​Report: Brand reputation costs $200K to repair

New study by Kaspersky Lab revealed information security incidents have cost enterprises over $200,000 in the past year

Every second company affected by a data leak suffers reputational damage that costs up to $200,000 to repair, a new report claims.

The Kaspersky Lab report, conducted with B2B International, revealed 22 per cent of respondents admitted information about an incident at their company had leaked to the media and been made public. A quarter of companies surveyed said they were forced to seek assistance from external PR consultants.

Reputation damage depends directly on whether or not the incident becomes public knowledge. The cost of repair for enterprises was estimated by the report to be $200,000, while for SMBs it was approximate $8000.

Having the trust of customers and partners can yield higher profits, the report stressed, and a spotless brand reputation plays a key role in establishing that trust. The loss of consumer confidence in a business often leads to lower profits, and sometimes to bankruptcy.

In response to these concerns, the survey further showed that over the last three years, businesses have begun to pay more attention to a positive reputation. Compared to 2013, the number of those turning to third-party communication consultants for help has increased by more than 5 per cent.

Kaspersky Lab head of endpoint product management, Konstantin Voronkov, said it doesn’t matter how big or small your company is – a damaged reputation can harm any business equally.

“In these circumstances, it is important to take all possible measures to ensure information security,” he said. “Complex multi-tier protection of every element of the corporate IT infrastructure will help safeguard the company from both information leaks caused internally and hackers penetrating the network.”

The study was based on a survey of 5,500 IT specialists from 25 countries.

A study in October by brand valuation firm, Brand Finance, found that Volkswagen's ongoing emissions scandal has already wiped $10 billion off the automotive company's brand worth.

Follow CMO on Twitter: @CMOAustralia, take part in the CMO conversation on LinkedIn: CMO ANZ, join us on Facebook: https://www.facebook.com/CMOAustralia, or check us out on Google+: google.com/+CmoAu

Join the newsletter!

Or

Sign up to gain exclusive access to email subscriptions, event invitations, competitions, giveaways, and much more.

Membership is free, and your security and privacy remain protected. View our privacy policy before signing up.

Error: Please check your email address.
Show Comments
cmo-xs-promo

Latest Videos

More Videos

Anyone can become a victim of the sophisticated schemes set up by these scam websites. It's not about being smart; I don't consider mysel...

Mathieu Lecompte

ACCC takes Meta to court over scam cryptocurrency advertising

Read more

Nice blog!Blog is really informative , valuable.keep updating us with such amazing blogs.influencer agency in Melbourne

Rajat Kumar

Why flipping Status Quo Bias is the key to B2B marketing success

Read more

good this information are very helpful for millions of peoples customer loyalty Consultant is an important part of every business.

Tom Devid

Report: 4 ways to generate customer loyalty

Read more

Great post, thanks for sharing such a informative content.

CodeWare Limited

APAC software company brings on first VP of growth

Read more

This article highlights Gartner’s latest digital experience platforms report and how they are influencing content operations ecosystems. ...

vikram Roy

Gartner 2022 Digital Experience Platforms reveals leading vendor players

Read more

Blog Posts

​Why we need to look at the whole brand puzzle, not just play with the pieces

Creating meaningful brands should be a holistic and considered process. However, all too frequently it’s one that is disparate and reactive, where one objective is prioritized at the expense of all others. So, what are the key pieces to the ‘good’ brand puzzle?

Marketing overseas? 4 ways to make your message stick

Companies encounter a variety of challenges when it comes to marketing overseas. Marketing departments often don’t know much about the business and cultural context of the international audiences they are trying to reach. Sometimes they are also unsure about what kind of marketing they should be doing.

Cynthia Dearin

Author, business strategist, advisor

From unconscious to reflective: What level of data user are you?

Using data is a hot topic right now. Leaders are realising data can no longer just be the responsibility of dedicated analysts or staff with ‘data’ in their title or role description.

Dr Selena Fisk

Data expert, author

Sign in