Data security costing businesses millions in brand value
Many businesses are aware of the importance of data security, but the majority are still not taking the necessary precautions experts suggest.
According to a new survey by the Ponemon Institute, businesses have lost millions in brand damage from data breaches. Yet 43 percent of organizations did not possess a response plan prior to having a breach.
The average loss in brand equity ranged from $184 million to $330 million, with some companies squandering as much as one-quarter of their total brand value.
"The loss or theft of sensitive customer data, as our study quantifies, can have a serious impact on the economic value of a company's reputation," said Larry Ponemon, the chairman and founder of the Ponemon Institute. "We believe this study makes a powerful point about the importance of taking steps to reduce the likelihood of a data breach."
A recent survey by the National Cyber Security Alliance revealed that, while most small businesses believe having strong cybersecurity is important for their brand, 49 percent fail to have an internet security policy for employees. According to the study, web-based attacks increased 9 percent in 2010.