The greatest fear of any CEO, CIO or CSO is that the security of the sensitive information held by their company has been compromised. The first consideration should be given to the customer; after all, it is their privacy which has been invaded. After dealing with this, there is the nightmare of all the costs which your company will incur as a result. The average cost to a company resulting from a data breach in 2007 was $6.3 million!
A survey conducted by the Ponemon Institute found that 58% of respondents who had received notification that their personal information had been compromised by a data breach had lost confidence in the company and that 31% planned to cease doing business with the company. The cost of notification alone may come to as high as $197 per letter.
Most states now have laws regarding privacy protection in place requiring companies to notify all customers, vendors and employees in the event that personal information has been compromised by a data breach. There are federal laws such as SOX, FACTA, HIPAA and GBL which lay out the responsibilities of companies with regards to the protection on personal information including medical records, credit card inf

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