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Firms lose 12% of their brand value from data breaches, survey finds

"No industry is immune", says Ozzie Fonseca, director at Experian Data Breach Resolution
"No industry is immune", says Ozzie Fonseca, director at Experian Data Breach Resolution

The average loss in the value of the brand ranged from $184 million to more than $330 million, with an average brand value prior to the breach of $1.5 billion, according to a survey of 850 executives. It takes companies on average one year to recover the lost value.

The survey found that 43% of the companies represented in the survey had not instituted a data breach incident response plan prior to having such a breach. Companies spend time putting crisis plans together, but they are not including data breaches as part of this plan, according to the survey. In addition, most companies reported that they had experienced more than one data breach in the past few years.

"The loss or theft of sensitive customer data, as our study quantifies, can have a serious impact on the economic value of a company's reputation", said Larry Ponemon, chairman of the Ponemon Institute. "We believe this study makes a powerful point about the importance of taking steps to reduce the likelihood of a data breach."

Ozzie Fonseca, director at Experian Data Breach Resolution, added: "The way business protocols worked five years ago, even two years ago, has drastically changed, and we must prepare ourselves for the new threats to data and privacy. Data breaches are happening to all businesses – small, medium and large – and no industry is immune."

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