Dealing with data breaches is normal for big brands in the retail realm. You only need to scan the headlines to see the latest examples of how large omnichannel retailers and other organizations have had their confidential customer data stolen or compromised by hackers.
These breaches can have a profound impact on shareholder value, as shown by a recent study from by cybersecurity consultant CGI and Oxford Economics that found global investors have lost nearly $52.4 billion due to cyber attacks in recent years. that same study revealed that there is “a significant connection between a severe cyber breach and a company’s share price performance.”
Being hacked typically leads to an average share price decline of 1.8 percent on a permanent basis, and the drop can be much steeper depending on the circumstances. For example, Target’s profit dropped 46 percent resulting in earnings of 81 cents per share as a result of its major breach in 2013. Though company share price tends to recover after a hack, it also tends to rise much slowly thereafter – in general, companies that have been hacked underperform by (Read more...)
*** This is a Security Bloggers Network syndicated blog from Blog – Protegrity authored by Michael Maloney. Read the original post at: https://www.protegrity.com/whats-your-brand-promise-customer-data-cybersecurity-compliance-and-trust/