As the technology has advanced there has been a rise in security threats from internal and external sources. Employees and insiders, malicious hackers, and foreign adversaries may be three of the common sources of security threats to businesses. Employees and insiders have access to large amounts of confidential information that they may leak to outside sources and work against the interests of the company. As the intra-networks of the organization provide access to employees to shared information, it has become difficult for employers to regulate information. Adding on, the hacking business has gained momentum in recent years. Professional hackers are not only difficult to identify, but they are also difficult to trace. Many organizations have faced huge losses because of their systems being hacked and information leaked. Technology and globalization have lent businesses towards international competition and threats. Increasingly, security threats are posed from sources outside the firm’s home country. Foreign adversaries may attack the firm through a hacking program; thus, it could be considered as a form of malicious hacking.
One of the most prominent losses as a result of a security breach is the loss of confidential information. Some data is for the sole purpose of the organization and may harm the organization if competitors gain access to this information. Second, the organization may be working on a new product or market and if this information is leaked competitors may enter the market first or develop a strategy beforehand to react once the product is launched or market exploited. Third, employee morale may be adversely affected if the news of downsizing is leaked before the officials announce it. Fourth, customers may also change loyalties if any wrong information is publicized about the company and this would affect the revenues of the firm. Fifth, shareholders may sell shares if potential losses of the firm are revealed through insider traders. Eventually, all kinds of security losses would impact the financial strength of the company (CSO online).
References
The 15 worst data security breaches of the 21st Century. (n.d.). CSO Online. Retrieved October 16, 2014, from http://www.csoonline.com/article/2130877/data-protection/the-15-worst-data-security-breaches-of-the-21st-century.html
