Free Newsletter
Register for our Free Newsletters
Newsletter
Zones
Access Control
LeftNav
Alarms
LeftNav
Biometrics
LeftNav
Detection
LeftNav
Deutsche Zone (German Zone)
LeftNav
Education, Training and Professional Services
LeftNav
Government Programmes
LeftNav
Guarding, Equipment and Enforcement
LeftNav
Industrial Computing Security
LeftNav
IT Security
LeftNav
Physical Security
LeftNav
Surveillance
LeftNav
View All
Other Carouselweb publications
Carousel Web
Defense File
New Materials
Pro Health Zone
Pro Manufacturing Zone
Pro Security Zone
Web Lec
 
ProSecurityZone Sponsor
 
ProSecurityZone Sponsor
 
ProSecurityZone Sponsor
 
ProSecurityZone Sponsor
 
ProSecurityZone Sponsor
 
ProSecurityZone Sponsor
 
 
News

Reputational damage risk with data loss

ArmstrongAdams : 30 July, 2009  (Technical Article)
HSBC financial penalty after data loss could lead to much larger problems with loss of customer loyalty according to survey
Last week, three HSBC firms were fined more than £3m by the Financial Services Authority (FSA) for failing to adequately protect customers' confidential details from being lost or stolen - but the potential longer term damage to customer loyalty could be equally painful according to recent research carried out by Ipsos MORI on behalf of information Risk Management specialist ArmstrongAdams.

For example, the survey found that 26pc of those described as "wealthy achievers" were "very likely" to switch, with 60pc of people with "moderate means" saying they would be "likely" to change banks as a result of personal customer detail loss.

According to ArmstrongAdams Director Tim Kipps: "The recent HSBC case shows that all organisations need to take data loss prevention very seriously. To HSBC's credit, the firm has acknowledged responsibility and has invested substantially in new procedures and staff training as a result. However, our survey clearly shows the continuing concerns that British consumers have with regard to the security of their personal information held by British banks. Banks and financial institutions of all sizes need to consider the survey's findings in the light of operational risk, financial risk, reputation risk, market risk and strategic risk. Information is the golden thread that binds together all these forms of risk. By definition, information Risk Management is a vital part of the constant effort needed to ensure that business and customer value is created rather than destroyed." 


As previously released results from the survey showed, 19% of bank account holders said they were "certain" to switch accounts.
Bookmark and Share
 
Home I Editor's Blog I News by Zone I News by Date I News by Category I Special Reports I Directory I Events I Advertise I Submit Your News I About Us I Guides
 
   © 2012 ProSecurityZone.com
Netgains Logo