November 18, 2015
Colby DeRodeff

5 Little Known Effects of a Data Breach

<p>Data breaches have major consequences. From a simple loss of market share to complete corporate collapse, the loss of data causes tremendous risk and profoundly impacts an organization in numerous ways – some of which are more well known than others. Here, we’ll detail 5 effects of a data breach that, although are a bit more under the radar than others, are still pressing. Let&amp;rsrsquos dig in.</p><p> </p><p><strong>1.  Strategic Impact</strong></p><p>Strategic risk is future-oriented and, thus, <strong><a href="">difficult to foresee</a></strong> and mitigate. A data breach can majorly sway a company’s strategic efforts, setting it back a few steps. Basically, a breach incites a whole change of plans – and commands a more secure plan of action going forward.</p><p><strong>2.  Damaged Reputation</strong></p><p>Though often overlooked, risk to a company’s reputation can cause more long-term damage than any other risk type. Damaged reputations typically shrink shareholder value and may involve negative publicity, loss of clients or key employees, and decreased revenue. Reputation risk is so critical, in fact, that a number of online tools have emerged that use social media to track how corporate reputations are impacted during a crisis.</p><p><strong>3.  Stolen Intellectual Property</strong></p><p>While stealing your identity and money can be detrimental, stealing your intellectual property can be just as damaging to a business. If a hacker gets in and steals ideas, plans, or blueprints, you could miss out on being able to fully implement new products or designs – which could keep your business from expanding.</p><p><strong>4.  Fines</strong></p><p>The actual financial damage caused by a data breach goes beyond a loss of revenue or providing compensation to affected customers. Organizations have to take into account fines that can be issued by the regulator, which can take an extreme toll on the business’ financial standing.</p><p><strong>5.  Operational Impact</strong></p><p>Breaches can delay business operations – even the most innovative and potentially beneficial projects. Within an organization, a data breach can result in data paralysis, where employees and customers alike are too scared to embrace data-led initiatives. It can take months if not years for a business to get past data security concerns, making space for competitors to move in.</p><p><strong><a href="">Keeping an eye on business goals</a></strong> while creating security systems to enable that vision can lead companies to adopt more flexible and secure working environments that provide greater protection from harmful risk throughout all of their organizational divisions. Consider all of your risks and do everything in your power to mitigate them!</p><p>Want to learn more on how to take the intelligent approach to monitoring threats? Check out our free <strong><a href="">white paper</a></strong>! </p>

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