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All risks carry costs, whether tangible or intangible. which of the following is closely related to negative perceptions of an organization after a security breach?

a) loss of business
b) loss of prospective business
c) loss of reputation
d) fines and penalties

1 Answer

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Final answer:

The aspect most related to negative perceptions of an organization after a security breach is the loss of reputation. (option c)

Step-by-step explanation:

All risks carry costs, whether tangible or intangible and in the context of a security breach, the aspect that is most closely related to negative perceptions of an organization is loss of reputation. This intangible cost can have a profound impact on an organization's standing and trust with its customers, often more so than immediate financial loss or fines. In the digital age, online privacy, security, and control are critical concerns, and companies are judged heavily on their ability to safeguard consumer data. Negative perceptions following a breach can discourage existing and potential customers, leading to a loss of business and prospective business. Moreover, these perceptions can also influence investor confidence and market valuation.

For example, a bank experiencing public fear of insolvency could fail simply due to mass withdrawals, which is a situation similar to how a company might experience a significant loss of customers after a security incident. Additionally, concerns regarding national security, financial theft, and identity theft can escalate the perceived severity of a breach. As a consequence, companies face the long-term challenge of not only rectifying the breach but also rebuilding reputation and trust.

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