Security threats are becoming increasingly prevalent and sophisticated, so businesses are even more critical than ever to prioritize corporate security. Failing to invest in adequate security measures can result in devastating consequences for a company, including financial losses, reputational damage, and legal liabilities. Businesses must pay attention to corporate security, and there are steps to protecting your organization.
Financial LossesA security breach’s financial impact on a business is a significant consequence. A cyberattack can lead to direct losses, such as theft of funds or intellectual property, and indirect losses, such as lost productivity and downtime. According to a study by IBM, the average data breach cost in 2020 was $3.86 million. This significant sum can severely impact a business’s bottom line, especially for smaller companies needing more resources to absorb such losses. Reputational DamageIn addition to financial losses, a security breach can damage a company’s reputation. Consumers are increasingly aware of the risks of sharing their personal information online. They are more likely to take their business elsewhere if they feel their data needs to be protected. According to a survey by the Ponemon Institute, 65% of consumers say they would lose trust in a company that experienced a data breach. This loss of confidence can have long-term consequences for a business, as it can take years to regain consumers’ trust and rebuild a damaged reputation. Legal LiabilitiesBusinesses that fail to invest in adequate security measures may also expose themselves to legal liabilities. Depending on the nature of the breach, a company may be subject to lawsuits, fines, and regulatory penalties. For example, suppose a company collects and stores personal information such as credit cards and social security numbers. In that case, it may be subject to regulations such as the General Data Protection Regulation (GDPR) or the California Consumer Privacy Act (CCPA). By not complying to these regulations, there can be significant fines and legal fees. Steps to Protect Your BusinessGiven the potential consequences of a security breach, businesses need to invest in corporate security. Below are steps to take to protect your organization:
This article was originally posted on Ron Navarreta's website.
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AuthorRon Navarreta is an experienced security operations manager based out of Orange County, California. Archives
October 2023
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