A Detailed Report on the Effects of Data Breach on an Organization

This report examines the significant effects of data breaches on an organization's reputation, focusing on the theft of vital information, loss of revenue, loss of intellectual property, and exposure of private and confidential data. It emphasizes the importance of implementing robust security measures ...Read More

Running Head: DATA BREACH
EFFECTS OF DATA BREACH ON ORGANIZATION’S REPUTATION
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EFFECTS OF CYBERSECURITY
Table of Contents
Introduction.................................................................................................................................................3
Effects of Data Breach on a Company.........................................................................................................3
Theft of vital information........................................................................................................................3
Loss of revenue.......................................................................................................................................4
Loss of intellectual property....................................................................................................................5
Loss of private and confidential information...........................................................................................5
Conclusion...................................................................................................................................................6
References...................................................................................................................................................8

EFFECTS OF CYBERSECURITY
Introduction
For a long-term and successful operation of a company or any organization, it requires that the
organizations put in place security measures to avoid any breach of data that can lead to the bad
reputation of a company, a data breach can harm both public and private entities (Hamel &
Prahalad, 2005). Whenever a data breach occurs however slight it may be it should be taken
seriously and addressed in a proper way, because if it is not properly handled the organization
will suffer consequences that can lead to closure.
Cybercrime has become latest threat to most businesses today and they have similarly dire
consequences to the organizations that fall a victim. In one way or another, it is required that
organizations to put in place mechanisms to reduce the chances that can lead to a data breach,
however, some data breaches are temporary. This should be done on a regular basis because
these individuals or groups that do carry out attacks on organizations are always ahead on their
crafty ways to hack into various systems (Kanter, 2014). However, whenever a company suffers
from a data breach it does not mean that they are cast and they should keep aside, there are
mitigations and management procedures to help the companies to be back to their business.
These breaches are the challenges affecting organizations hurting company’s business and
painting bad reputations.
Effects of Data Breach on a Company
Theft of vital information
These data breach affects the daily today operations of companies and they manifest in different
forms such as; theft of information where hackers gain access to the network or websites of
organizations and access private and confidential information of the organization and individuals
such as employees, customers etc. This information can be leaked to the public or competitors, or

EFFECTS OF CYBERSECURITY
they can use to carry out illegal transactions, competitors to compete that company unfairly can
use information such as trade secrets. In one way or another, the clients and employees are left
exposed but this can be managed through having crisis communication plans this helps in
communicating with customers (Cayla & Arnold, 2008). Without such strategies, in place, it will
not be easier for the customers to believe the messages sent to them claiming to be from a given
organization and this may make the public know that the company is reacting to the crisis instead
of being proactive.
Loss of revenue
Another consequence is a loss of revenue when attackers gain access into a system they cause
unnecessary traffic on the systems thus you cannot use it for the normal operations thus the
company becomes unreliable to users and consumers because the business is not done (Cadogan,
2009). Whenever illegal transactions are done with stolen data from a company this also leads to
loss of revenue or an instance when customers keep away a company. The companies can put in
place cybersecurity and disaster recovery plans, to help them gain access of the systems and
remove the traffic caused by the hackers to restore the normal operations of the company. When
this is done immediately, customers and the public will not realize that, there was an attack on
the systems and they just trade normally with the company (Collis & Rukstard, 2008).

EFFECTS OF CYBERSECURITY
Loss of intellectual property
Lose of intellectual property, hackers gain access and steals organizational or personal
information such as blueprints, ideas this leaving those companies or individuals unable to
implement their products or policies that could help them expand or remain afloat. On the same,
others can implant this intellectual property stolen and it works successfully but they did not get
them in right way (Andrews & Russell, 2012). The victim organizations must come to terms and
understand the risks they have faced and conduct an audit to dig out what lead to the breach; if it
is human or technology related then find the best solution to minimize such risks again, this can
help build the reputation of the organization that would have been lost completely. Companies
should also put business continuity plans to take care of such breach it occurs by building
another business idea, plan or blueprint to be implanted.
Loss of private and confidential information
Some attackers hack systems like websites and plant false some attackers to get money from the
victims use information about individuals or organizations thus wrong information is passed to
the consumers, this tactic. Sometimes they get private information and then they threaten to
expose if you do not pay them money requested. These data breaches can ruin the reputation of a
company despite some being temporary (Bharathi, 2016). Some companies that are listed on
stock exchange always get affected so much and their value drops drastically when a data breach
occurs and it goes public, this is because loyalty and preference of consumers are lost, as many
prospective investors do not want to buy the shares because they fear to lose their investments.
These organizations affected can recover from such tragedy by having strong public relations
protect the brand of the company and provide marketing campaign. This can be done through the

EFFECTS OF CYBERSECURITY
media and others such as social media which for a large component of public relation platform
because it reaches many people and very fast to help build the trust of consumers telling them
that the breach was managed.
Whenever any form of breach occurs companies there should be in place customer
communication strategy to pass to them on regular basis only relevant communication and in a
consistent manner, this should begin early enough even before such crisis so that customers can
fully get engaged with companies messaging (Barney & Clifford, 2010). Such customers, there is
likely they will become receptive because they will trust the information sent to them by the
company and even they will support the company during a crisis such as data breach.
Conclusion
Data security breach that leads to loss of individual or company data can be problematic, as some
customers will shun those companies and this shakes companies within a short time making them
lose revenue and value. Some companies always manage to recover from such crisis while others
do not and sink down. I would recommend that companies put in place proper data breach crisis
management and handling mechanism to the dangers that are associated with that comes when
the crisis is not well managed, we as the general public customers of this organizations we
should support these companies to come out such crisis. All organizations irrespective of their
size should invest the infrastructures that can help in managing, minimize data breach, and be
proactive in protecting themselves from cyber threats. The government has to put in place laws
to help in enforcing cybersecurity policies for organizations using information systems. These
organizations must also employ personnel and train them regularly to help in setting up systems
and managing them to minimize such attacks at the same time government and professional

EFFECTS OF CYBERSECURITY
bodies in the same line can always have incentives for the organizations putting in place security
mechanisms.

EFFECTS OF CYBERSECURITY
References
Andrews, G. and Russell, M. (2012). Data breach: evaluation
and impact. Higher Education, Skills and Work-Based Learning, 2(1), pp.33-44.
Bharathi, A. (2016). Taking care of company information: Issues & Concerns.
Higher Learning Research Communications, 6(4).
Barney & Gorman Clifford. (2010). How cyber security works in the Real World.
Penrith, Australia: Western Sydney University.
Collis & Rukstard. (2008). Can you Say what data breach is? Oxford, England:
Oxford University Press.
Cadogan, J. (2009). The management information systems. Los Angeles [u.a.]: Sage
Philadelphia, PA: Saunders.
Cayla & Arnold. (2008). An Approach to data breach in the global organization.
Oxford, England: Oxford University Press.
Hamel & Prahalad. (2005). Strategic Intent of data security. New York, NY: New York
Broadcasting Company.
Kanter. (2014). Taking care of my information . Penrith, Australia:
Western Sydney University.