iscover
Share this article on:
Powered by
MOMENTUM
MEDIA
New research shows that how companies act after a breach has occurred can greatly impact a brand – for better or worse.
Public relations firm Porter Novelli Australia has released a report called Cyber Security Incidents: A Call to Action, which details the impact of data breaches on Australians and how companies can respond to them.
Data breaches affect Australian individuals in a variety of ways, from needing to take time off work during the cost-of-living crisis to needing to change personal documents or financial details.
But regardless of the impact, how a company that lost data handles the incident can have a lasting impact on its brand and its relationship with its customers.
The research has found that 48 per cent of Australians have reported some form of emotional distress following a data breach. Nine per cent have had to take a day off work to deal with the fallout of a breach, and 30 per cent have had to ditch impacted ID documents in favour of new ones. On top of that, 22 per cent have had to change their bank account details.
Given the widespread nature of data breaches in the country over the last 18 months, fewer Australians than ever now feel that companies are doing enough to protect their data. Only 41 per cent of people trust companies are doing the right thing, though 64 per cent believe it should be possible to protect data.
According to Rhys Ryan, Porter Novelli Australia’s chief executive, data breaches are now a fact of life, but organisations can still choose how they respond to them.
“Once you’ve had a serious breach, you no longer have an IT problem. You have a human problem, a reputation problem, a communications problem and a governance problem,” Ryan said in a statement.
“Organisations often forget the human experience of having personal information stolen. Instead, they focus on operations and their regulatory obligations – which are important – but they neglect the fragile trust they have built with customers, employees and stakeholders.
“However, our research shows that organisations that act quickly and operate in a way that is consistent with the values they have communicated to customers in the past are most likely to retain trust. Almost half of Australians (44 per cent) said they would use that company again, and more than one-third would recommend it.”
Porter Novelli recommends having a plan in place for clear and empathic communication with customers and that companies treat data breaches as just a regular part of the customer experience.
“For instance, if you’re a consumer-facing brand that prioritises speed of delivery, don’t keep angry consumers waiting on hold – stand up a call centre and give them concierge service,” Ryan said. “If you’re a charity, be extra transparent to demonstrate your values. The short-term costs may be higher, but the long-term downside can be catastrophic if you get it wrong.”
“Sometimes, the way you respond to a crisis can actually enhance trust with your customers – if you behave in a way that aligns what you say with what you do in a crisis.”
You can read the full report here.
David Hollingworth has been writing about technology for over 20 years, and has worked for a range of print and online titles in his career. He is enjoying getting to grips with cyber security, especially when it lets him talk about Lego.
Be the first to hear the latest developments in the cyber industry.
