The Cost of a Data Breach

Data breaches have become a major concern for businesses in India, with the number of reported incidents on the rise. According to a report by the Indian Computer Emergency Response Team (CERT-In), there were over 12,000 cyber incidents reported in India in 2020, a significant increase from previous years. The cost of a data breach can be significant for businesses of all sizes, and it's crucial for Indian companies to take steps to protect themselves, especially small businesses, MSMEs, and start-ups.

Small businesses, MSMEs and start-ups are particularly vulnerable to data breaches due to their limited resources, lack of cyber expertise and often less mature security processes. A data breach can result in significant financial losses for these businesses, as well as damage to their reputation and loss of customers.

One of the main causes of data breaches in India is cyber attacks. These can come in many forms, such as malware, phishing scams, and ransomware attacks. In 2021, there have been several high-profile attacks on Indian companies, including the ransomware attack on JBS India, one of the country's largest meat processing companies. The attack resulted in the shutdown of operations and a loss of revenue. Small businesses, MSMEs, and start-ups are particularly vulnerable to these types of attacks due to their limited resources, lack of cyber expertise and often less mature security processes.

Another common cause of data breaches in India is human error. This can include employees falling for phishing scams, or accidentally exposing sensitive information. A recent example is the data leak of personal information of millions of Indian citizens from a government database in 2020. Small businesses, MSMEs, and start-ups are particularly vulnerable to these types of errors as they may have less security-conscious employees.

In addition to the financial losses, data breaches can also result in damage to a company's reputation and loss of business. The negative publicity that follows a data breach can lead to a loss of trust among customers, partners and investors. In India, it has been observed that companies that suffer a data breach are often forced to face negative publicity, which can lead to loss of customers and revenue. Small businesses, MSMEs, and start-ups are particularly vulnerable to these consequences as they may not have the resources to bounce back from a data breach.

To protect your business from the cost of a data breach, it's essential to have a comprehensive cyber security strategy in place. This includes implementing robust cybersecurity measures, training employees on security best practices, and having a response plan in place in case of an attack.

Raghnall Insurance Broking & Risk Management has recently launched an all-in-one solution for protecting against cyber risks, Business Cyber Shield, which can be a great option for Indian companies