What impact can a data breach have on an organization?

A data breach can significantly affect an organization, leading to potential financial loss and reputational damage, which is why this choice is the correct answer. When sensitive information is compromised, organizations often face immediate financial consequences, such as regulatory fines, legal fees, and the costs associated with addressing the breach, including forensic investigations and system repairs.

Moreover, a breach can cause long-term reputational damage, as customers and stakeholders may lose trust in the organization's ability to protect their data. This erosion of trust can lead to decreased customer loyalty, diminished market share, and negative publicity that can be difficult to recover from. Rebuilding reputation and regaining customer confidence often requires time and significant investment, adding to the overall impact of the breach.

The other options suggest outcomes that are typically the opposite of what a data breach leads to. Increased customer trust and improved data management protocols do not reflect the typical fallout of a breach; instead, organizations usually find themselves needing to work hard to restore trust and enhance their data security measures post-incident. Similarly, claiming insignificant financial impact undermines the reality that many organizations experience substantial economic repercussions following a data breach.