Tuesday, September 7, 2021

Does a Data Breach Damage Your Company’s Financing Prospects?

Does a Data Breach Damage Your Company’s Financing Prospects? 

The last thing that you want to discover when your company is in a bind is that a data breach that you had two years ago is impacting your ability to secure new financing at a rate that you can afford, but that’s exactly what has happened to many companies in the last few years.

In a recent study by the American Accounting Association, “Do Banks Price Firms’ Data Breaches?” it’s easy to see that a data breach can be a huge blot on a company’s financing prospects from banks and other lenders. Companies that experience a breach pay higher interest rates, face a 22% higher loan spread and a 40-basis-point increase as well as negative impacts on their collateral requirements and loan covenants.

The best way to stay out of that group is to take every possible security measure that you can to keep your systems and data safe. The most effective one for you to adopt immediately is secure identity and access management using a smart, affordable solution like Passly. Just by adding Multifactor Authentication (MFA), you’ll stay safe from 99.9% of password-based cybercrime. Plus, Passly gives you so many additional security boosters it’s like getting three solutions for the price of one.

Waiting until you’ve had a security disaster isn’t a good way to save money. Make a small investment in secure identity and access management now to ensure that you’re taking sensible precautions to protect your organization’s financial future.

Bit by bit helps client networks run smooth and secure.. visit our website at www.bitxbit.com/texas 877.860.5831

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