Cyber Security: Everything an Executive Needs to Know by Ferraro Phillip

Author:Ferraro, Phillip [Ferraro, Phillip]
Language: eng
Format: azw3
Publisher: Hasmark Publishing
Published: 2016-04-03T16:00:00+00:00

· Finally, and most troubling, 34% of those surveyed report that they no longer shop at a specific retailer due to a past data breach issue.

There is a bit of good news, though. Stock prices following a breach will only drop on average about 10–15% for a large enterprise, and could rebound in as little as 2–3 quarters. For smaller businesses, it could take a year or longer for the stock value to fully rebound. If you are a large enterprise and can weather the storm of stock devaluation and loss of one third of your customer base, then you will be fine … at least from a stock valuation perspective.

However, as shareholders you might want to look beyond only the short-term impact to your stock valuation and consider other factors that can significantly impact the organization’s profitability, such as cash flow, legal fees, class action lawsuits, regulatory fines, and executive dismissals as we have described earlier in this chapter. If you are a small to medium size business, all of these factors can be egregious enough to force the company into bankruptcy. The losses can come from every direction.

After reviewing this chapter, you should have a much better understanding of the impact of a breach on an organization. It is not a one size fits all set of circumstances, and any one ancillary effect of a breach could lead to total loss. There should be no doubt in your minds that together we must get started right away on building a comprehensive cyber security program.

In the next chapter we will discuss how to build a rock-solid program.

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