Every company is unique when it comes to the consequences of a cybersecurity breach. This is also determined on the basis of timing and duration and the nature of industry in which it runs. For instance, a data breach may have a significant consequences for financial sector than manufacturing sector. But every company does face a common set of consequences during a security breach listed as follows:
A cyberattack on a bigshot bank may let the attacker have a huge access to everything, for small businesses defenses are usually less complex and easy to crack into which renders them a softer target. Cyber fraud causes monetary losses, but stolen data can be of much more value to the hackers, particularly when it comes to selling it on the Dark Web.
- Damage to the reputation
Loss of stakeholders and customers’ trust can be the most significant impact of cybercrime on any company as a major chunk of people would not indulge in any business activities with the breached company, particularly if it failed to protect the customer data. This transforms directly into business loss and brand devaluation where you have invested your blood, sweat, and tears into. When a company faces a reputational hit, it also impacts the power to attract the best potential talent, investors, and suppliers.
Apart from direct financial losses, a security breach may also lay down the prospect of monetary penalties for companies that fail to pay heed to the data protection legislation. Nowadays, the global authorities are framing and laying down tougher regulations for the breached companies.
- Monetary losses
Small businesses suffer more than big businesses when it comes to the costs and repercussions of cybercrimes. When it comes to the bigshot companies, the financial effect of a security breach may end up in missions, but when it comes to the scope and scale of the company, the monetary losses are to a bare minimum. Small businesses tend to lose almost everything just from a mere single data breach in the direct expenses alone. This case may render the business out of the market entirely.
- Below the surface costs
Apart from the economic losses from the cybersecurity breach, there are also many intangible costs involved that can impact the business even after the aftermath. The effect of the disruption is usually overlooked, particularly among the companies that pay heed to formal business resilience and continuity strategies. And when it comes to small businesses, they are already striving with the cash flow, insurance premiums, increased costs and raised debt.