The ‘curse’ of information

The increasing sophistication of data-hackers means even well-managed data can be at risk. When data loss occurs, reputational damage can be considerable. CEB calculate that following a publicised data breach, companies suffer brand value reductions of between 12% and 22%, potentially worth billions of pounds in lost revenue.

Despite the high frequency of data breaches, legal departments are increasingly alive to the risk posed by data. More than eight in ten (85%) of legal departments around the world currently list managing data risk as an important priority and almost three quarters of departments consider information to present a high risk to their organisations.

CEB are calling for legal departments to take the lead in reducing information risk by providing clear guidance which requires management to incorporate the level of risk posed by data into its assessment of the data’s value. Companies capable of making decisions knowing the risks of data are likely to avoid significant losses associated with a growing volume of data.

Maarten Westermann, senior director, CEB said: “As companies collect more and more data about their customers, the reputational and financial risks they face grow rapidly. It’s certainly true that big data, used well, can bring huge rewards. But increasingly large fines and reputational damage must make the corporate world take equal notice of the risks.”