Cyberattacks are becoming increasingly common day-by-day as hackers find new ways to circumvent companies’ security protocols and gain access to their data. Companies need to be more aware today and employ stringent security policies to protect their data.
A data breach can have a long-lasting, devastating impact on a business.
Along with the loss of data, the company that falls victim to a data breach may also experience a decline in their market valuation and a tarnished reputation. Depending upon the type and severity of a data breach, these cyberattacks have negative impacts that can often hamper the company’s growth.
Data breaches often have severe financial repercussions. In addition to this, they can also have a variety of other negative consequences for organizations. One of the most severe impacts of a data breach includes a tarnished reputation.
How does a data breach impact a brand’s reputation?
A solid brand reputation is one of the biggest assets of any organization. Companies devote a lot of resources, effort, and time to build and maintain the integrity of their business. However, years of brand building, market reputation, and hard work can be lost due to a single data breach.
In most cases, companies have to deal with rebuilding their tarnished image and restoring their brand value. Recovering from a cyberattack may take months, if not years.
Once a data breach is detected, companies often stop operations until the breach is completely contained, and security is restored. This results in diminished business operations and revenue loss as a result of unexpected operational downtime. If the damage done by a data breach is far-reaching and wide, it can take an even longer amount of time to recover from the threat.
To give you a better idea of how data breaches impact businesses in the long-term, here are some of the most severe consequences a data breach may have on a company: