Canadian companies’ attitudes to data risk explored

A recent Fusepoint/Sun Microsystems/Leger Marketing survey reveals that 55 percent of Canadian companies say that their confidential and private data is at risk of an attack, despite the fact that most consumers (58 percent) would immediately terminate their relationship with a company that compromised their personal information.

Poll results also showed that more than one in 10 Canadian consumers (14 percent) believe they have already been a victim of identity theft with 38 percent of respondents saying they know someone who has been a victim of identity theft. In addition, 74 percent of consumers believe that everybody - including those possessing advanced technological know-how - is at equal risk of identity theft.

"With the exponential growth in the volume and sophistication of online threats, executives must heed their customers' calls to take the necessary steps to protect their data and infrastructure from being compromised," said George Kerns, president and CEO, Fusepoint Managed Services. "This is not a simple business issue. It's a fundamental matter of trust."

"Smart enterprises know security and privacy are good for business, and yet many companies in Canada and around the world don't take this message to heart," said Andy Canham, president of Sun Microsystems of Canada Inc. "Any business that values their customer base will invest in systemic security practices that ensure they manage security risks, and meet compliance regulations, as well as achieve business growth goals."

The origin of attacks
The survey findings showed that business leaders believed that the greatest threat to their data security would not come from a malicious external attack, but rather from the hands of an uninformed employee. The research showed that 46 percent of respondents said that employees who accidentally download security-compromising viruses, spyware or adware pose a greater data security risk to a company than external agents like hackers, cited next at 40 percent. Another 14 percent believed the greatest threat would come from disgruntled employees who gain unauthorized access to information.

Additional findings:

Security breaches and influence on brand value
- Nearly all business leaders and decision-makers (98 percent) believe it is important for a company to ensure that any sensitive data is protected against improper activity.

- The majority of respondents (69 percent) say that a data security breach would have an impact on their brand, even among small business operators.

- 37 percent of Canadian consumers would seek legal action against a company that stored their personal information if it was compromised.

- The majority of consumers (83 percent) are concerned about the privacy of personal information that is currently stored in online databases.

- More than one in 10 Canadian consumers (14 percent) believe they have already been a victim of identity theft.

Limited confidence in the IT department
- Most decision makers (57 percent) were only somewhat confident at best in their IT department's ability to withstand an attack.

- Most businesses (96 percent) use some form of data protection technology:

* 92 percent use antivirus software;

* 85 percent have firewalls in place;

* 43 percent say they use encryption technology; and

* 29 percent say they use outsourced or managed security services from a third-party provider.

Compliance and legislation
- 56 percent of business leaders feel that changing compliance and legislation requirements will affect the way that their company manages private data.

- Just over half (56 percent) of Canadian businesses have mechanisms in place to address customer or employee questions or complaints about protecting data.

Bottom line impact of an attack
- More than a third of all business leaders (38 percent) have no idea what the dollar value associated with a security breach would cost their company.

- 27 percent of large business leaders estimated a security breach might cost their business over $1 million dollars.

www.fusepoint.com
www.symantec.ca
ca.sun.com

•Date: 25th Nov 2005 • Region: N.America • Type: Article •Topic: ISM
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