What does data mean in today’s business world?
|The puts the average cost of a data breach at , with healthcare being the most costly industry. The average time taken to identify and contain a data breach is a whopping 279 days. As expected, the shorter the lifecycle of the breach, the better. A breach lasting under 200 days costs $1.2 million less than one with a life cycle longer than 200 days.|
How losing data can affect your business?
1. Productivity disruption
|According to Datto: “An hour of downtime costs for a small company, for a medium company and for a large enterprise.” For large enterprises, this equates to around .|
2. Loss of reputation
3. Loss of confidential data
|For businesses that did not adhere to these regulations, fines could be issued to the organization to the tune of up to for failure to comply with the Data Protection Act 2018|
The Information Commissioner’s Office (ICO) has fined Cathay Pacific Airways £500,000 for failing to protect customers’ personal data. The UK watchdog said the airline’s computer systems had exposed details of 111,578 UK residents and a further 9.4 million people from other countries. (Cathay Pacific fined £500,000 over customer data. (2020, March 4). BBC News. https://www.bbc.com/news/technology-51736857)
4. Permanent failure
small firms that experience a major data loss go out of business within a year.
of companies suffering from a catastrophic data loss do not survive – never reopen, and close within two years.
5. Losing customers loyalty
(The Scary Effect of Data Breaches on Your Customers’ Loyalty. (n.d.).
Retrieved August 7, 2020,
from https://www.digitalinformationworld.com/2019/02/effect-of-data-breaches-on-customers.html) Let’s take a look at one of the most significant data breaches in the 21st century, and its impact on the organisation whose customer data was hacked. Yahoo used to be an Internet giant. According to Lauren Johnson, Yahoo was seen as a digital pioneer. It was launched in 1994 by David Filo and Jerry Yang. Twenty-two years later when it was sold to Verizon in 2016, it had moved from a global Internet giant to a company that was struggling to compete in the same space as other search engine giants like Google. What made matters worse, was that while Yahoo was negotiating with Verizon, the company announced that in 2013-2014, its data servers were hacked a number of times and 3 billion accounts were affected. The details that were stolen across all the hacks were customer names, email addresses, phone numbers, dates of birth, passwords, as well as security questions and answers. However, the sale price reduction was just a minor consequence of the data breaches. The bottom line is that consumers do not trust Yahoo to keep their private data secure.