IBM Systems Magazine, Mainframe - July/August 2014 - 40

IT Risk is the largest independent
research study measuring the
financial and reputational
consequences of business
disruptions caused by business
continuity or IT security failures.
"This study was unlike any
other study we've previously
done," Corcoran says. It's an effort
to help clients understand risk so
they can address potential threats
and improve the resiliency of
their businesses. "The main point
of this is that every company's
reputation is critical," he adds.
Larry Ponemon, chairman and
founder of the Ponemon Institute,
says IBM's recognition of the
need to raise awareness of the
importance of business continuity
and IT risk management is the
driving force behind the survey.

The Findings

@

The Ponemon
Institute
surveyed:
1,069 business
continuity
specialists and
1,247 IT security
practitioners
representing
20 industries
and 37 countries
Human error
is the cause
of 70% more
disruptions than
IT professionals
anticipate

The results of this study were
used to quantify the economic
impact of IT failures in terms of
the cost to an organization when
a failure occurs. Respondents
were asked to estimate the
cost of a failure based on three

categories: minor, moderate and
substantial. The respondents
indicated that failure at the
minor level of downtime lasts
an average of 19.7 minutes.
Moderate and substantial
levels last an average of
111.8 and 442.3 minutes,
respectively. Sixty-nine percent
of the respondents said their
companies would likely have
a minor disruption in the next
24 months, while 37 percent
said their businesses would
likely have moderate disruption,
and 23 percent indicated a
substantial disruption.
With an estimated average
cost per minute of $53,210 for
a minor disruption, $38,065
for a moderate disruption
and $32,229 for a substantial
disruption, the total cost adds
up quickly when multiplied by
the estimated number of minutes
provided by the respondents.
The estimated average total
cost of disruption to business
and IT operations over the next
24 months is: $1 million for
minor disruptions, $4.3 million

Maintaining Continuity and Resiliency
IBM is committed to helping clients improve the resiliency of their IT environments. Specifically, the IBM Business Continuity and Resiliency Services team
has been actively helping clients for 25 years.
"We are a corporation that helps companies improve the resiliency of their
businesses by utilizing our hardware, software and services to help ensure
critical information is continuously available to meet business needs," says
Patrick Corcoran, global business development executive at
IBM. "Resiliency is about adaptability, scalability and flexibility; being proactive to mitigate risks and take advantage of opportunities, but also having the capability
to respond quickly in the event of a disruption. We
focus on resiliency, business continuity, disaster
recovery, crisis management, high availability
and much more." -C.V.

for moderate disruptions and
$14.3 million for substantial
disruptions. The money spent
after a disruption is mainly
allocated to the cost of users'
idle time, forensics and
technical support.
The study shows the estimated
reputation-related cost resulting
from disruption to business or
IT operations over the next 24
months is: $20,929 for minor
disruptions, $468,309 for
moderate disruptions and $5
million for substantial disruptions.
One of the key findings,
according to Ponemon, is that
the results "strongly suggest
that learned executives and IT
practitioners recognize their
organization's reputation or
brand is on the line every time
it experiences a significant
disruption to business and
IT operations."
In another IBM IT Risk and
Reputation study completed in
2013, nearly 30 percent of the
respondents said it would take
six or more months to recover
a company's reputation after a
data breach. Corcoran says in
that time, a company is spending
money on additional marketing
efforts or promotions to salvage
the company's reputation.

Reputation Is Everything
Until recently, quantifying the
cost that IT failures have on
a company's reputation was
difficult. Respondents were asked
to rank the common threats
they believed would have the
most impact on a company's
reputation. Topping the list is a
data breach or data theft. Second
is natural or manmade disasters,
and third is IT system failure.

Take the IT Reputational Risk Index assessment
www.ibmriskindex.com

42
// JULY/AUGUST 2014 ibmsystemsmag.com


http://www.ibmriskindex.com

IBM Systems Magazine, Mainframe - July/August 2014

Table of Contents for the Digital Edition of IBM Systems Magazine, Mainframe - July/August 2014

Table of Contents
Editor's Desk: Protecting information
IBM Perspective: Sunny outlook on the mainframe
Techbits: Watson: your personal shopper
Infographic: How the mainframe changed our world
Partner PoV: ISVs can help mainframe customers keep up with a rapidly evolving environment
Focus on Storage: IBM FlashSystem addresses storage and application performance issues
Currents: As data consumption expands, information protection policies must be put in place
Case Study: Credit Where Credit's Due: Isracard Group devises a novel way to verify its system integrity before disaster occurs
Cover Story: A Secure Fortress: The mainframe delivers the reliability, safety and cost-effectiveness your IT shop needs
Feature: Be Proactive in Risk Management: Protecting data is crucial as your business connects in ever-increasing ways along the access superhighway
Feature: Being Risk-Aware: New IBM and Ponemon study examines the economics of IT risk and reputation
Administrator: Active/Active Sites helps distribute workloads during outages
Tech Corner: A point-in-time tool, Runtime Diagnostics can find issues in a pinch
Solutions: Reflection 2014; CA Chorus; VFTP 3.0; Lifecycle Manager; STEPLIB-Rx; Ivory VisualConnect; Mainframe Abend Assist; Linux Enterprise Server Starter System for System z
Stop Run: Together, IBM executives Pat Toole Jr. and Pat Toole St. bring more than half a century of dedication to the company
Reference Point - Global Events, Education, Resources for Mainframe
2014 Mainframe Solutions Edition Product Index
IBM Systems Magazine, Mainframe - July/August 2014 - Intro
IBM Systems Magazine, Mainframe - July/August 2014 - Cover1
IBM Systems Magazine, Mainframe - July/August 2014 - Cover2
IBM Systems Magazine, Mainframe - July/August 2014 - 1
IBM Systems Magazine, Mainframe - July/August 2014 - Table of Contents
IBM Systems Magazine, Mainframe - July/August 2014 - 3
IBM Systems Magazine, Mainframe - July/August 2014 - 4
IBM Systems Magazine, Mainframe - July/August 2014 - 5
IBM Systems Magazine, Mainframe - July/August 2014 - Editor's Desk: Protecting information
IBM Systems Magazine, Mainframe - July/August 2014 - 7
IBM Systems Magazine, Mainframe - July/August 2014 - IBM Perspective: Sunny outlook on the mainframe
IBM Systems Magazine, Mainframe - July/August 2014 - 9
IBM Systems Magazine, Mainframe - July/August 2014 - Techbits: Watson: your personal shopper
IBM Systems Magazine, Mainframe - July/August 2014 - 11
IBM Systems Magazine, Mainframe - July/August 2014 - Infographic: How the mainframe changed our world
IBM Systems Magazine, Mainframe - July/August 2014 - 13
IBM Systems Magazine, Mainframe - July/August 2014 - Partner PoV: ISVs can help mainframe customers keep up with a rapidly evolving environment
IBM Systems Magazine, Mainframe - July/August 2014 - 15
IBM Systems Magazine, Mainframe - July/August 2014 - Focus on Storage: IBM FlashSystem addresses storage and application performance issues
IBM Systems Magazine, Mainframe - July/August 2014 - 17
IBM Systems Magazine, Mainframe - July/August 2014 - 18
IBM Systems Magazine, Mainframe - July/August 2014 - 19
IBM Systems Magazine, Mainframe - July/August 2014 - Currents: As data consumption expands, information protection policies must be put in place
IBM Systems Magazine, Mainframe - July/August 2014 - 21
IBM Systems Magazine, Mainframe - July/August 2014 - 22
IBM Systems Magazine, Mainframe - July/August 2014 - 23
IBM Systems Magazine, Mainframe - July/August 2014 - Case Study: Credit Where Credit's Due: Isracard Group devises a novel way to verify its system integrity before disaster occurs
IBM Systems Magazine, Mainframe - July/August 2014 - 25
IBM Systems Magazine, Mainframe - July/August 2014 - 26
IBM Systems Magazine, Mainframe - July/August 2014 - 27
IBM Systems Magazine, Mainframe - July/August 2014 - 28
IBM Systems Magazine, Mainframe - July/August 2014 - 29
IBM Systems Magazine, Mainframe - July/August 2014 - Cover Story: A Secure Fortress: The mainframe delivers the reliability, safety and cost-effectiveness your IT shop needs
IBM Systems Magazine, Mainframe - July/August 2014 - 31
IBM Systems Magazine, Mainframe - July/August 2014 - 32
IBM Systems Magazine, Mainframe - July/August 2014 - 33
IBM Systems Magazine, Mainframe - July/August 2014 - Feature: Be Proactive in Risk Management: Protecting data is crucial as your business connects in ever-increasing ways along the access superhighway
IBM Systems Magazine, Mainframe - July/August 2014 - 35
IBM Systems Magazine, Mainframe - July/August 2014 - 36
IBM Systems Magazine, Mainframe - July/August 2014 - 37
IBM Systems Magazine, Mainframe - July/August 2014 - Feature: Being Risk-Aware: New IBM and Ponemon study examines the economics of IT risk and reputation
IBM Systems Magazine, Mainframe - July/August 2014 - 39
IBM Systems Magazine, Mainframe - July/August 2014 - 40
IBM Systems Magazine, Mainframe - July/August 2014 - 41
IBM Systems Magazine, Mainframe - July/August 2014 - 42
IBM Systems Magazine, Mainframe - July/August 2014 - 43
IBM Systems Magazine, Mainframe - July/August 2014 - Administrator: Active/Active Sites helps distribute workloads during outages
IBM Systems Magazine, Mainframe - July/August 2014 - 45
IBM Systems Magazine, Mainframe - July/August 2014 - 46
IBM Systems Magazine, Mainframe - July/August 2014 - 47
IBM Systems Magazine, Mainframe - July/August 2014 - Tech Corner: A point-in-time tool, Runtime Diagnostics can find issues in a pinch
IBM Systems Magazine, Mainframe - July/August 2014 - 49
IBM Systems Magazine, Mainframe - July/August 2014 - 50
IBM Systems Magazine, Mainframe - July/August 2014 - 51
IBM Systems Magazine, Mainframe - July/August 2014 - Solutions: Reflection 2014; CA Chorus; VFTP 3.0; Lifecycle Manager; STEPLIB-Rx; Ivory VisualConnect; Mainframe Abend Assist; Linux Enterprise Server Starter System for System z
IBM Systems Magazine, Mainframe - July/August 2014 - 53
IBM Systems Magazine, Mainframe - July/August 2014 - 54
IBM Systems Magazine, Mainframe - July/August 2014 - 55
IBM Systems Magazine, Mainframe - July/August 2014 - Stop Run: Together, IBM executives Pat Toole Jr. and Pat Toole St. bring more than half a century of dedication to the company
IBM Systems Magazine, Mainframe - July/August 2014 - Cover3
IBM Systems Magazine, Mainframe - July/August 2014 - Cover4
IBM Systems Magazine, Mainframe - July/August 2014 - Reference Point - Global Events, Education, Resources for Mainframe
IBM Systems Magazine, Mainframe - July/August 2014 - 2014 Mainframe Solutions Edition Product Index
IBM Systems Magazine, Mainframe - July/August 2014 - SE2
IBM Systems Magazine, Mainframe - July/August 2014 - SE3
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