March 16, 2012
How you can Save the Brand Soon After a Information Breach
So many high profile companies, government agencies and organizations suffered dramatic data breaches in 2011. Some of the largest cyber crimes took place last year and affected tens of millions of consumers and employees. Many security experts and analysts have called it “The Year of the Breach”.
Besides the privacy and information that was lost, these attacks price American companies over $6.5 billion. About $318 per client record compromised. However the monetary expenses are just 1 aspect from the cost that a company or organization will spend following a large-scale information breach, particularly if the information loss may be pointed to corporate mismanagement. For instance in April 2011, it took five days prior to Sony went public and acknowledged the breach of their PlayStation Network.
“A lack of candor is the biggest failing,” says Stewart Baker, a partner at Steptoe & Johnson in Washington, DC and the first Assistant Secretary for Policy at the Department of Homeland Security. “Companies don’t like to talk about breaches, or admit what they don’t know.”