What is a common consequence of a data breach for an organization?

What is a common consequence of a data breach for an organization?

• A. Increased consumer trust
• B. Financial loss
• C. More effective data protection
• D. Expansion of business

Answer: (B)

A common consequence of a data breach for an organization is financial loss. When a data breach occurs, organizations often face significant costs related to remediation efforts, which can include repairing the breached systems, conducting forensic investigations, and implementing additional security measures to prevent future incidents. Furthermore, organizations may incur costs related to regulatory fines and legal fees if they are found negligent in protecting sensitive data. Additionally, a data breach can lead to a loss of customer trust and reputational damage, which can impact future revenue streams and result in long-term financial implications. This combination of immediate and ongoing costs highlights why financial loss is a prevalent outcome of a data breach.

A common consequence of a data breach for an organization is financial loss. When a data breach occurs, organizations often face significant costs related to remediation efforts, which can include repairing the breached systems, conducting forensic investigations, and implementing additional security measures to prevent future incidents. Furthermore, organizations may incur costs related to regulatory fines and legal fees if they are found negligent in protecting sensitive data. Additionally, a data breach can lead to a loss of customer trust and reputational damage, which can impact future revenue streams and result in long-term financial implications. This combination of immediate and ongoing costs highlights why financial loss is a prevalent outcome of a data breach.