As data breaches become more common, it’s not a matter of “how” an organization is going to be attacked, but “when.” There is a continual stream of data breaches which is only increasing in severity and frequency.
As technology advances, businesses rely on the latest innovations to secure their data. However, today cybercriminals also rely on more sophisticated techniques to target businesses and gain access to their valuable data.
By leveraging technology, attackers are often able to circumvent security protocols and access sensitive information causing a data breach. The consequences of a data breach have become more prominent and many companies are now well aware of the potential damage a data breach could cause.
Be it a financial loss, or a dent in the company’s market reputation, a data breach can have long-term effects and cause irreparable damage.
What happens when a data breach occurs?
If your company doesn’t follow compliance regulations such as the GDPR and CCPA, then large fines can be imposed as a result of non-compliance. Businesses may face further operational downtime and a decline in sales which could lead to revenue loss.
A data breach may also have a significant impact on your brand’s reputation and damage customer relationships. If your customers’ data is compromised during a data breach, they might simply lose confidence in your organization.
A new report by the professional body (ISC)2 revealed that a data breach may impact the company’s valuation. About 250 US-based acquisition experts and mergers were surveyed, and 49% of those participants had seen an acquisition or a merger agreement fall due to a data breach.
A robust cybersecurity program is necessary to mitigate risks and potential vulnerabilities that may leave the company’s data vulnerable to data breaches. If organizations take preventive measures and strengthen the overall security of their data, they become less likely to face the severe consequences of a potential data breach.
Systems like identity and access management can significantly improve the security of your organization. If you haven’t yet invested in the latest tools, the risk of a data breach is high.
Ask yourself these questions:
- Have you implemented the least privilege access model?
- Do you have strong password policies in place?
- Do you use encryption for sensitive data such as personal information like credit card details, passwords, contact numbers, etc.?
- Are you continuously monitoring and managing sensitive data?
- Do you have the necessary tools, processes, and policies in place to secure your data?
- Do you host regular training programs to educate your employees about the latest security challenges?
Moreover, business owners should understand the consequences of a data breach to properly determine the risks.
Here are some of the long-term effects that a data breach can have on your organization.
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