What is one implication of data theft in an organization?

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

One significant implication of data theft in an organization is the possibility of legal actions against the organization. When sensitive data such as personal information, financial data, or intellectual property is stolen, the organization may face legal consequences. This can include lawsuits from affected individuals or regulatory penalties imposed by government bodies for failing to protect that data adequately.

Furthermore, the organization may be required to notify affected parties, which can lead to additional legal liabilities and costs associated with managing the fallout from the data theft. This legal action could also extend to issues related to compliance with data protection regulations, such as the GDPR or HIPAA, which can result in substantial fines and sanctions against the organization.

In contrast, the other options, such as increased employee morale or greater management trust, are unlikely outcomes following a data breach. Instead, breached organizations often experience a decline in trust from both employees and customers, impacting overall morale and loyalty.

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