​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

Latest Videos

Conversations over a cuppa with CMO: Microsoft's Pip Arthur

​In this latest episode of our conversations over a cuppa with CMO, we catch up with the delightful Pip Arthur, Microsoft Australia's chief marketing officer and communications director, to talk about thinking differently, delivering on B2B connection in the crisis, brand purpose and marketing transformation.

More Videos

The versatility of Live Chat is really what surprises me. I’ve seen it being used not only for customer support, but also as a tool to in...

Drishti Shah

Why Bupa tapped WhatsApp for new customer messaging channel

Read more

Hi This is George, Thanks for sharing this nice information about foodpanda blockchain. During this pandemic situation food delivery indu...

George David

foodpanda launches blockchain-based out-of-home advertising campaign

Read more

Did anyone proofread this document before it was published?

Beau Ushay

CMO Momentum 2020: How to embrace agile marketing

Read more

An honest and hardworking conveyancer doesn't need a marketing strategy. His past clients will spread the word for him. These days the ho...

Bagen Andrea

What this millennial marketer is doing to shake up conveyancing

Read more

Love the post. It is so insightful for companies getting stuck in their habits and missing out on the role innovation can have on revenue...

Alessia Del Genio

How Lego built its culture of innovation, brick by brick

Read more

Blog Posts

Innovate or die

It’s hard to know if famed management and marketing guru, Peter Drucker, coined this phrase for dramatic effect. My belief is he was emphasising the notion that few products and markets are static and few organisations can survive without innovation.

Michael Valos

Senior Lecturer, Department of Marketing, Deakin University

Commissioning personas that get used

How to avoid the bottom drawer, and how to get value from the work you’ve paid for

Melanie Wiese

Chief strategy officer, Wunderman Thompson

Why It’s Going To Be A Bumper Holiday Season Despite the Pandemic

Behavioural science expert Dan Monheit, co-founder and strategy director of creative agency, Hardhat, writes that marketing chiefs should hold their nerve, as they have reason to be optimistic

Dan Monheit

Co-founder, Hardhat

Sign in