Breach Costs
Breaches have wide-reaching, disruptive, and costly impacts:
Lost business opportunity, including customer churn and higher acquisition losses
Fines and penalties, including restitution costs if customers are harmed
Lawsuits, including class-action law suits if customers are harmed
Direct operational costs, including legal, notifications, credit monitoring, consultants, call center, forensics, system repair, marketing, public relations
Lost productivity dealing with customer concerns, the press and legal responsibilities
Increased regulatory oversight and costs, including regular independent audits
Officer personal liability
Stock devaluation
The biggest surprise realized by CEOs after a breach is the lengthy adverse impact on key executive productivity, dealing with the media, customers and other stakeholders in crisis management mode to restore company reputation and customer trust.
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