Business Impacts of a Cyber Breach
Cyber breaches are becoming all too common, every single day there are new reports of organizations suffering from an attack in the news. The latest IBM Data Breach Report revealed that 83% of organizations experienced more than one data breach during the last calendar year. According to the 2022 Verizon Data Breach Investigations Report, the total number of ransomware attacks rose by 13%, which is a rise equal to the last five years combined.
When a business experiences a cyber breach, often the monetary impact is what most people focus on. But the impact reaches further. When an organization suffers a cyber breach, their stock value tanks. Although fluctuations in stock prices may be a breeze for some executives to manage, the lasting effects of cyber incidents on companies are becoming more evident.
A cyber incident will directly consume a company’s resources, leading to an increased cost of doing business. This increased cost is passed down to everyone the company does business with. Cyber risks can result in a decreased credit standing, impacting a company’s ability and cost to secure financing. A cyber breach is the unfortunate gift that keeps on giving.
The impact can reverberate throughout the entire supply chain as well, creating a ripple effect that can negatively damage a company’s business ecosystem. We often hear about the short-term impact of a cyberattack, but no one really understands or discusses the long-term impact. Competitive advantage takes a hit, there is a reduction in credit rating, and your cyber insurance premiums rise. Those are tough factors to come back from.
Your organization needs a cybersecurity strategy. You need someone within your business championing these efforts. Security solutions are a key piece of the strategy as well. There is no absolute protection against a cyber breach or cyberattack, but you certainly can put up a good fight. Need help with your cybersecurity strategy? Let the team at 2W Tech help.