By now, most people have heard about the hacking incident at JP Morgan and its subsidiaries. In the article ‘JPMorgan Will Double Cybersecurity Spending But Many Other Companies May Cut Costs,’ author Renee Caruthers discusses the company’s response to hacking incident which affected the company over the summer of 2014. CEO Jamie Dimon announced that JP Morgan intends to double its cyber security-related spending over the next five years in order to avert further incidents.
However, unlike Dimon and JP Morgan, Caruthers reports that many firms, ranging from small to large firms, have or plan to reduce cyber security-related spending. This, Caruthers observes, is troubling, given the data available on cyber security incidents. This data, taken from PwC’s Global State of Information Security Survey 2015, suggests a trend of increasing attacks and increasing costs as a result of those attacks. The article concludes with examples of these increasing trends, including the detail that organizations reporting $20 million or more in losses related to cyber security attacks almost doubled over 2013.
Reading that some organizations are reducing their spending on cyber security related issues seems irresponsible and inadvisable. That last bit of data, about how losses had doubled over 2013, is troubling. It seems that these organizations should appreciate how investing in securing their cyber borders will, over the long run, prevent such potentially catastrophic financial losses, never mind the potential damage to their reputations. JP Morgan and Dimon are responding appropriately; through their cyber security event, they have behaved ethically and intelligently.
I think that JP Morgan will see that their reputation will not be too damaged by the event, and their efforts to reduce or prevent further incidents will help them prevent future losses and soothe the fears of their customers and partners.
- Caruthers, R. (2014, October 14). JPMorgan will double cybersecurity spending but many other
companies may cut costs. FierceFinanceIT. Retrieved from http://www.fiercefinanceit.com/story/jpmorgan-will-double-cybersecurity-spending-many-other-companies-may-cut-co/2014-10-14