The sad fact is that the largest companies where some of the most egregious breaches have occurred are far better equipped technologically, financially and reputationally to survive a data breach than smaller companies. Not only can they endure larger losses of customers due to their scale and have the ability to invest in best in class fraud detection and prevention tools, but their size also benefits them in other ways.
In 2016, the average cost of a data breach for a company of $50 million in revenue was $195,000. For a company of $10 billion in revenue, the average cost of a breach was $1.6 million.
Meaning, a company of $50 million in revenue incurs losses equivalent to 0.39% of annual revenue, whereas a company of $10 billion in revenue incurs losses equivalent to just 0.02% of annual revenue. This gives further credence to the phrase “too big to fail.”