What Are The Hidden Costs of Data Breaches and How Can You Avoid Them?
It has been estimated that, on an average, a data security breach has the potential of taking place in under a minute, while recovering from its damages can take an unprecedented time. Given this fact, it becomes mandatory to make the security of the sensitive information in any business of premier importance. Not only does this breach of data cause the dissemination of sensitive information to unknown sources, but it also causes an aggravating blow on the budget of the enterprise, likely causing losses.
Cybersecurity threats have been on the rise for the past few years, making the security measures taken against this menace a prerequisite above all. Any compromise of data could be fatal for the safety of any business.
Listed below are some of the major hidden costs of a data security breach, followed by a few guidelines on how they can be avoided so that your business can be protected as best as possible.
Loss In Business
The most evident hidden loss in the event of a security breach would be that of loss in business, and thereby, a loss in revenue. Upon a data breach, some or all of the systems need to be shut down completely so as to enable the necessary repairs. This contributes to a great loss in business. In a majority of cases, this breach is not erroneous, but rather an outcome of nefarious activity with deliberate motive. This task could have been done by hackers or cybersecurity criminals, therefore, the services you hire must also inquire into the source of the breach, which could take even longer to investigate than to just simply repair the damage, in addition to making sure that the already compromised system is not attacked again.
Loss of Time
As mentioned before, the time required to engender a data security breach is disproportionately less than the time required to recognize the threat and put into effect the necessary repairs. In addition to that, there is the latent cost of relocating employee resources and time to make for the breach. The focus and plans for the current projects are compromised, and often have to discarded completely to deal with this crisis. If this happens to a relatively larger company, there might also be a need for allocating funds and time for an entire advertisement campaign dedicated to the breach and dissemination its ramifications on a public scale as a form of disaster management and mitigation.
Loss Of Reputation
A data breach can also negatively affect the brand name that is oftentimes too vitriolic to recover from. The clientele and potential business associates are constantly reminded of the tarnished name of an affected business whenever the brand’s name is evoked. The clients also become wary of the company and hesitate to trust them with confidential or sensitive information. In these circumstances, it is always advisable to make sure to communicate this data breach to the clientele and potential and existing partners as soon as possible.
The Loss in Intellectual Property
Although the loss of revenue and reputation is quite disastrous for a business affected by a data breach, it can be recovered in some measure sooner or later. However, the loss that is truly immeasurable is the loss of designs, blueprints, and strategies of your existing projects. This is especially likely if yours happens to be a smaller business, as they are easier targets for hackers and cybercriminals.
If you happen to be in a dilemma about hiring a reputable data recovery service, you can solicit the services of Platinum Data Recovery, a professional organization that specialises in the retrieval of sensitive information from a variety of media.