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Effects of Network Security Breach on Business Continuity

Effects of Network Security Breach on Business Continuity

One of the companies that has experienced a series of data breaches is Facebook. The data breach incident occurred in 2018 when it was discovered that Cambridge Analytica had contracted a Facebook app developer to acquire personal data belonging to over 80 million Facebook users (Cadwalladr & Graham-Harrison, 2018, p. 12). This data was used in targeting voters during the presidential election in the US in 2016 in favour of Donald Trump, the Republican candidate. Trump ended up clinging to the seat despite the information being acquired without the users’ permission. Later in 2021, Facebook agreed to pay $725 million to settle the damages it had caused to its users (Cadwalladr & Graham-Harrison, 2018, p. 17).

While a network security breach has many effects on business continuity, only two of these effects will be discussed. One of the effects of this network security breach on Facebook is a loss in revenue. Notably, nearly 30% of companies that experience a data breach lose revenue (Von Solms & Van Niekerk, 2013, p. 98). Of these companies that lost income, 39% experienced a loss of 20% or more (Von Solms & Van Niekerk, 2013, p. 98). Facebook had to part with $725 million for the damages it had caused its customers. This has become one of the largest ever settlements in US data privacy class action.

Another effect of this network security breach on Facebook is damaging the company’s brand reputation. Despite the loss in short-term revenue, Facebook also experienced a long-term loss in its brand reputation. A significant portion of customers value their privacy, and some considered ditching the company due to engaging in customer payment information. The damage caused to the reputation of Facebook has resulted in firms such as Mozilla, Tesla, and Space X stopping posting vital information on their Facebook page (Von Solms & Van Niekerk, 2013, p. 101). While this may be viewed as a minor incident concerning Facebook’s economic activities, it is also experiencing a ‘Delete Facebook’ movement on Twitter. Disgruntled users are persuading others to consider deleting their Facebook accounts, asserting that the company has become too intrusive. Recently, WhatsApp co-founder Brian Acton also suggested that all users consider deleting their Facebook accounts.


Cadwalladr, C., & Graham-Harrison, E. (2018). In a major data breach, 50 million Facebook profiles were harvested for Cambridge Analytica. The guardian17(1), 22.

Von Solms, R., & Van Niekerk, J. (2013). From information security to cyber security. Computers & Security38, 97-102.


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Business continuity is crucial for the functioning of an organization. Ensuring sound network security is in place is a vital step. With respect to business continuity, respond to the following in a minimum of 200 words:

Effects of Network Security Breach on Business Continuity

Effects of Network Security Breach on Business Continuity

Using a specific example, discuss 2 effects of a network security breach on business continuity.

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