Data Breaches Costing Companies Millions in Brand Value

According to the latest report from the Ponemon Institute, companies are losing much more than information as a result of data breaches.

Enterprise IT managers already know the importance role of data protection for satisfying business demands and achieving regulatory compliance. However, companies have often struggled placing a monetary value on the damages resulting from a data breach.

In a recent survey of nearly 850 business executives, Ponemon Institute researchers may have provided the most accurate, quantifiable analysis to date. According to the study, the average reported loss in brand value among companies experiencing a data breach ranged from $184 million to $330 million depending upon the nature of the event. This represented a 12 to 25 percent drop in total brand value, the report said.

"A solid reputation is a company's greatest asset," the report stated. "[It is] imperative that business leaders take precautionary steps to protect themselves, their customers, their employees and their intellectual property against data breaches."

To protect enterprise IT networks from internal and external threats, analysts encouraged administrators to segment data storage, bolster access governance and responsibly manage both digital and physical resources.