In the digital age, cyber threats represent an increasing risk for companies.

A single attack can have consequences beyond financial loss and reputational damage. Sometimes, it can lead a company to close down its operations for good. In this article, we will examine the hidden cost of cyberattacks, and how they can pose an existential threat to organizations.

Examples of the impact of cyberattacks on companies

The cyberattack on Sony Pictures had a devastating effect on its reputation. The leakage of confidential information led to the loss of confidence of its customers and the questioning of its business partners. This illustrative example shows how an attack can have immediate repercussions on a company’s public image. In addition to their impact on reputation, cyberattacks also represent a challenge at the organizational level.

A prominent case in point is the ransomware attack on Colonial Pipeline in 2021, which not only crippled the operations of the main pipeline network in the United States but also caused a severe fuel supply crisis nationwide. These examples clearly show how a cyberattack can have consequences that go beyond the technical, even affecting a country’s economy and welfare.

A striking case study in this area is the one that occurred in 2021 to the Swedish supermarket chain Coop. This ransomware attack, carried out through IT services software used by various companies, resulted in Coop having to close around 800 stores. The company required more than 300 people and took more than a week to reinstall its entire infrastructure and return to limited operation. This example shows how interconnected and dependent companies are on their supply chains, and how one vulnerable point can generate a domino effect.

Human consequences of cyberattacks and the importance of preventing them

The human consequences of cyberattacks should not be ignored. These incidents can not only result in job losses but also affect employee morale and generate a climate of distrust while trying to restore normal operations. Unfortunately, there are cases where the impact of a single attack has even led to the closure of a company. Such is the case of Code Spaces, a technology company specializing in source code management. In 2014, a cyberattack compromised their data, backups, and configurations, making them impossible to recover from. In less than 24 hours, Code Spaces was forced to close its doors. This demonstrates the crucial importance of both preventing these incidents and reacting quickly to them.

Recognizing and understanding the hidden impact of cyberattacks is vital for businesses. Data protection, early threat detection, and the implementation of preventive and reactive measures are essential to minimize risks and ensure the operational continuity of organizations in the digital era. A cyberattack can jeopardize the survival of even the most robust companies, so weighing these risks and adopting effective cybersecurity strategies should be part of any company’s agenda, as well as the professional development of those interested in the field of organizations.

Continue your professional training

In a world where companies constantly face the threat of cyberattacks, it is imperative that organizations have strong leaders and strategic planning skills to meet these challenges. The program of Master in Strategic Management with a Specialty in Management offered by the Universidad Internacional Iberoamericana (International Iberoamerican University, UNIB) is specifically designed to provide students with the knowledge and tools necessary to efficiently manage and lead in today’s changing business landscape.

Enroll in the master’s program today and prepare to become a strategic leader capable of meeting the complex challenges posed by cyber threats. Your future in business management and protection starts here.

Don’t miss the opportunity to be part of the future of business and security. Take the first step towards a rewarding and impactful career today!

Source: The hidden cost of cyberattacks: when technology threatens business existence