Compromised data compromises goodwill. As the public wakes up to how much of its data is in circulation, how long it can be stored and how much value it has, they are rightly demanding that it be properly secured. Consequently, a data breach has become one of the biggest threats to an organisation’s reputation.
As with other crises, it is not necessarily the data breach that damages reputation but the way in which that breach was managed that can tarnish the reputation long after the facts of the story have been forgotten. Conversely, a well-managed response to a data breach can engender trust and enhance an organisation’s reputation.