Impacts of a Security Breach on an Organization and Its Reputation

If you or your employees have the ability to take your work with you, how confident are you in your practice of security? Are you aware of the impact a breach to your organization will have? The security measures are no longer basic precautions. Due to the sophistication and abundance of ways to attack a company, security must always encompass the overall well-being of the enterprise, and it’s consumer.

Anywhere you go–whether at home or the local coffee shop–the threat to your secured data increases. Therefore, your staff’s awareness of the most recent methods and avenues that hacktivists use is imperative. Education must continually be updated for employee awareness of where they are going, and how they are using company work and information in case of attack for obtaining data.

According to a 2012 study done by Ponemon Institute called Aftermath of a Data Breach Study, the following impacts occurred:

  • Loss of Productivity – 50%
  • Loss of Customer Loyalty – 41%
  • Legal Action – 34%
  • Unfavorable Media Coverage – 30%
  • Customer Turnover – 28%
  • Decline in Company’s Share Price – 25%

The impact of a breach on an organization is potentially staggering, and often unknown until the results come to fruition. It’s unfortunate that the highest occurrences of compromise come from inside the company due to malicious or negligent acts; it takes a time for an organization to recover.

The cost of lost business alone holds great consequence for any organization. There’s a growing awareness of the ease of theft of identity and personal information. When a breach occurs, not only does the business’ reputation become damaged, the consumer’s trust is also compromised.

There is nothing concrete to prevent a violation entirely, but the likelihood is reduced when the entire company is educated and aware of precautions to take. Contact Interactive Services today for a consultation on matters of education, and raising awareness of how a breach of data may occur.