Customers put their trust in companies to deliver on promises of security. Think about how quickly most people tick the boxes on required privacy agreements, likely without reading them. They want to believe the companies they choose to associate with have their best interests at heart and expect them to implement the necessary safeguards. The quickest way to lose customers is to betray that confidence, especially when it comes to their personal information.
Hackers understand that, too. They quickly adapt tools and techniques to disrupt that delicate balance. Executives from every business unit need to understand how cybersecurity affects the overall success of their businesses.
Long Lasting Impacts
In our digital world, businesses feel added pressure to maintain this social contract as the prevalence and severity of cyberattacks increase. Respondents to Radware’s global industry survey were definitely feeling the pain: ninety-three percent of the organizations worldwide indicated that they suffered some kind of negative impact to their relationships with customers as a result of cyberattacks.
Data breaches have real and long-lasting business impacts. Quantifiable monetary losses can be directly tied to the aftermath of cyberattacks in lost revenue, unexpected budget expenditures and drops in stock values. Protracted repercussions are most likely to emerge as a result of negative customer experiences, damage to brand reputation and loss of customers.
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Indeed, expenditures related to cyberattacks are often realized over the course of several years. Here, we highlight recent massive data breaches–which could have been avoided with careful security hygiene and diligence to publicly reported system exploits:
The bottom line? Management boards and directorates should understand the impact of cyberattacks on their businesses. They should also prioritize how much liability they can absorb and what is considered a major risk to business continuity.