The cost, scrutiny and pressure of dealing with a data breach will become more apparent in the near future as European legislation takes effect
The EU cyber security and regulatory environment is soon set to change significantly, challenging organisations to rethink how they protect customer data and deal with the consequences when things go wrong. Data breaches remain a primary area of concern. A Deloitte report on the business impact of a cyber attack recently showed that 89% of the impact of a breach comes from three factors:
- Value of lost contract revenue;
- Devaluation of trade name; and
- Lost value of customer relationships.
These conclusions were based on research about US companies, but the questions remain; how relevant are these three factors for EU companies that face similar cyber threats, and how might a changing EU regulatory environment influence this?