Many companies have a hard time with managing data and how it moves across organisations – or more commonly, how it doesn’t. The result is that big corporations and large financial institutions like banks often end up unintentionally segmented into silos. They then operate de facto as several smaller companies – with data becoming the source of the divide.
This siloed data presents a serious security risk that we’ve read about all too often, but even more so, it becomes an enormous resource-drain and investment. With complexity of compliance and regulations rising, databases multiplying, and costs sunk into maintenance and upgrades of cybersecurity infrastructure, companies’ ability to manage risk deteriorates and negatively affects the bottom line. We all know that risk often ends up costing companies money. So how can organisations stop the loss, or better yet, turn it into a potential revenue stream?
Traditionally, companies estimated risk based on potential regulatory issues (among other considerations) – in other words, what happens if a company is caught in a reporting irregularity. But there’s another figure on the balance sheet that CFOs have been hesitant to look at: the price of security to counterbalance the risk.
This conversation is now evolving drastically compared to conversations a mere five years ago. Technological and procedural factors are rapidly changing the traditional risk model, adding further dimensions. Security must now be incorporated into risk calculations in some capacity. Compliance can no longer be hidden and distributed within the balance sheet – it’s now an increasing cost.