It has a detrimental impact on your business and can result in business closure.
Without client trust in your business (your brand), you not only lose sales, you gain negative brand advocates that can turn potential clients away from your business as well. (Bad news travels fast, more so these days with social media)!
Client trust is so vital in today’s digital environment where client expectations are increasing, competition is fierce, and clients have a ‘public voice’. Even for small and medium size businesses, it is a brand differentiator (your businesses reputation and values) that could make or break your business. You only have to look at the recent scandals around Facebook or the Australian Banks to see this happening.
The good news is that the degree of negative impact on your business from a privacy breach is in your hands. With a well-prepared ‘Data Breach Response’ (DBR) plan.
If a privacy breach is handled well, it can possibly restore and even enhance your brand’s reputation. It illustrates to your clients that your business genuinely cares about them and their needs.
Statistics of privacy breaches and the negative impact on businesses:
During 2017 in Australia, 43% of cyber-attacks targeted small businesses. Out of those, 22% have closed*. The common thread for many of the closures was poor preparation and handling of the breach resulting in loss of trust, and ultimately clients.
*Australian Small Business and Family Enterprise Ombudsman Cyber Security Guide – 2018
It is important to remember that time matters!
Regardless of the time, effort and investment you have made in building client trust, a delayed response, decision and action post breach – is a poorly handled breach. It will significantly increase negative impacts on your business, its reputation, resulting in loss of client loyalty and sales.
KEY TIPS – for developing and sustaining a Data Breach Response (DBR) plan:
- Develop the plan with Privacy Experts (leverage accessible information from trusted resources) and with your key staff (leverage internal knowledge, to gain commitment)
- Conduct on-going reviews of the plan (at least annually or when significant changes take place internally or externally)
- Conduct regular staff training for those who handle personal information (plus include training in Staff Induction programs)
- Conduct a mock drill at least once every two years.
KEY BENEFITS – your business can gain with a well-prepared DBR plan:
- A clear and structured process during stressful times of a breach
- Quickly brings the right people together to respond effectively (such as IT, legal, etc)
- Documented findings and outcomes of the breach situation (know what’s happened and the potential consequences)
- Effective reports available for management to understand and make an informed decision
- Minimise likelihood of a re-occurrence of the breach by documented recommendations to upgrade policies and practices
- Documented evidence of the assessment being conducted to validate effective handling of a breach.
A SMART CHOICE – to minimise negative impact of a breach on your business, speak with the experts at Privacy Proactive. We can help you:
- Implement a tailored Data Breach Response (DBR) plan aligned with your business needs
- Provide you with support during a privacy breach
- Ensure regulatory changes are built into your DBR plan immediately
- Review your DBR plan annually
- Provide DBR training annually to make sure everyone in your business understands their responsibilities.