As an entrepreneur or decision-maker, you possess a unique idea that has the potential to flourish into a lucrative business. However, the journey to success is often accompanied by challenging obstacles.
As your business expands, you need more employees to complete the business tasks effectively. As you onboard more employees, you ensure that each employee will access only the company’s digital assets, which are essential to getting the job done. When this workforce reflects your business growth, it may pose the challenge of identity management.
Identity and Access Management (IAM) is crucial for managing and securing employees’ and customers’ identities. With IAM, employees’ access to sensitive information and resources is limited, which means it ensures that your Human Resources department cannot access financial details and your logistics team cannot access customer data.
Another challenge arises while you are looking for a security architecture for managing employees’ identities. This time, it is managing your customer identities.
Customers trust you with their personal information when they order your product or service. This data is essential to deliver your service efficiently. But it’s about more than just fulfilling the order. You have a legal and ethical responsibility to protect the customer’s data according to government laws. A data breach can cause significant damage to the customer and your business’s reputation.
The global average cost of a data breach in 2023 was USD 4.45 million, a 15% increase over 3 years. (Source: IBM Security, Cost of a Data Breach Report 2023). the consequences of a data breach are not just financial; they can jeopardize your company’s reputation, customer trust, and even its existence. Here’s a compelling snapshot of the risks you face:
- Financial Fallout: The average cost of a data breach globally soared to $3.86 million in 2021, showcasing the staggering economic impact of compromised security (Source: IBM Security, Cost of a Data Breach Report 2021).
- Regulatory Landmines: Non-compliance with data protection regulations, like GDPR, poses a substantial threat, with potential fines reaching up to €20 million or 4% of your company’s global annual revenue (whichever is higher).
- Post-Breach Costs: The aftermath of a breach incurs a direct cost per compromised record, averaging $150 in 2021 (Source: IBM Security, Cost of a Data Breach Report 2021).
- Market Value Erosion: Companies facing data breaches witness a significant average stock price decline of 7.27% within ten days of the announcement, underscoring the impact on market value (Source: Ponemon Institute, 2020 Cost of a Data Breach Report).
- Trust and Customer Loyalty at Stake: A survey by Gemalto reveals that 65% of consumers lose trust in a company that fails to protect their data, directly affecting customer loyalty.
- Customer Churn Conundrum: Following a breach, companies may experience substantial customer churn, with an average of 3.9% of customers leaving within one year (Source: Ponemon Institute, 2020 Cost of a Data Breach Report).
- Reputational Peril: Business decision-makers agree that a data breach is one of the most severe risks to a company’s reputation, with a staggering 69% acknowledging its potential impact (Source: Kroll, 2020 Global Fraud and Risk Report).
- Extended Recovery Periods: Identifying and containing a data breach takes an average of 280 days, illustrating the prolonged period of vulnerability and the subsequent financial impact (Source: IBM Security, Cost of a Data Breach Report 2021).
- Small Businesses in the Crosshairs: Small businesses are frequent targets, and a startling 60% of them face closure within six months of a cyberattack, emphasizing the critical need for robust security measures (Source: U.S. National Cyber Security Alliance).
- Insurance Challenges: Cybersecurity insurance premiums are rising, with some experiencing increases of over 30%, reflecting the escalating frequency and severity of data breaches (Source: Marsh & McLennan, 2020 Cyber Insurance Market Survey).
When collecting customer data is inevitable and protecting it is crucial, then as a business, you should have a robust cybersecurity framework to prevent its database from cyber-attacks. A security architecture that enables your customer to sign in to your system to make a purchase is called Customer Identification and Access Management (CIAM) in the cybersecurity language.
For a business to thrive, you must rigorously manage employee and customer identities. Here comes the job of Identity Management experts who tailor the right solution for your business. The Identity and Access Management experts develop security architecture that ensures that your employees have enough access to the digital assets and your customers’ data are safe and secure.