In an article on Todays Facilities’ Manager website reports that it takes over three years for a firm to recover from a crisis like a data breach hat damages its reputation, according to the market research firm Burson–Marsteller. The firm points out that quickly disclosing the details of a scandal or corporate misstep and making visible progress toward recovery should be the first steps any organization takes to rebuild its reputation.
Not only will it take over three years to recover a corporate reputation, but Forrester is reporting it can take a lot of money. In an April 11, 2007 article at Information Week, Forrester analysts report that the average data breach can cost a company between $90 and $305 per lost record.
Information that firms like TJX Companies and Menu Foods seem to have missed.
(updated 06-17-07)