What are potential consequences for businesses suffering a data breach?

The consequences for businesses suffering a data breach can be significant and multifaceted. The correct choice highlights that a data breach not only leads to financial losses but also incurs legal liabilities and damages the company's reputation.

Financial losses can stem from a variety of sources, including immediate costs related to the breach, such as investigation, remediation, and customer notification. Additionally, businesses may face penalties from regulatory bodies depending on the nature and severity of the breach.

Legal liabilities arise from the potential lawsuits that can be filed by affected individuals or organizations, as victims may seek damages for unauthorized access to their personal information. This can lead to settlements or judgments that further strain a business's finances.

The damage to a company's reputation can have lasting effects. Once trust is broken, customers may choose to take their business elsewhere. Recovery from reputational damage can take considerable time and effort, often requiring extensive marketing and communication strategies to rebuild customer trust.

Overall, this correct option reflects the comprehensive risks that businesses face when experiencing a data breach, illustrating the gravity of the issue in terms of finances, legal standing, and public perception.