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ABC, Inc. has 30,000 employees. It has outsourced all its HR data processing. However, there is a concern about the potential of a security breach
ABC, Inc. has 30,000 employees. It has outsourced all its HR data processing. However, there is a concern about the potential of a security breach at one of these vendors. A single data breach incident involving employee PII could have a direct financial impact of $99/record breached and an indirect financial impact of $179/record breached. ABC, Inc. has never really gone beyond asking for self-assessments from its vendors of their efforts to control the risk of PII compromise. Historical data suggests that there is roughly a 5% chance of a data breach during a year and that 100% of the employees are affected. ABC has two options: a. Make their current "secure vendor" program much more robust. A more robust and continuous "secure vendor" program could lower the probabilities of a large-scale breech by 30%. The annual cost of is expected to be about $300,000 for a robust "secure vendor" program for their HR vendors. b. Add a data loss prevention tool (DLP) and insist on its installation on the systems of their HR-related vendors as well, though ABC, Inc. would have to pay for it. A DLP tool would reduce risk by 80%. Mary's initial inquiry into costs to
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