A data breach can destroy a business. For small- and medium-sized businesses (SMB), this is really especially concerning, as 60% will shut down within six months of the attack. While larger companies and agencies likely won’t have to shut their doors, they, too, suffer serious consequences. There are financial costs, which Ponemon Institute and IBM determined average $4.24 million, with 38% of that total coming from lost business. The hit to a company’s reputation after a breach takes its toll; consumers want to conduct business at companies that they deem safe. At least, they want to conduct business with those capable of keeping attackers away from their personal data.
Those are the external data breach consequences that every organization should be familiar with. But there is another price to pay for cyber incidents and that is the internal impact after the initial fallout. It will affect every department within the company in some way.
A Data Breach Can Pit the CEO Against the CISO
In the past, the CEO could raise their hands and say, “Hey, that data breach is the fault of the chief information officer (CISO). They’re in charge of protecting the company, not me.”
That’s not the case anymore. As the face of the company, people hold the CEO at fault. That includes consumers who walk away and shareholders who feel financial impacts. Those folks don’t understand the inner workings of cybersecurity systems. So, of course, the CEO is going to be the fall guy. And sometimes they deserve that.
Cyber incidents put leadership in the spotlight, and not in a good way. A massive breach in a well-known com ..
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