Temp Trace Technologies
Penetration Assessment vs. No Testing — Liability Comparison
Category
Legal Liability
Data Breach Risk
With Physical Penetration Test
Without Physical Penetration Test (Avg Liability / Loss Exposure)
​Demonstrates due diligence and proactive risk management.
Failure to identify known risks can be deemed negligence.
Typical exposure: $250K – $2M+ in legal fees and settlements
Vulnerabilities identified and remediated before exploitation.
Unauthorized access → data exfiltration and compliance violations.
Average breach cost: $1M – $5M+
Lawsuit/Class Actions
Lower likelihood; strong legal defense posture.
High likelihood post-breach.
Typical class action payouts: $1M – $10M+
Regulatory Fines
Helps align with compliance standards.
Non-compliance penalties enforced after breach.
Typical fines: $100K – $5M+ depending on industry
Vendor Risk Exposure
Vendor access points tested and secured.
Vendors exploited as entry points (badges, unattended access).
Typical loss exposure: $500K – $3M+
Insurance Impact
Stronger claim support and coverage likelihood.
Claims may be reduced or denied due to lack of controls.
Out-of-pocket losses: $500K – $2M+
Insurance Impact
Stronger claim support and coverage likelihood.
Claims may be reduced or denied due to lack of controls.
Out-of-pocket losses: $500K – $2M+
Reputation Damage
Minimal; proactive security posture.
Customer churn, lost contracts, and brand damage.
Estimated financial impact: $500K – $5M+
Operational Disruption
Controlled testing with minimal disruption.
Ransomware or physical sabotage can halt operations.
Downtime cost: $100K – $1M+ per day
Intellectual Property Theft
Stronger claim support and coverage likelihood.
Claims may be reduced or denied due to lack of controls.
Out-of-pocket losses: $500K – $2M+
Employee Security Risk
Employees tested and trained against real scenarios.
Social engineering and tailgating remain unchecked.
Typical incident cost: $250K – $1M+
Cost (Investment vs Loss)
$5K – $50K+ investment
Average total breach impact: $4M+ (can exceed $10M+)
Litigation Defense
Provides documented proof of due diligence.
Lack of testing used as evidence of negligence.
Legal + settlement costs: $500K – $3M+