Data Breach: The Damage It Can Cause

Data Breach The Damage It Can Cause

With the current state of information technology, many organizations, both big and small, are faced with the greatest threat of data breach.

It remains a challenge even with the improved measures to protect against it.

The good news is that you can take the right measures as an organization and minimize the risks of a data breach.

Data Breach The Damage It Can Cause

But first, you may wonder what are the damages associated with a data breach? Why should you be extra wary of your organization being a victim of it in the first place?

Here is a quick look into the damages a data breach can cause to an organization

  • Financial Loss

Loss of revenue is the biggest cost an organization can incur in the event of a data breach. The organization is likely to miss on profitability due to costs of managing a data breach, customer compensation and to an extent decreased value in its share. All these combined will most likely see an organization’s revenue dwindle.

  • Operational Disruptions.

The hackers will interfere with the normal operations of an organization. It is reported that a hacker could take the shortest time to gain access into an organisations network.

 After their networks being compromised, up to 80% of the organizations could take weeks or even months to realize such an attack occurred. Unfortunately, it could take a lot of time to come up with a solution, and that way, all the normal operations are put in jeopardy.

  • Reputational damage

Your organization’s image is very sensitive. Just a little comprise and the word spreads like bush fire. The news of an attack on a particular organization could spread fast than the business of the organization itself.

No matter how small the breach could be, this will deal a big blow to the organization’s reputation. It could lead to even loss of existing and future customers if the aftermath is not well taken care of.

  • Loss of intellectual property

This is likely to happen in the case of organizations dealing with designs or other intellectual properties. Mostly, the hackers will always leak and try to sell whatever information they steal from an organization. And this could lead to competitors getting to learn your secrets or worse still, end up losing intellectual properties like patents.

  • Legal ramifications

Data breaches have led to loss and exposure of sensitive customer data held by organizations. And no one will take it lightly when his or her personal information has been compromised and even accessed by unauthorized persons. That’s why a lawsuit is inevitable in case an organization has been hacked. Some have even experienced very heavy costs in legal ramifications to a point of closing down.

How to prevent a data breach?

There are various measures an organization can take to protect itself against hackers:

  • Encryption of sensitive data
  • Embracing multifactor authentication and strong credentials
  • Organizations should upgrade software frequently
  • Patching and updating of software
  • Put in place a comprehensive and security policy and follow it strictly


A data breach is a real challenge and no organization is safe. The hardest part is you can’t predict when it will happen and the cost. However, with best data practices organizations prevent hackers from attacking their precious data. Also, this will protect organizations from crumbling to a halt due to data breach.

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