There are many ways a cyber attack can affect an organisation, and the impact will vary depending on the nature and severity of the attack. One common occurrence is that data breaches have significant costs - in more ways than you may initially expect.
Cyber attacks are an increasingly prominent issue, yet many companies fail to take appropriate security measures despite the potential implications of an attack. The consequences of cyber attacks can cause irreversible damage, with 60% of small businesses collapsing within six months following a cyber attack.
Cyber security needs to be a business priority, starting with cyber security awareness throughout your entire team, and technical training for your cyber security team.
Loss of Earnings
Reputational damage caused by cyber threats can cause long-lasting effects, including business downtime and loss of customers - leading to temporary loss of earnings.
Loss of income typically results from the inability to operate, loss of intellectual property, the cost of attempting to recover lost information, equipment or data, and in some cases, ransom payments or stolen money.
In early 2021, insurance giant CNA Financial sustained a ransomware attack that caused widespread network disruption and impacted several internal systems. To regain control of their network, CNA Financial reportedly paid an eye-watering $40 million in ransom costs.
For any business, productivity, efficiency and continuity are vital for ongoing operations; therefore operational disruption is one of the most significant negative effects of cyber attacks. Cyber attacks can cause considerable disruption to business, including the inability to carry out communications, transactions or other core operations.
Downtime can be detrimental to operations and often includes the need to repair networks, build temporary infrastructure, and seek alternative business operations to continue functioning.
Following a cyber attack, it’s crucial to conduct an investigation, also known as an incident post-mortem, to identify the causes of the threat and analyse how it could have been prevented or mitigated.
Customers need to feel safe using your services, with trust an essential element of a customer relationship. 81% of consumers state that trust is a deciding factor in their purchase journey, therefore gaining trust is integral in retaining brand loyalty.
The most permanent harm you can inflict on your business is losing customers' trust. Unfortunately, you can lose their trust in a matter of minutes if you experience a breach as a result of a cyber attack.
A breach in your network can not only lead to the loss of trust from consumers but can also cause irreparable reputational damage. It is far swifter to mitigate the risk of breach than damage control this consequence.
Penalties and Compensation
If confidential data has been compromised, lost or misused, then those individuals may be entitled to claim financial compensation, also known as data breach compensation. The amount owed will vary depending on the nature of the breach and any financial damages incurred to those individuals.
Penalties for non-compliance with data protection regulations can also result in fines, enforcement notices, and further investigations that can lead to misconduct.
DiDi Global, the world's leading mobile transportation platform, was fined 8.026 billion yuan (equivalent to $1.19 billion, £1 billion); the highest ever recorded penalty for data breaches and non-compliance with security and privacy laws. Further investigations into the breach discovered weak security practices and violations of data security law, network security law, and personal information protection law.
Making Cyber Security a Priority
All businesses, regardless of size, must ensure the workforce understands cyber security threats and how best to avoid or mitigate them. Having better cyber security awareness can, in many cases, prevent these threats from taking place.
TryHackMe was launched to allow users to train and upskill in cyber security - from the beginner with no prior experience to the seasoned hacker looking to stay on top of attack trends and evolutions. Businesses partner with us to create branded learning paths that align with skill requirements, giving teams relevant, engaging, personalised training.
We host a management dashboard allowing progress monitoring across your platform to understand how effectively teams learn. Essentially, we help upskill your team to mitigate the risk of cyber attacks, which can be a pillar of your cyber security strategy.