- Estimates that companies will take 80 days to recover and suffer a 9.5% revenue drop
- Less than half of executives say preventing a security attack is a board-level topic
The cost of recovering from of a security breach for UK organisations has been estimated in a new report launched today by NTT Security, the specialised security company of NTT Group. The 2017 Risk:Value report, the company’s third annual study of business decision makers’ attitudes to risk and the value of information security to global organisations, reveals that a UK business would have to spend £1.1m ($1.4m) on average to recover from a breach – more than the global average of £1m ($1.3m), which has gone up from the previous report’s $907,000 estimate.
The study of 1,350 non-IT business decision makers across 11 countries, 200 of which are from the UK, also reveals that respondents anticipate it would take, on average, almost three months (80 days) to recover from an attack, almost a week longer than the global average of 74 days. UK respondents also predict a significant impact of their organisation’s revenue, suggesting as much as a 9.5% drop, which fares slightly better than the global average of nearly 10%.
In the UK, business decision makers expect a data breach to cause short-term financial losses, as well as affect the organisation’s long-term ability to do business. More than two-thirds (64%) cite loss of customer confidence, damage to reputation (67%) and financial loss (44%), while one in 10 anticipate staff losses, and 9% expect senior executives to resign following a security incident.
Most telling from the report is that63% of respondents in the UK ‘agree’ that a data breach is inevitable at some point, up from the previous report’s UK figure of 57%. However, less than half (47%) say that preventing a security attack is a regular board agenda item, suggesting that more still needs to be done for it to be taken seriously at a boardroom level in the UK.
Linda McCormack, Vice President UK & Ireland at NTT Security, comments: “Companies are absolutely right to worry about the financial impact of a data breach – both in terms of short-term financial losses and long-term brand and reputational damage. Although this year’s £1.1m figure is slightly down on last year’s report (£1.2m), no company, regardless of its size, sector or focus, can afford to ignore the consequences of what are increasingly sophisticated and targeted security attacks, like the widespread and damaging ransomware attack we recently witnessed.“
On a positive note, an encouraging 72% of UK business decision makers say their organisation has a formal information security policy in place, compared to the global average of over half (56%) and another 16% are in the process of implementing one. But while 83% say it has been communicated internally, less than one third (31%) say company employees are fully aware of the policy.
The study also raises concerns over the use and sharing of incident response plans for when a breach does happen. Around two-thirds (65%) of UK respondents say their organisation has an incident response plan, well above the global average of 48%. However, less than half (44%) of business decision makers in the UK are fully aware of what the incident response plan includes.
“Creating security policies seems to be a work in progress for many UK businesses, unfortunately they become redundant if they are not properly communicated and shared throughout the whole organisation, and sadly this report backs that up. We see time and again organisations with good intentions when it comes to security and response planning, but then it falls to the bottom of the priority list due to a lack of resources, budgets and time. The fact that they are struggling to find the right resources and processes to support the fundamentals in information security and risk management planning is a major concern,’’ adds McCormack.
On the subject of budget, according to UK respondents, only an estimated 14.4% of their organisation’s operations budget is spent on information security, and 13.7% of their IT budget is estimated to be spent on security. This compares to 15.5% and 14.6% respectively across all of the countries surveyed. More than a third in the UK say their organisation is spending less on information/data security than R&D (36%), HR (36%) and Marketing (36%).
BBVA may cut 3,000 jobs in Spain, Expansion says
MADRID (Reuters) – Spain’s BBVA is considering cutting around 3,000 jobs in its home market, or around 10% of its staff there, to adapt to the rise in online banking, newspaper Expansion reported on Wednesday, citing sources with knowledge of the matter.
BBVA declined to comment.
Last month, the bank’s chief executive officer Onur Genc told analysts the lender was looking into cost-cutting plans for low growth geographies, “including a fast restructuring programme (in Spain)” in the first half of 2021.
Spanish and European lenders are pursuing different alternatives to cut costs, either through tie-ups or on a standalone basis, as they grapple with the effects from the COVID-19 pandemic and ultra low interest rates.
BBVA’s net profit in Spain fell 48% in the fourth quarter against the same quarter of 2019.
A spokeswoman for Comisiones Obreras, the biggest union at BBVA, said on Wednesday negotiations or meetings with the bank on potential job cuts had not started yet.
BBVA has around 29,300 employees in Spain out of around 123,000 globally.
The cuts would be roughly in line with similar measures taken by other Spanish lenders.
BBVA’s main competitor in Spain, Santander, last year announced it would lay off nearly 3,600 employees and cut around 30% of branches in the country.
(Reporting by Jesús Aguado, Editing by Inti Landauro and Mark Potter)
Puma forecasts strong rebound from end of second quarter
BERLIN (Reuters) – German sportswear company Puma said on Wednesday it expects a heavy impact on its results from lockdowns to contain the coronavirus pandemic through the end of the second quarter, but said it sees strong improvements after that.
“We do expect the negative impact to continue through the first and parts of the second quarter, but expect to see an improvement in the second half of the year,” Chief Executive Bjorn Gulden said in a statement.
For the full year, it expects at least a moderate increase in sales in constant currency, with an upside potential, and a significant improvement compared with 2020 for both its operating and net profit.
Fourth-quarter sales rose by a currency-adjusted 9.1% to 1.52 billion euros ($1.85 billion) and operating profit by 14.6% to 63 million euros, meeting average analyst forecasts for 1.52 billion and 62 million euros respectively.
Puma said growth in the fourth quarter was driven by Greater China and its Europe, Middle East and Africa region, despite lockdowns in Europe, noting that about half of the stores selling its products in Europe are still closed today.
Rival Nike in December raised its full-year sales forecast after COVID-wary shoppers demanding outdoor sportswear drove its third consecutive surge in online sales.
($1 = 0.8226 euros)
(Reporting by Emma Thomasson; Editing by Maria Sheahan)
Vodafone’s Vantage Towers announces intention to float
LONDON (Reuters) – Vantage Towers, the mobile infrastructure company spun out of Vodafone Group, on Wednesday announced its intention to float on the Frankfurt Stock Exchange by the end of March.
Vantage operates about 82,000 towers across 10 countries, where it is usually the leading or second largest supplier.
Vodafone said it would sell a “meaningful minority” to create a liquid market in Vantage Towers’ shares. No newly created shares will be on offer, meaning Vantage will not reap proceeds from the deal.
The company did not disclose how many shares will be offered, but people familiar with the matter said earlier this month, that stock worth about 3 billion euros ($3.65 billion) would be sold.
Vantage said late last year that it expects to report pro forma adjusted core earnings of up to 540 million euros in the financial year to the end of March 2021.
Rival telecom mast companies such as Cellnex, American Tower, Crown Castle and SBA Communications trade at 25 to 30 times their core earnings, which would imply a valuation of 13.5 billion to 16 billion euros for Vantage.
($1 = 0.8226 euros)
(Reporting by Paul Sandle and Arno Schuetze; editing by Sarah Young and Louise Heavens)
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