PixabayThe views expressed herein are the views and opinions of the authors and do not reflect or represent the views of Charles River Associates or any of the organizations with which the authors are affiliated. Companies suffering data breaches often find themselves struggling to navigate the challenges of the so-called “breach triangle,” as a victim, defendant and potential plaintiff. More often than not, the already overwhelming situation is exacerbated by the risks associated with failing to roll out the proper response. According to Kristofer Swanson, Vice President and Forensic Services Practice Leader at Charles River Associates (CRA), “Because there are often numerous economic costs and losses in these situations, companies risk making tactical, legal and disclosure decisions based on incomplete estimates of – or strategically inconsistent approaches to – the comprehensive impact of a cyber-incident.”Which economic consequences are the easiest to identify and quantify? Resnick continued, “However, a company may sustain additional economic consequences, including reputational harm, increased customer or employee turnover, greater cost of capital and lost future profits.”Swanson noted that “some costs may also be recoverable from third parties and/or claimed under existing insurance policies.

Source: Forbes November 28, 2017 14:03 UTC