What is a possible long-term effect of a data breach on a company?

The long-term effect of a data breach on a company can include increased employee turnover rates. When a company experiences a data breach, it can significantly impact employee morale and trust within the organization. Employees may feel insecure about their personal information and the company’s ability to protect sensitive data. This feeling of insecurity can lead to dissatisfaction and a lack of confidence in the organization’s management, prompting employees to seek employment elsewhere.

Moreover, the negative publicity and stress associated with a data breach can create a challenging work environment, further contributing to higher turnover rates. The company may need to invest additional resources in hiring and training new staff, creating a cycle that can affect overall organizational stability and performance.

In contrast, while other options may seem appealing, they are unlikely to emerge as direct consequences of a data breach. For example, a breach typically would not result in greater partnerships or improved financial performance, as external entities may view the breach as a risk, ultimately affecting the company’s reputation and its ability to attract new business partners.