Which of the following represents a potential economic harm related to privacy risks?

Prepare for the IAPP AI Governance Test with our study tools, including flashcards and multiple-choice questions. Each question comes with helpful hints and explanations to boost your readiness.

Financial losses from data exposure directly illustrate a potential economic harm related to privacy risks. When sensitive data is compromised, it can lead to a range of financial repercussions for organizations and individuals alike. For organizations, data breaches can result in significant costs, including legal fees, regulatory fines, and expenses related to remediating the breach, such as improving cybersecurity measures or customer notifications.

Additionally, exposed data can lead to identity theft or fraud, which can impose financial burdens not only on the entity whose data was compromised but also on affected individuals. The aftermath of such incidents often encompasses lost revenue due to decreased consumer trust and loyalty, as customers may be less willing to engage with businesses perceived as insecure. Thus, financial losses from data exposure distinctly highlight the tangible economic risks associated with privacy breaches.

Subscribe

Get the latest from Examzify

You can unsubscribe at any time. Read our privacy policy