There is no substitute for preparedness when dealing with data breaches. According to the latest *IBM Security Report from 2024, data breaches result in costs averaging $4.88 million, 10% higher year-on-year. Interestingly, companies that utilize Security AI systems, including automation as a preventative measure, save an average of $2.22 million compared to those that don’t. A full 1/3 of data breaches include shadow data. It is becoming increasingly difficult to safeguard and track data breaches. Preparedness is the flavor of the day. Companies must understand how data breaches occur and learn about the factors that can increase/decrease overall costs.
Automate capture, classification, and data extraction with docAlpha - turn unstructured content into secure, actionable intelligence.
The above statistics were compiled by data collected from 604 organizations and over 3500+ impacted cybersecurity and business leaders. Cyber intrusions can devastate an SMB. However, you can take preventative action to secure the organization against malicious threats. The IBM Security Report shows that 40% of all data breaches involved data stored in different environments. The highest costs associated with data breaches occur in cloud environments at an average cost per breach of $5.17 million. That is a potentially devastating cost that many SMBs simply cannot sustain. Security experts are shifting their focus from reactive to preventative measures. The age-old aphorism holds true – prevention is better than cure!
Recommended reading: AI Automation: What It Is and How It Works in 2025
Preparation isn’t just a checklist, it’s a mindset. When a breach hits, there’s no time to draft contracts or debate next steps. That’s why many companies are investing in a more robust safety net: an incident response retainer with guaranteed rapid support. This proactive agreement ensures your team isn’t scrambling during a crisis. Instead, you have pre-established access to experienced responders who already know your infrastructure and are ready to act, immediately.
A well-structured incident response retainer goes far beyond break-glass scenarios. It often includes regular threat assessments, forensic capabilities, and hands-on investigation to guide remediation. The difference it makes in the first 48 hours post-breach is enormous. With one call, the wheels are in motion. There’s no delay, no waiting for approval, and no ambiguity about who’s responsible for what. This is critical when every minute equals more potential damage.
Companies that prepare in advance with a proper retainer in place tend to contain breaches faster, reduce downtime, and minimize long-term fallout. It’s not about if a breach happens, it’s about when. And when it does, that retainer could mean the difference between a controlled event and a catastrophe.
Protect AP Data with Secure, AI-Driven Workflows
Manual invoice handling increases breach risk. InvoiceAction automates AP from capture to approval — minimizing exposure and strengthening
financial controls.
Book a demo now
Industry | Avg. Cost per Breach (USD) | Relative Risk | Commentary |
Healthcare | $9.77 million | Very High | Highest breach costs globally; sensitive data and life-critical systems at stake. |
Financial | $6.08 million | High | Valuable customer data and regulatory exposure drive costs higher. |
Technology | ~$4.66 million* | Moderate–High | Cloud environments and IP theft add complexity and risk. |
Industrial | ~$4.47 million* | Moderate | Operational downtime compounds breach costs. |
Retail | ~$3.28 million* | Moderate–Low | Frequent target of payment data attacks. |
Public Sector | $2.55 million | Low | Lower financial exposure but high reputational risk. |
Global Average | $4.88 million | Benchmarked across 17 sectors and 3,500+ leaders worldwide. |
Source: Statista
Recommended reading: Managed IT Services: The Safety Net for Busy Enterprises
Think of it this way: As soon as a data breach occurs, your business is hemorrhaging losses. Every hour of indecision takes a tremendous toll on the company. Time can dramatically raise the stakes and the ensuing damage. Delays in response amplify your company’s operational and reputational ruination. It’s not just about the data breach. It’s really about what happens in the aftermath of a data breach. A sluggish reaction often signals disarray. And we know that bad actors love to take full advantage of the chaos. They use the delay to infiltrate, corrupt or commandeer systems, networks, and other high-value targets.
Here’s what can happen when companies hesitate:
Secure Sales Order Processing From the Start
Manual entry creates delay and vulnerability. With OrderAction, automate order capture and ERP sync to reduce errors, protect customer data,
and ensure continuity.
Book a demo now
Worse yet, cybercriminals don’t work in isolation. Delays can allow them to move laterally within the system, infecting other endpoints and escalating the scope of damage. This is how a breach turns from a painful incident into a full-blown crisis. The message is clear: Speed matters. Timely, organized action, rooted in preparedness, can make the difference between recovery and ruin. The results speak volumes, action not inaction saves the day!
Recommended reading: How AI is Transforming Financial Institutions