A top concern for companies of all sizes recently has been data breaches as cyber criminals gain power from high ransom payments. Data breaches occur when a third party gains unauthorized access to sensitive information and either sells it on the dark web or holds it for ransom. It’s important for companies to be familiar with some of the implications of a data breach even if they have a solid cybersecurity plan in place. While some impacts of data breaches don’t last for too long, others can lead to long-term consequences. Understanding the difference between each impact is valuable so that in the event of a breach, your organization can respond quickly and efficiently to mitigate any lasting impacts and come back stronger.
We’ve outlined some of the areas that data breaches impact in your organization and what it means for the future of the company. It’s important to remember that data breaches differ between organizations and the impact they have on a company also depends on your team being proactive.
The financial impact of a data breach can vary depending on the severity and reach within the network. There is still a large price associated with a breach in the event that your data is held for ransom. Companies can spend thousands if not millions on ransom to recover sensitive data and establish a cybersecurity plan. In addition, in the event that the news of the data breach is made public, your organization’s stock price may fall because of negative press and a seemingly weak cyber plan. The recovery time for stock prices usually depends on how well your organization handles the data and proves that you’re stronger and more secure than before.
The reputation of a company can be greatly damaged in the event of a data breach and the unwanted press and social media attention along with that. Headlines solely about your company’s data breach can overshadow the amazing services and products you’re launching. It can also deter new and current customers from doing business with you as they may feel that their information won’t be safe within your company. Finally, legal action taken against your company by partners, employees, or customers adds another level of negative publicity surrounding your organization.
Extended downtime due to a data breach severely impacts your company’s profits and productivity. Without access to vital data, employees are unable to complete their jobs and operate at a full capacity. Each data breach is different in the type and quantity of data that is stolen from a company but without full access to data projects and productions will inevitably be held up. The amount of time that an organization is unable to fully operate truly depends on how quickly systems can be restored and access can be recovered to accounts and employees.
Each time a hacker is able to access sensitive company information through unauthorized methods, they are empowered to continue their activity and withhold or sell data for sky-high prices. While organizations may have no other choice than to pay ransom, this decision continues to fund cyber criminals who will then target other companies. It also serves as a signal to the worldwide community of hackers that your network and cloud are weak and follow up attacks may persist. Establishing a cybersecurity plan after your data breach and being more vocal about the steps your company is taking to protect their networks can take some of the power away from hackers in the future.
A data breach may not completely take down your company, but it’s important to take action and immediately protect your company from future attacks. By being proactive post-data breach, your company can recover quicker and re-establish itself among the competition. During the recovery process of a data breach, it’s also important to consider implementing a SOC-as-a-Service into your cybersecurity framework. AgileBlue offers organizations 24/7 monitoring and threat detection so you can rest easy knowing that your cloud and network are protected in the event of a potential threat. Request a demo with us.