Can a cyber incident be good for business reputation?

Most boards assume a cyber incident will damage their reputation beyond repair. The bigger risk is mishandling the response. Companies that communicate clearly, act decisively, and show empathy often recover faster and sometimes emerge with stronger stakeholder trust than before.

A controversial question, perhaps. Ask most business leaders whether a cyber incident could ever be “good” for their company’s reputation, and the answer will likely be a firm “no.” For those who have lived through the fallout, the disruption, the sleepless nights, the loss of confidence and the very idea might seem absurd. But look a little closer, and there’s a more nuanced story to tell.

Perception vs Reality

Managing reputational harm during and after a cyber incident is complex and requires strong leadership. Over the years, we’ve seen several examples where organisations have been criticised for poor handling particularly in how they communicate with customers, shareholders, regulators, and the media.

Yet despite the headlines, most of those businesses are still trading. They suffered short-term hits to share prices, to confidence, to customer loyalty but recovered over time. In fact, many have used the experience to str][engthen their defences, improve their transparency, and rebuild trust more effectively than before.

Willis’s recently published Cyber in Focus 2025 report reinforces this. More than half of cyber incidents now originate with third-party vendors, and the average outage lasts around 24 days. The data shows that while disruption is inevitable, long-term reputational damage isn’t provided the response is well managed.

The real threat to reputation often comes not from the incident itself, but from how it’s handled. Silence, denial, or confusion can erode confidence faster than the breach ever could. In contrast, organisations that communicate promptly and clearly tend to recover faster and more credibly.

When "Good Enough" might be enough

For many leaders, a cyber incident serves as a wake-up call, a sharp reminder that cyber security isn’t just a technical issue, but a business-critical one.

Cyber security investment can be expensive, and the return on investment is often difficult to measure. For companies already under cost pressure, justifying major cyber spend can be a challenge. That’s why context and proportionality matter.

Not every organisation needs "gold standard" cyber security. In truth, a well-structured and "good enough" security strategy tailored to your actual risk profile can protect against most common threats. Because if a motivated, highly capable actor decides to target your business specifically, even the best defences might not prevent an incident altogether.

That’s why so many in the industry accept the idea that it’s not if, but when. The more important question is: how will you respond?

What good looks like in a crisis

Preparation and practice are everything. When an incident hits, there is typically no time to improvise. Crisis simulations and communication workshops give leadership teams a safe environment to test their response; identifying what works, where gaps exist, and how to communicate under pressure.

When developing your response and communications strategy, three principles are key:

Turning a crisis into a reputation test

Handled well, a cyber incident can be an opportunity to demonstrate resilience and transparency. It’s not about spinning a negative event into a PR win, but about proving your organisation can respond with integrity when it matters most.

In the short term, your focus will rightly be on recovery - restoring systems, protecting data, and maintaining business continuity. But in the medium to long term, consider how you communicate those efforts. Post-incident updates, public statements, and even case-study-style reflections can highlight your company’s commitment to improvement.

For example, many organisations choose to publicise follow-up investments in cybersecurity, new risk governance frameworks, or stronger third-party controls. These communications show learning, accountability, and progress; all qualities that enhance credibility with customers, investors, and regulators.

Handled thoughtfully, the recovery phase can mark a turning point in how your business is perceived. It demonstrates that you take responsibility seriously, and that you are willing to be transparent in how you manage risk.

The leadership imperative

For business leaders, the takeaway is clear: you cannot control whether a cyber incident occurs, but you can control how your organisation responds.

Preparation is not just about technology; it’s about culture, communication, and clarity of roles. Senior leaders should rehearse not just the technical response, but the public one understanding how decisions, tone, and timing influence trust.

A strong incident response plan should integrate both operational and reputational recovery. It should outline who communicates with whom, what information is shared at each stage, and how messaging will evolve as the situation develops.

This planning is what separates companies that stumble through a crisis from those that steer confidently through it.

The opportunity

Handled correctly, a cyber incident can reveal strength rather than weakness. It shows stakeholders that your business can face adversity, adapt, and emerge stronger.

Your stakeholders, employees, customers, shareholders, and regulators expect transparency and accountability. They don’t expect perfection. What matters is that your organisation responds quickly, communicates clearly, and demonstrates commitment to learning from the event.

That’s why preparation isn’t optional. Rehearse your communications under real-world pressure. Test your processes, challenge assumptions, and make sure your leaders are ready to act decisively when it counts.