Under which condition would a company be required to report a data breach?

A company is required to report a data breach primarily when there is a potential risk to the identities of affected individuals. This requirement is grounded in the need to safeguard personal information and mitigate any harm that could arise from identity theft, such as financial losses or privacy violations. When individuals’ identities are at risk, transparency is critical to allow those affected to take necessary precautions, such as monitoring their financial accounts or utilizing credit protection services.

The significance of reporting lies in the proactive approach to risk management; it emphasizes the company’s accountability toward its customers and compliance with legal and regulatory frameworks, which often mandate notification in cases where sensitive data may be exposed or compromised.

In contrast, the other scenarios mentioned do not typically trigger mandatory reporting obligations. For instance, a breach involving fewer than 50 records may not meet the threshold required for regulatory notification, and internal data leaks that do not involve personally identifiable information may also fall outside of required reporting, as the risk to individual identities isn't present. Reporting timeframes, such as whether a breach occurred during business hours or not, generally do not influence the obligation to report a breach, as the focus is primarily on the data compromised and the risk posed to individuals.