Data breaches, a phenomenon practically unheard of just a few decades ago, are now one of the most potent threats faced by any large company. With the amount of information they store — both on customers and on the company itself — large companies typically have a centralized database where they store all of these records. Holding a vast amount of data in their hands makes them a target for hackers who seek to use this information for their own gain.
The frequency and severity of cyberattacks like hacks and data leaks are increasing year by year. Hackers are also constantly learning and outpacing data protection officers. Hence, it is important that companies have quick, automated measures in place to deal with security and protection operations.
IT solutions companies such as ServiceNow can help by providing software engines that provide an orchestrated and automated response to security threats and addressing your system vulnerabilities. With this kind of protection, you need not worry about massive security breaches anymore.
Here are some of the consequences that may arise should company systems be left unprotected and you become a victim of a cyberattack.
Diminished credibility and trust
If clients and customers find out that your systems can be hacked, they will think twice about doing business with you again, especially if the nature of your business involves your collecting sensitive information. It is your responsibility to ensure that there are measures in place to keep any data you have safe, and so if you allow such information to fall into the wrong hands, this can only negatively affect your reputation as a trustworthy and professional company.
News of a data breach travels fast, leading to almost instant damage to a company’s credibility. Hence, not only will the company’s image in the eyes of its customers suffer, but you will now have a harder time winning more customers. After all, no one would want to be associated with a company that cannot take care of even the most basic of responsibilities.
Reduced competitive ability
If your company is large enough and doing well financially, hackers will be interested in knowing the strategies and insider information behind the business, as this may offer a competitive edge in the industry. Hence, should such data be leaked to industry rivals or to the general public, this will result in a loss of competitiveness on the company’s part. On top of this, people would be less inclined to work with you if the data leak reveals any negative practices, meaning you could end up losing a lot of business as a result.
Loss of revenue
In the long run, a data breach might end up costing the company much revenue should old clients walk away and business opportunities dry up. In the period immediately following the data breach, however, revenue will also be foregone, given that the most common course of action after discovering a data breach is to cease operations until the cause or source is found. Should the company also not have sufficient security measures in place, you would also have to spend to fix the problem as soon as possible, thereby costing your business even more.
In a time of interconnectedness and increased dependence on technology in storing data, security breaches are almost predictable events. Hence, there is no reason not to have sufficient measures in place to protect your company’s information. If you are serious about avoiding all possible consequences of a cyberattack, it is best to prepare yourself at the soonest possible time.