Companies Scrimped on Data Security: Report

SN STAFF

NEW YORK — Because of the economy, many retail and consumer goods companies have held back on increasing information security investments, despite recognizing the growing and continued importance of information security to their organizations and customers, according to a new report from PwC here.

The leading driver of decreasing information security spending in 2010 is the economic downturn, as reported by 53% of retail and consumer companies, said the report, called “R&C Insights: Respected — but still restrained.” However, the survey also reveals that 51% of respondents expect security spending to increase over the next 12 months.

The report examines information security for retail and consumer, based on survey responses from 1,062 senior industry executives.

Other findings include:

• Fifty-three percent of retail and consumer executives surveyed said the increased risk environment has elevated the role and importance of the information security function.

• Sixty-seven percent of respondents said they are attempting to reduce economy-related risks by focusing on data protection.

• Forty-six percent said they purchased an insurance policy that protects against theft or misuse of assets, including electronic data or customer records.

• Thirty-nine percent list business continuity and disaster recovery as a driver of security spending.