​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

Hey there! Very interesting article, thank you for your input! I found particularly interesting the part where you mentioned that certain...

Martin Valovič

Companies don’t have policies to disrupt traditional business models: Forrester’s McQuivey

Read more

I too am regularly surprised at how little care a large swathe of consumers take over the sharing and use of their personal data. As a m...

Catherine Stenson

Have customers really changed? - Marketing edge - CMO Australia

Read more

The biggest concern is the lack of awareness among marketers and the most important thing is the transparency and consent.

Joe Hawks

Data privacy 2021: What should be front and centre for the CMO right now

Read more

Thanks for giving these awesome suggestions. It's very in-depth and informative!sell property online

Joe Hawks

The new rules of Millennial marketing in 2021

Read more

In these tough times finding an earning opportunity that can be weaved into your lifestyle is hard. Doordash fits the bill nicely until y...

Fred Lawrence

DoorDash launches in Australia

Read more

Blog Posts

Highlights of 2020 deliver necessity for Circular Economies

The lessons emerging from a year like 2020 are what make the highlights, not necessarily what we gained. One of these is renewed emphasis on sustainability, and by this, I mean complete circular sustainability.

Katja Forbes

Managing director of Designit, Australia and New Zealand

Have customers really changed?

The past 12 months have been a confronting time for marketers, with each week seemingly bringing a new challenge. Some of the more notable impacts have been customer-centric, driven by shifting priorities, new consumption habits and expectation transfer.

Emilie Tan

Marketing strategist, Alpha Digital

Cultivating engaging content in Account-based Marketing (ABM)

ABM has been the buzzword in digital marketing for a while now, but I feel many companies are yet to really harness its power. The most important elements of ABM are to: Identify the right accounts; listen to these tracked accounts; and hyper-personalise your content to these accounts to truly engage them. It’s this third step where most companies struggle.

Joana Inch

Co-founder and head of digital, Hat Media Australia

Sign in