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February 2018, Vol. 20, No. 1

Data protection compliance costs less than noncompliance

Research has shown that having a CISO can lower the cost of a data breach. But is there an effect on the cost of data protection compliance? In many industries, the value of data is increasing, and so is the cost of protecting sensitive and confidential information. Regulatory scrutiny of information security is higher in industries such as financial services and healthcare, but that doesn't mean other companies are off the hook. In addition to PCI DSS, HIPAA and state data-breach notification and privacy laws, international businesses now face the European Union's General Data Protection Regulation (GDPR), which takes effect in May 2018. Smaller companies -- with fewer than 5,000 employees -- in particular may be hit hard by data protection compliance costs. In a December 2017 report, "The True Cost of Compliance with Data Protection Regulations," the Ponemon Institute interviewed 237 functional leaders at 53 multinationals located in the United States and found that the average cost of compliance in fiscal year 2017 was $5.47 ...

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