John McLoughlin | CEO | J2 Software | mail me |
Insider risks pose a growing and formidable threat to organisations. The DTEX 2023 Cost Of Insider Risks Global Report sheds light on the alarming surge in the costs associated with insider risks, urging a shift from reactive to proactive strategies.
In 2023, the average annual cost of an insider risk rose to a staggering $16.2 million per organisation, with an average of 86 days needed to contain an incident.
The escalating cost of insider risks
The financial burden intensifies post-incident, with containment and remediation being the most costly activities, averaging $179,209 and $125,221 per incident, respectively.
Remarkably, the longer it takes to respond, the higher the cost, reaching a startling $18.33 million for incidents that take longer than 91 days to contain. Notably, non-malicious insiders are the predominant culprits, accounting for 75% of incidents, mostly attributed to negligence or mistakes.
Funding misdirection – a major hurdle
Despite the alarming surge in insider risks, a significant issue persists: inadequate allocation of cybersecurity budgets to address these threats.
A staggering 88% of organisations allocate less than 10% of their IT security budget to insider risk management, focusing primarily on external threats. Yet, social engineering, often perpetrated by malicious insiders, remains a leading cause of external attacks.
A glimpse of hope – shifting towards proactivity
Acknowledging the need for change, 58% of organisations affirm that current funding for insider risk management is inadequate. Encouragingly, nearly half of these organisations (46%) plan to increase investments in insider risk programs in 2024.
This signifies a growing realisation of the necessity to prioritise the human element in cybersecurity strategies and move from being reactive to proactive.
Signs of vulnerability
To identify potential risk areas within an organisation, recognising the following key signs is crucial:
- Lack of employee training
Insufficient knowledge of laws, mandates, and security policies.
- Inadequate device security
Employees failing to ensure secure usage of company and BYOD devices.
- Unsecured data transfer
Sending sensitive data to unsecured cloud locations.
- Policy circumvention
Employees bypassing security policies for task simplification.
- Outdated devices and services
Failure to keep devices and services patched and upgraded.
The path to proactive risk mitigation
Addressing insider risks proactively requires a multifaceted approach. First and foremost, organisations must invest in comprehensive insider risk programs.
Having a dedicated team and top-down support are crucial elements in a successful program. Furthermore, insider risk management should not solely fall under the purview of IT security; legal and risk and compliance departments should also play significant roles.
Embracing artificial intelligence – the game changer
To achieve proactive risk management, embracing artificial intelligence (AI) and machine learning (ML) is crucial. An overwhelming 64% of organisations regard AI and ML as essential in preventing insider incidents. AI empowers analysts to detect early warning signs, analyse behaviour, and provide automated education and awareness communications, particularly for non-malicious insiders.
In conclusion, the spiralling costs and frequency of insider risks necessitate a fundamental shift in approach. It’s time to redirect cybersecurity budgets towards proactive insider risk management, leveraging the potential of AI and ML.
By understanding and mitigating insider risks before they escalate into costly incidents, organisations can ensure a more secure and resilient digital landscape.
