What type of impact is an organization experiencing when customers reduce their orders after a security incident?

When customers reduce their orders following a security incident, the organization is experiencing reputation damage. A security incident can lead to a breach of trust between the organization and its customers, as clients may feel that their personal information or the integrity of the products they receive is compromised. This decline in customer confidence can directly impact sales, as customers seek to mitigate their risks by opting out of future transactions with the affected company.

Through effective reputation management and resilience strategies, organizations often aim to rebuild trust after such incidents. However, the immediate effect tends to be a tangible decrease in business, as customers question the organization's commitment to security and reliability. This is distinct from other options, such as identity theft, which pertains more to individual data breaches affecting customers. Anonymization refers to processes used to protect sensitive data and does not directly relate to customer behavior post-incident, while interrupted supply chain focuses on the logistics and supply aspects, which may be a secondary effect but is not the primary concern in this context.