What consequence might a business face after a data breach?

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 consequence a business could face after a data breach is the possibility of being involved in lawsuits from customers and employees. This occurrence stems from the fact that a data breach typically compromises personal and sensitive information. Affected individuals may seek legal recourse to recover damages, protect their rights, or hold the business accountable for negligence in safeguarding their data.

When a data breach occurs, it often leads to a loss of trust among customers and employees, making them more likely to pursue legal action if they believe the organization failed in its duty to protect their information adequately. Lawsuits may cover various aspects, including regulatory compliance failures and damages for emotional distress or financial losses suffered due to the breach.

The other options do not reflect typical outcomes of a data breach. Higher customer ratings are unlikely as trust is diminished, gaining new partnerships can be difficult due to reputational damage, and an increase in data accuracy is counterintuitive since a breach often indicates flaws in data management or security practices.

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