Introduction

The negative impacts of cyberattacks can have a wide range of hidden and often underestimated costs that go beyond the immediate financial impact. When cyberattacks force you to shut down or severely limit computer systems, as in the cases of Clorox and MGM, it disrupts normal business operations. Employees may have to resort to manual processes, which are often slower and more error-prone. This can result in missed deadlines, delayed deliveries, and customer dissatisfaction.

In addition to the direct financial losses from the cyberattack, you may lose revenue due to downtime. For example, MGM had to offer free rebooking or cancellations to customers, resulting in additional revenue losses. Customers may also lose trust in your company, leading to a long-term decline in business.

Impacts

Recovering from a cyberattack can be a lengthy and expensive process. It is important to invest in cybersecurity experts, forensic analysis, and the restoration of systems. In some cases, you may need to purchase new hardware or software to replace compromised systems. You may face legal actions and regulatory fines depending on the nature of the breach and the data involved. The cost of legal defense, settlements, and regulatory penalties can be costly. After a significant cyberattack, you may see an increase in their cybersecurity insurance premiums, adding to ongoing costs.

Cyberattacks can damage your company’s reputation, leading to a loss of trust among customers, partners, and investors. Rebuilding trust can be a long and costly process, and some businesses may never fully recover their reputation. The value of your company’s brand can also be eroded by a cyberattack. This can impact your ability to attract customers and partners, affecting long-term profitability. Investors may lose confidence, leading to a drop in stock prices and difficulties in raising capital. Customers may choose to take their business elsewhere after a cyberattack, especially if their personal information is compromised.

If your company is part of a larger supply chain, a cyberattack can disrupt the operations of downstream and upstream partners, causing further economic impact. If intellectual property is stolen during a cyberattack, it can result in the loss of competitive advantage and future revenue. The effects of a cyberattack can linger for years. Security measures may need to be significantly enhanced, and ongoing monitoring and mitigation efforts can lead to increased operational costs.

Defense

When defending against cyberattacks, you can tailor your cybersecurity strategy by selecting and implementing the standards and frameworks that align with your specific needs, industry regulations, and risk profiles. Here are some widely recognized standards and frameworks that help you defend against cyberattacks:

ISO 27001 (Information Security Management System – ISMS): ISO 27001 is a globally recognized standard for establishing and maintaining an information security management system (ISMS). It provides a framework for your organization to identify, assess, and manage information security risks. ISO 27001 is applicable to organizations of all sizes and industries and is highly regarded for aligning your information security practices with international best practices.

ISO 27004 (Security Techniques – Information Security Management): ISO 27004 complements ISO 27001 by providing guidance on measuring the effectiveness of your ISMS and its performance with regard to information security objectives and metrics. It helps your organizations evaluate their information security performance and make improvements as needed.

NIST SP 800-53: The National Institute of Standards and Technology (NIST) Special Publication 800-53 provides a comprehensive set of security controls and guidelines primarily aimed at federal agencies and contractors. These controls cover various aspects of information security and privacy, helping you safeguard your information systems while ensuring the integrity, confidentiality, and security of federal information systems. Compliance with NIST 800-53 is essential for Federal Information Security Management Act (FISMA) compliance.

Cybersecurity Maturity Model Certification (CMMC): CMMC is specifically designed for organizations in the Defense Industrial Base (DIB) that handle Controlled Unclassified Information (CUI) for the U.S. Department of Defense (DoD). It aims to enhance cybersecurity across the DIB supply chain by ensuring organizations can protect sensitive unclassified information. CMMC certification is required for all organizations in the defense contract supply chain, with different levels (from 1 to 5) depending on the sensitivity of the information they handle.

Conclusion 

The hidden costs of cyberattacks highlight the importance of investing in robust cybersecurity measures to prevent and mitigate the impact of cyberattacks. To reduce cyber risk effectively, your organization should assess its specific needs and regulatory requirements and consider implementing a combination of these standards and frameworks. It’s important to note that compliance with these standards not only reduces risk but can also enhance your organization’s reputation and competitiveness in the marketplace.

While the immediate financial losses are evident, the long-term, indirect costs often have a more significant and lasting impact on organizations affected by cyberattacks. Check out our article to learn more about how to Improve Cybersecurity and Reduce Cyber Threats. If your organization is ready to improve cybersecurity practices while preventing cyber risks, we have the methods to help ensure your management system’s success. Contact our expert consultants to learn more about our ISO 27001 and CMMC consulting and auditing services at 832-326-9796 or info@iso9001group.com.

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Author

Christina Gamache | Office & Marketing Coordinator