Firms skimp on privacy protection spending

Investment in privacy protection is significantly lower than in other corporate compliance initiatives such as environmental or ethics programmes.

Despite the growing importance of privacy protection for businesses, 95 per cent feel that their firms spend less on privacy than on environmental initiatives, according to a survey of 44 US-based multinational organisations.

The poll, commissioned by IBM and conducted by the Ponemon Institute, also revealed that privacy spending increased noticeably the further along organisations were in their implementation process of privacy initiatives.

The study's results revealed that companies in the early stage spend an average of about $3.9m, companies in the middle stage spend an average of $6m and companies that have reached the late stage spend an average $14m.

"The spending increases are a result of such late-stage activities as running employee training sessions, performing self-assessments, conducting independent audits, securing vendor relationships and obtaining website certification," the study warned.

Spending on privacy initiatives among the firms surveyed was found to vary from approximately $500,000 to about $22m annually.

Dr Larry Ponemon, chairman and founder of the Ponemon Institute, said in a statement: "Spending is the most objective indicator of how important an initiative is to an organisation."

See also:

Identity crisis hits UK companies

Security breaches due to identity theft causing widespread damage  22 Mar 2004

IT spending freeze to thaw in 2004

Majority of senior executives plan to increase IT spending this year  19 Jan 2004

'Necessary evil' could boost your efficiency

Corporate governance is set to become a market worth millions of dollars  27 Nov 2003

Confidence rises to drive IT spend

Global spending will grow slowly in 2004, says Meta  26 Nov 2003

Monitors must guard privacy

Calls for the EU to do more to protect worker privacy may force companies to review their policies for online monitoring  14 Sep 2003

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