Introduction
Due to the exposure of sensitive information, data breaches affect both individuals and organizations. In both cases, they may experience overwhelming losses and legal liabilities. To avoid this headache, due diligence efforts are required to protect the data on a priority basis. Otherwise, it will be an expensive lesson in data security.
Consequences of Data Breaches
The threat to data security happens when it becomes highly valuable to a third party. In the following way, data breaches can affect individuals and organizations -
Financial Impact –
The most obvious impact of data breaches is financial. According to Ponemon, a single data breach can cost millions of dollars, and it generally extends for the next few years.
Loss of Goodwill –
A data breach may impact the relationship between the two parties. It also affects organizations through loss of sales, customers, and investors.
Loss of Productivity –
The cyber-attacks that encrypt files can result in a standstill of business activities.
Legal Liability –
If any individual or organization is responsible for data breaches, then they have to face fines or other legal penalties.
Conclusion
Data breaches can have long-lasting effects on both individuals and organizations. Thereby, it is recommended to adopt adequate security and other protective measures to reduce data breach risks and eliminate the possibility of high data breach costs.
Cyberroot Risk Advisory (CR Group)