Torsion Information Security Blog

Exploring the business and technical implications of information security.

How to calculate the cost of a data breach

How to calculate the cost of a data breach Torsion Information Security

This method of activity-based costing incorporates a range of activities and their associated costs of a data breach:

Detection and escalation – Activities that enable a company to detect a breach.
— Forensic and investigative activities
— Assessment and audit services
— Crisis management
— Communications to executives and boards

Notification – Activities that enable the company to notify all parties involved and affected
— Emails, letters, outbound calls or general notice to data subjects
— Determination of regulatory requirements
— Communication with regulators
— Engagement of outside experts

Lost business – Activities that aim to mitigate the loss from a data breach
— Business disruption and revenue losses from system downtime
— Cost of lost customers and acquiring new customers
— Reputation losses and diminished goodwill

Ex-post response – Activities to help victims of a data breach
— Help desk and inbound communications
— Credit monitoring and identity protection services
— Issuing new accounts or credit cards
— Legal expenditures
— Product discounts
— Regulatory fines

Torsion software precedes all of these cost centres as it monitors and controls data access automatically, preventing and highlighting any potential data breaches.

Contact us at to significantly reduce your cost of a data breach.

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