It is no longer a novelty that companies need to protect their information more and more. We live in a highly digital world and therefore the threats have proliferated at a very fast speed. Nowadays companies need to effectively use data security solutions, otherwise they will see their confidential information exposed. A security breach can be dramatic for a business, and can even dictate the end of it. In today’s article, we’ll realize how much does a security breach actually cost.
They are the costs related to the notification to customers and other stakeholders, not forgetting the authorities that by law should be advised in case of security breaches. These costs include monetary and human resource costs, which need to set a strategy and spend time sending notifications.
Businesses suffering from a security breach face serious productivity problems, especially if they are not equipped with a disaster recovery strategy. When companies have their data exposed and threatened, they need to focus on activities that are outside the normal work routine, which will obviously have detrimental consequences on productive outcomes. For example, at the retail level, a manager will have to focus on retrieving data from his client portfolio instead of looking for new business.
Rebuild the image of the company
After a company has experienced a security breach, it is necessary to rebuild the entire brand image and ensure that the target audiences with whom it works continue to rely on its work. This is one of the higher costs, because it is necessary to invest in a good communication plan that can recover the value of the brand and bring back the trust of the customers.
When there is a security breach, IT managers need to plan an investment in recovering the IT infrastructure and hardware and software affected by the security breach. At this stage, it is necessary to consider the possible costs of an audit required by business partners and investors to ensure that there are no risks associated with working with the company.
Repetition of work
When there are security holes, IT teams are very likely to be forced to do the same tasks over and over to recover data that has been lost. It is essential that the company has well-defined processes for managing and processing confidential data to minimize damage caused by security problems. The constant repetition of tasks can lead to the demotivation of employees and the consequent increase of the turnover rate in the company, which will translate into recruitment costs.