Data breaches ding reputation, brand.
Organizations that experience a data breach spend a year or more restoring their reputation after the incident, according to a new Ponemon Institute study.
The survey of 843 executives found that an organization's brand value fell 17% to 31% after a breach depending on the type of information lost. Organizations polled estimated the economic value of their brand to be anywhere from $1 million to greater than $10 billion, with an average of $1.5 billion.
Eighty-two percent of respondents said their organization had experienced a breach involving sensitive or confidential information.
Depending on what type of data is stolen, on average, organizations lost between $184 million to more than $330 million in the value of their brand, according to the survey, sponsored by Experian Data Breach Resolution.
More than 53% of respondents said the exposures had a "moderate" impact on their organization's reputation and brand image, while 23% called it "significant," according to the study.
An organization's reputation and brand image is one of its most valuable assets, the Ponemon Institute said.
Respondents estimated a data breach that involves the loss of more than 100,000 confidential employee records and is widely reported by the media would likely result in a 12% decrease in brand value, on average. Meanwhile, the study found that the loss or theft of a small number of sensitive files containing trade secrets, new product designs, or source code would likely lower brand worth by about 18%.