Strong Cyber Security is Paramount to Maintaining Customer Trust

Date:   Sunday , August 23, 2015

Born in 2000, Paladion Networks is a specialized partner for information risk management. The Bangalore based company has been actively managing information risks for over 700 customers.

Cyber Security Threats are Rampant

There is widespread misconception that prioritizing web security is only a relevant concern for large corporations that operate in the public eye, and this leads many businesses to under appreciate the importance of investing in strong cyber protection. With findings from a report released by the Ponemon Institute an industry leader in researching data privacy revealing that a whopping 43 percent of companies experienced a data breach last year alone, customers of medium and small companies are asking their service providers what measures they are taking to protect their personal and financial data.

With the growing threat landscape, it\'s never been more critical for businesses to invest in an information security that protects customer data from the latest cyber threats. All it takes is one major security breach for your customers to lose faith in your business, and this damage to acompany\'s reputation can be irreparable. In addition to the financial losses that you are likely to endure due to the breach itself, there will inevitably be negative long-term ramifications to your organization\'s bottom line.

Poor Planning is to Blame

Given the disastrous outcomes that are to be expected from a data breach, a large number of businesses still do not have adequate cyber protection or a planned response in place. While the number of organizations without a data breach response plan is slowly decreasing, adoption of proactive prevention strategies is still not a common practice.

Cyber Security Planning should also consider that business will not be able to sweep a data breach under the rug. Under U.S. federal and state guidelines, you will almost certainly be required to report the breach to your customers. Similar laws may take effect in other countries soon enough, so organizations should prepare themselves for the change. This will immediately have a detrimental impact on your business\'s stock value, and you\'ll instantly lose credibly in the public eye. Moreover, chances are that your business will face litigation, which can cost your company dearly. In addition to lawsuits, you can expect to pay steep fines if there were lapses in your security, and these penalties far outweigh the cost of investing proactively in cyber security before a breach occurs in the first place.

Putting Your Customer\'s Anxieties to Rest

It is not enough to have a robust information security program any more. Organizations must make sure that customers know that they are taking proactive measures to keep their data protected and their financial transactions safe. Periodic communications on security measures should do the trick here, but what if your customer calls with questions, do you have teams who can address this? Whether it\'s a big client or a small one, if their questions on information security are not addressed it is quiet likely you will lose them to a competitor, who has comprehensive communication strategy. So, preparing a team that can educate customers on the steps the company has taken to protect integrity of data can go a long way in earning customer trust.

Rebuilding Customer Trust

While it\'s certainly ideal for your business to invest in top-tier cyber security before it experiences a data breach, you shouldn\'t underestimate the ability of your company to bounce back by rebuilding customer trust. The most direct means of regaining credibility in the eyes of your clients is by taking public steps to show your commitment to protecting their privacy, and this all starts by placing stronger security measures in place.

A data breach does not have to be a death sentence for your business, but it most definitely should be a wakeup call that cyber protection needs to be incorporated into your business\'s strategy. By investing in stronger data protection, you\'ll be making a powerful statement about your commitment to protecting the confidentiality of your clients, positioning yourself to regain any of the losses entailed by the security breach. Most importantly, your business needs to have a plan in place and this all begins by prioritizing cyber security and giving it the attention that it deserves.