Question

Security Breaches Quick Check 3 of 53 of 5 Items Question When a breach occurs on a small- or medium-sized business, and they have customer data exposed, the business has a 60% rate of closing within 6 months. What causes the most financial impact on the business?(1 point) Responses data loss data loss reputational damage reputational damage operational disruptions operational disruptions legal action legal action Skip to navigation page 9 of 9

Answer 1

The most significant financial impact on a business following a data breach that exposes customer data is typically **reputational damage**. Losing customer trust can lead to a decline in sales and customer retention, which can be more detrimental in the long run than the immediate costs associated with data loss, operational disruptions, or legal actions.