Company reputation and data security breaches. What can be done?
It’s the struggle of all companies small or big to control their content and database. The news of new data security breaches are coming left and right and the potential effect on the firm reputation is significant. Furthermore, excellent corporate reputations can have a strategic value for businesses that all firms must take advantage of. The strategic value can be used to fuel the competitive edge that the firm trying to require. Cooperate Reputation can be defined as the overall assessment of the firm in the heart and mind of all its stakeholders, according to the firm past actions and intended future behavior. Due to the recognition of the importance of the firm reputation and the positive or negative impact it may have, firms have allocated focus and resource to manage it. Firms today try to protect cooperate reputations by insuring the proper conduct of the cooperation as whole and its employees. They do so by engaging in CSR or sound cooperate governance polices. Nonetheless, many have failed to acknowledge the importance of their stakeholder’s data and the potential risk that might have on their reputation.
Control your data before it controls you.
There are always two ways when it comes to data management. Firms are either reactive or proactive. There are many example of firms which had been hit hard by data security breaches and their financial cost. Tesco, for example, had to pay millions in compensations for their data security breach. Other example is Yahoo data security breach that cost them millions as well. The cost of data security breaches can be significant and the impact can be dramatic. Firms must understand that the only way to truly minimize the risk of data security breaches is to be proactive. Businesses must approach their data with the seriousness it needs and must anticipate hackers and other circumstances that might cause data security breach or the improper usage of stakeholder’s personal data. Firms must first locate their critical data before being able to protect it.
The absolute unstructured data chaos within a lot of firms can have severe reputational impact. Consumers today are knowledgeable and very quick responding to changing variables. Whether the story about soldiers exchanging their female colleagues nude pictures or devastating data security breach, all can invoke a negative response from the stakeholders. Consumers put huge emphasis on the brand and what it represents. Most consumer behaviour studies have shown that consumers today have strong emotional connect with the brands. This connection extends the moral and ethical judgment over the brand and creates the moral framework in which the firm is expected to follow. Wrong or deserved rumours of a company in the eye of a significant segment of the market can result in an undesirable outcome. All companies which faced reputational challenges in the past, have seen a dramatic decrease in sales and subsequently profit and value. The impact of reputational crisis can be overwhelming to the point of no recovery. JP Morgan, OPM, Sears, Talk Talk, and Target are an example of data security breach damage on reputation.
It’s in your house it’s your responsibility
For example, data that was sent by a customer or between staff which could be a nude picture or personal information. Data that are not allowed to be used or obtained legally such as child pornography or sensitive data. These data if discovered by the public or the media will have irreversible damage to the cooperate reputation. The perceived image of the brand in the targeted segment will be impacted dramatically.
Companies are unaware of the exposure data can have on their entire system. Whether in an email account sent by customers or sent internally between staff which have critical data. Or an old file somewhere on the back of on old machine connected to your system. The risk of unidentified and forgotten data which considered under your legal responsibility can be devastating.
What can you do ?
Our software is an agentless and powerful scanning solution which discovers, remediates and reports on critical data centrally. Critical data of credit card numbers, names, addresses, PPS number, governments’ ID number, passports, inappropriate images, etc. If it exists in your system we will find it.