Reputation management of a data breach

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Data security breaches almost always give rise to a risk of reputational damage to the company responsible for controlling and processing the data. From the moment the breach occurs, the media may start making inquiries and/or publish or broadcast allegations about the breach.

Also, there are likely to be worried or angry customers whose data has or may have been disclosed without their consent. They may publicise the matter in social media and/or inform journalists, as well as the regulator.

Whether the breach results from a third-party supplier accidentally leaving a laptop on a train or from sophisticated hackers breaking through firewalls and encryption systems, it can lead to distrust of the company. In turn, this can result in lost sales and/or a dip in share price…

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