While all of the listed factors can significantly impact a business following a data breach, reputational damage often causes the most financial impact. When customer trust is compromised, it can lead to loss of business, decreased sales, and long-term challenges in customer loyalty, which can be far more damaging than immediate legal or operational costs.
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
legal action
legal action
operational disruptions
operational disruptions
reputational damage
reputational damage
data loss
1 answer