Recent research shows that the consequence of cyber security is how data loss affects share value and customer loyalty. When data breaches occurred, the average value of companies’ shares declined by 5%.
In a study conducted by the Ponemon Institute, the effect of cyber security vulnerabilities on a company’s reputation and share value was explored. Towards the aims of the report, researchers analyzed 113 publicly traded companies that were experiencing data breaches such as theft of customer or consumer data by hackers. Following the analysis of the stocks, it became clear that the stock value decreased by an average of 5% after the cyber attack. On the other hand, companies reporting superior security stances and responding quickly to the attack, recover their share value after an average of 7 days.It has been seen that companies with poor security stances against data breaches are more likely to lose customers, while a strong security stance supports customer loyalty and trust.
31% of marketing professions participating in the survey and 43% of IT practitioners said that their company experienced a breach of data that resulted in the loss of more than 1000 sensitive or confidential customer and company records in the past 2 years.61% of IT practitioners do not believe that their companies have a high level of skill in preventing cyber attacks. However, 63% of marketing professionals are confident that their companies will endure a data breach that results in the loss or theft of high value assets.
62% of consumers reported that their personal information was lost or stolen as a result of one or more data breaches by a company or government agency within two years of passing.