No matter how prepared a company may be, or thinks it may be, a cyber-security breach can still occur. What the company does next can have a profound impact on its reputation, according to the book, "Cyber Liability and Insurance: Managing the Risks of Intangible Assets," available through the National Underwriter Company bookstore. 

"Companies trade on their names, and spend years branding and building reputations," the book states. "In the blink of an eye, all of that hard work can be unwound and the company's reputation left spinning out of control."

Aside from reputational risks, companies can run afoul of state laws and regulations if they fail to notify the appropriate parties in a timely fashion following a breach. Companies should therefore develop an effective communications strategy to minimize potential damage to a company's reputation, customer loyalty, employee morale, and, ultimately, shareholder value, the book recommends.