Banker S.A. July 2014 | Page 48

Photo: Thinkstock TECHNOLOGY: DATA BREACH on the type of data breach your company experiences. The costs that are associated with remediation include forensic activities, assessments and audit services, marketing, crisis team management, and communications to the executive management and board of directors. CONTAINMENT: The cost of notifications will need to include the creation of contact databases, determining the regulatory requirements, engaging with outside experts, postal expenses, alternate contact details in case of email bounce-backs, and inbound communications set-up. POST-DATA BREACH: The typical costs associated with a post-data breach include helpdesk inbound communications, remediation, legal expenditures (civil or otherwise), product discounts, identity protection services, reputation loss, diminished goodwill and the Regulator’s interventions. All industries experience some form of normal churn rate (the number of customers/clients leaving a service offering or company) through the financial year. It will be important to factor in the damage that a data breach can do to a company brand. A data breach will lead to an abnormal increase in churn rates. Abnormal churn rates can lead to a large loss of revenue. The top three industries for abnormal churn rates after a data breach are pharmaceutical, the financial sector and healthcare. An objective of each company should be to limit the costs when the inevitable data breach occurs. Highlighting the influencing factors that the Regulator will take into consideration when determining the fine amount should dictate the approach of your company. 46 BANKER SA Ovations.indd 46 As per the POPI Act, No 4 of 2013, the Regu ]܈\