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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%.

COPYRIGHT 2012 Association of Records Managers & Administrators (ARMA)
No portion of this article can be reproduced without the express written permission from the copyright holder.
Copyright 2012 Gale, Cengage Learning. All rights reserved.

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Title Annotation:STUDY
Publication:Information Management Journal
Article Type:Survey
Geographic Code:1USA
Date:Jan 1, 2012
Words:242
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