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Does a data breach really affect your firm’s reputation?

Posted on January 7, 2016 by Dissent

Doug Drinkwater reports what regular readers have likely already noticed: following a data breach, customers are upset, some will be reluctant to do business again with the entity, there may be brand or reputation damage to the firm, but big businesses survive and will continue to grow or rebound.  So there may or may not be reputation damage, but even if there is, it hasn’t turned out to be as impactful as previous surveys and clarion calls might suggest.

Although incident response impacts reputation damage,  reputation damage may not be as damaging to the bottom line as companies had been told to fear.

Read more on CSO. They’re only talking about big corporations (not surprisingly). What about small businesses? Do they rebound or do they fold? Over the years, I’ve reported on some cases where a business did not recover from a breach and folded. And recently, I reported on two data exposures where neither company has as yet recovered and it appears at least one of them has just disappeared.

 

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