What can a data breach result in for a company?

Study for the CIW Data Analyst Test. Prepare with flashcards and multiple choice questions, each with hints and explanations. Get ready for your exam!

A data breach can significantly impact a company's reputation and the trust that customers place in it. When sensitive information, such as personal data or financial details, is compromised, it can lead to public scrutiny and skepticism regarding the company’s ability to protect its customers' data. This loss of trust can deter current and potential customers, ultimately affecting sales and long-term relationships with clients.

Moreover, the fallout from a data breach often requires a company to invest in damage control strategies, such as public relations campaigns, enhanced security measures, and compensation for affected customers. These actions can divert resources and attention from core business operations, showing how a data breach not only harms immediate customer relations but also destabilizes the company's standing in the market.

In contrast, the other responses suggest outcomes that are unlikely to result from a data breach. Most businesses tend to face challenges rather than opportunities following such an incident, making the correct answer a clear choice.

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