THE DEBRIEF
• Strategy : A data breach can cause serious disruptions to operations , leading to losses in productivity and revenue . Impacting the company ’ s ability to achieve strategic objectives and in some cases cause complete revisions in strategic direction depending on the data breach ’ s severity .
• Financial performance : With the average data breach costing millions , significant financial losses are not only at the fee for a breach but cascade to costs of incident response , investigation and further legal fees . These are the short-term affects but in the long-term these losses can continue as businesses experience loss of revenue as productivity has been impacted as well as reductions in customer base and market valve – seriously impacting the C-suite ’ s financial goals .
• Risk management : A data breach exposes the company to regulatory fines and legal action . The board is responsible for identifying and mitigating risks , including the risk of data breaches , to ensure the company ’ s continued success . Holding your data team accountable for breaches is no longer enough to keep protected . Responsibility for your data sits at the top of the funnel .
• Corporate governance : Any media attention from legal action and regulatory fines can hugely impact the company ’ s reputation and shareholder value . As well as loss of customer trust and confidence equally furthers revenue instability and market value . Responsibility for ethical and legal standards sits at the C-suite level , including the protection of customer and shareholder data .
Too many senior leaders are still relying on the network security team to safeguard data . They are not inquiring enough to identify any potential risks to the business , which can be considered reckless . Neglecting to safeguard data is equivalent to failing to protect the company , its employees and shareholder value . Therefore , it is imperative that the C-suite must understand the significance of data security and the impact it has on their accountability .
What is the solution ?
Traditionally , when it comes to data management the C-suite would hire a Chief Risk Manager and a team to manage its data and the responsibility would sit with them and not be classed as a wider business issue . However , CEOs are now personally liable for failing to meet regulations , making data protection a wider business issue that requires a shift in mindset .
A crucial element of data protection sits at keeping data secure across its entire journey , from the source right the way through to its destination . Encrypting the data to keep it protected .
Encrypted security measures can shield the data from unauthorised access , rendering it useless even if a hacker gains access . This means that in the event of a breach , the company will not be held liable for data stolen , fines , reputational damage or the personal liability of the senior team .
The responsibility of implementing the appropriate security frameworks lies with senior management , who should conduct internal audits to ensure that only authorised individuals have access to the data and that it is unusable to any other unauthorised recipient . Hence , a data-driven approach is crucial for effective security measures and complete protection of the business . �
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