1E9Ct5D

increased to 73 percent in the 2014 study. Unfortunately, data breaches have alsoincreased in frequency and the cost of response has exploded.Based on current studies, the expected cost per record can be decreased throughformal management of the response plan. The average time to resolve a cyber attack is32 days at a cost of just over $1,000,000. 11 According to research conducted by thePonemon Institute, a formal incident response plan that is in place prior to the incident,can reduce the average cost of a data breach breach by as much as $17 per record.Having dedicated information security officer also can reduce the cost per lost or stolenrecord by another $10. 12In addition to the response cost, which can be substantial, companies also incurdamage to their reputation and stock value. Target put the cost of its December 2013 at$148 million, but it also was forced to lower its full-year earnings forecast in the wake ofthe breach and its stock took a hit. CIO Today, August 24, 2014 13 . Fortunately forTarget, over thirty percent of its response costs were covered by insurance. Id.However, since that initial estimate, a Minnesota court has ruled that consumers candirectly pursue Target for failure to protect their personal information. 1411 2013 Cost of Cyber Crime: United States, Ponemon Institute.12 2014 Cost of Data Breach Study: United States, Ponemon Institute.13 http://www.cio-today.com/article/index.php?story_id=111001SF8BY6.14 In re Target Corp. Data Sec. Breach Litigation, 2014 WL 7192478, 1 (D.Minn.) (D.Minn. 2014).