What is a primary risk related to data breaches?

The primary risk related to data breaches encompasses both loss of revenue and legal consequences. When sensitive data is compromised, organizations often face significant financial impacts due to loss of revenue as customers lose trust, may take their business elsewhere, and the organization may incur expenses related to incident response, public relations efforts, and enhanced security measures.

Legal consequences also play a critical role. Companies might face lawsuits, regulatory fines, and other legal repercussions as a result of failing to protect sensitive data in accordance with data protection laws and regulations. The financial and reputational damage caused by data breaches can be substantial, leading to long-term challenges for the affected organization.

In summary, acknowledging both the loss of revenue and the potential for legal consequences as primary risks provides a comprehensive view of the impact of data breaches. This dual perspective is essential for organizations to strategically address and mitigate risks associated with data security.