What is a common consequence of data breaches?

A common consequence of data breaches includes a range of significant negative impacts such as financial loss, reputational damage, and legal penalties. When an organization suffers a data breach, it may face direct financial consequences due to the costs associated with remediation efforts, investigations, and potential compensation for affected individuals. Additionally, the breach often damages the organization's reputation, leading to loss of customer trust and potentially a decrease in business as customers seek more secure alternatives.

Legal penalties can also arise from breaches, especially if the organization fails to comply with data protection regulations such as GDPR or HIPAA. Organizations may face fines, lawsuits from affected parties, and other legal actions as a result of not adequately protecting sensitive data. This multifaceted impact highlighted in the correct answer illustrates the serious nature of data breaches and the extensive ramifications they can have on a business.