What are some common consequences of a data breach?

The selected choice correctly identifies common consequences of a data breach that organizations typically face. Financial loss is a significant outcome as breaches often result in direct costs, such as forensic investigations, legal fees, and potential settlements or fines. Reputational damage follows closely behind, as trust is eroded when customers learn that their personal data has been compromised, leading to a negative impact on brand image. Employee turnover can also occur, as dissatisfied employees may feel insecure about their organization’s ability to protect sensitive information, prompting them to seek employment elsewhere.

Other options presented do not align with the typical consequences of a data breach. Regulatory penalties might be a consequence, but increased sales and enhanced market position are not reflective of the fallout from a breach; typically, organizations experience the opposite effect when trust is diminished. Moreover, benefits like increased network speed and higher customer loyalty are unlikely results of a data breach, as organizations instead often face challenges that can threaten their operational integrity and customer relationships.