Protecting your Reputation in an Age of Cyber Breaches

Why reputation matters

A mention of Bentley conjures images of high-end luxury. The Apple icon signifies sleek, innovative technology. These brands are valuable to their companies because customers trust them – and trust generates sales.

The opposite is also true. When a brand becomes associated with negative messages, damage can be extensive – and data protection represents a growing risk. Companies that have made headlines after experiencing data breaches have become almost too numerous to mention. Meanwhile, a 2012 Financial Times article identified a survey by Edelman PR that found 70 percent of customers are more concerned about data security and privacy than they were five years ago, and 85 percent believe companies should take data protection more seriously than they do.

If your company collects and stores data, a data breach is possible. Consider these statistics:

• A government/PwC 2015 Information Security Breaches Survey found that 90 percent of large UK organizations had suffered a security breach in 2015 (up from 81 percent in 2014), and 74 percent of small organizations had suffered a breach (up from 60 percent in 2014).
• An IBM/Ponemon Institute global study found that the average total cost of a data breach had increased to approximately £2.63 million.

Bad things can happen to good companies, but you can take these steps to help safeguard your reputation:

Understand your risks

Data breaches, product failures, customer complaints or social media attacks can all pose risks. Identify assets you can use to defend or repair your reputation.

Form a response plan

If a data breach occurs, who will notify the authorities, address the media and contact customers? Your plan should include timelines and clarify responsibilities so you don’t have to make certain key decisions during a crisis.

Transfer your risk

Many types of insurance include coverage for cyber incidents, including reputation management and PR services.

Build relationships

Before a crisis, partner with companies who can provide reputation management assistance. Ensure they understand your company’s values and goals, market position and brand value.

Develop a communications plan

The first hours and days following a crisis can make a significant difference in how customers and the public perceive you. The UK government also provides guidance, such as the Cyber Essentials scheme and accreditation, to help companies manage cyber risks.

Remember what customers want

The Online Trust Alliance says after a breach, customers want to know what, how and when and incident occurred, who was impacted and how you are helping them, how you will prevent fraudulent use of stolen data, and how you are keeping all customers informed.