Don’t Let a Data Breach Kill Your Corporate Reputation

Don’t Let a Data Breach Kill Your Corporate Reputation

Following a data breach, companies undoubtedly tally the financial impact in terms of the time and money it takes to respond to and recover from the breach—but do most organizations also quantify the impact on their corporate reputation or brand value? If yours doesn’t, it should. A recent survey conducted by the Ponemon Institute and sponsored by Experian Data Breach Resolution tells us the reputational cost is far from chump change. According to the survey, the average loss in brand value as a result of a data breach ranges from $184 million to more than $330 million. This amount equated to somewhere between a 12 percent and a 25 percent loss of brand value. The survey also indicated that it takes an average of a full year to restore a company’s reputation following a breach.

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