Which of the following is a potential effect of a data breach?

A data breach typically has significant negative repercussions for an organization, and the potential for long-term financial loss and damage to its reputation is a primary concern. When sensitive customer information is compromised, it can lead to costly legal fees, regulatory fines, and loss of business due to diminished consumer trust. Additionally, the reputational harm can last for years, making it challenging to regain customer confidence and potentially leading to a decrease in customer loyalty.

Financially, the immediate costs associated with addressing the breach—such as forensic investigations, public relations efforts, and implementing tighter security measures—can be substantial. Over time, the loss of customers and diminished sales performance can result in ongoing revenue impacts, affecting the organization's bottom line. The cumulative effect of these factors contributes to the long-term financial strain and reputational damage that often follow a data breach.

The other options suggest positive outcomes, which are generally not associated with the fallout from a data breach. Instead of increasing trust, a breach tends to erode customer confidence. Similarly, a data breach is unlikely to lead to increased sales, growth, or improved employee morale; rather, it often has the opposite effect, causing anxiety and dissatisfaction among both customers and employees.