​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

More Videos

Thank you for sharing your knowledge. Definitely bookmarked for future reading! Check this website https://a2designlab.com/ with lots of ...

Pierce Fabreverg

Study: Gen Z are huge opportunity for brands

Read more

Thanks for sharing. You might want to check this website https://lagimcardgame.com/. An up and coming strategic card game wherein the cha...

Pierce Fabreverg

Board games distributor partners with Deliveroo in business strategy pivot

Read more

Such an important campaign, dyslexia certainly need more awareness. Amazing to see the work Code Read is doing. On the same note we are a...

Hugo

New campaign aims to build understanding around scope and impact of dyslexia

Read more

Great Job on this article! It demonstrates how much creativity, strategy and effort actually goes to produce such unique logo and brandin...

Pierce Fabreverg

Does your brand need a personality review? - Brand vision - CMO Australia

Read more

Here’s an article on solving the most complex customer queries without a delay. Hope it helpswww.engati.com/blog/address...

soham

How to manage social media during Covid-19

Read more

Blog Posts

A few behavioural economics lesson to get your brand on top of the travel list

Understanding the core principles of Behavioural Economics will give players in the travel industry a major competitive advantage when restrictions lift and travellers begin to book again. And there are a few insights in here for the rest of the marketing community, too.

Dan Monheit

Co-founder, Hardhat

Predicting the Future: Marketing science or marketing myth?

Unicorns, the Sunken City of Atlantis, Zeus: They are very famous. So famous in fact, that we often think twice about whether they are real or not. Sometimes if we talk about something widely enough, and for long enough, even the strangest fiction can seem like fact. But ultimately it is still fiction - stories we make up and tell ourselves over and over until we believe.

Kathy Benson

Chief client officer, Ipsos

Winning means losing in the game of customer retention

At a time of uncertainty and economic hardship, customer retention takes on much greater importance. CX Lavender’s Linda O’Grady examines the big grey area between ‘all’ and ‘best’ customers when deciding who is worth fighting for and how.

Linda O'Grady

Data Strategy Partner & Business Partner, CX Lavender

Sign in