlooked consequences of physical security incidents.
Interested in learning more about how Securitime can increase security incident visibility? Request a demo today with the form below.