The costs of poor cybersecurity compliance management are much more than those associated with compliance reporting and process optimization. If your organization is hesitant about the cost of implementing a comprehensive compliance program, compare that to the rising cost of non-compliance.
- The two biggest contributing factors for the cost of non-compliance are business disruptions and productivity loss. Other factors include revenue loss, fines, and penalties. The average cost an organization may experience for a noncompliance event has increased 45% from 2011 to an average of $14.82 million, which can vary by industry. (Source)
- Since the beginning of the pandemic in 2020, the cost of financial crime compliance has risen by double digits, with U.S. financial institutions noting the largest change. In 2022, for example, the projected cost of financial crime compliance was estimated to be about $274.1 billion. (Source)
- Payment brands can assess a monthly fine of $5,000 to $100,000 per month on an acquiring bank, which will likely be passed down to the merchant. Being out of compliance risks the termination of the relationship, which can be disastrous for smaller organizations. (Source)
- The average large company utilizes over 175 applications to operate their business. Improper visibility into these systems can lead to the opportunity for breaches or other non-compliance events. The cost of properly maintaining necessary controls or systems can add up over time, but is necessary for a strong security posture. (Source)
- Compliance costs, or the costs of maintaining proper compliance standards on an ongoing basis, can cost about $5.47 million for a company. Compare to the average $14.82 million in productivity loss, revenue loss, and fines that a non-compliance event can incur. (Source)
- $3 million can be saved by properly centralized data governance. (Source)
The Benefits of Investing in Compliance
From loss of revenue due to business disruption, to productivity issues, to fines, the cost of non-compliance can add up quickly. Investing in proper controls and monitoring for cybersecurity compliance from the beginning. Compliance audits are just one tool your organization can use to reduce the negative consequences of non-compliance.
The experienced cybersecurity compliance audit team at Auditwerx is here to support your organization. Experience the Auditwerx difference – contact us today.
