When a breach occurs on a small- or medium-sized business, and they have customer data exposed, the business has a 60% rate of closing within 6 months. What causes the most financial impact on the business?
A. legal action
B. data loss
C. reputational damage
D. operational disruptions
C. reputational damage
Reputational damage can have long-lasting effects on a business, impacting customer trust, loyalty, and future revenue. This can lead to a significant loss in customers and potential revenue. Additionally, the cost of rebuilding a damaged reputation can be high and time-consuming for a small- or medium-sized business.