Over 60% of the Fortune 1000 had at least one public data breach over the last decade, according to a Cyentia Institute research report. On an annual basis, it is estimated that one in four Fortune 1000 firms will suffer a cyber loss event. There is an estimated cyber attack every 39 seconds. As is often stated, “it is not a matter of if, but when you will suffer a cyber attack.” Are you prepared?
A Cyberattack Doesn’t Have to Sink Your Stock Price
Getting hacked is more a question of when than if. But while hacks can be a PR nightmare — and one that rapidly erodes consumer confidence and sinks stock price — they don’t have to be: Cyberattacks are also an opportunity for companies to show transparency, trustworthiness, and to highlight the steps they’ve taken to defend against attacks and the ones they’re investing in. A review of how companies responded to cyberattacks, and how their stock prices fared, produced two recommendations: 1) Lead with what you did right to prepare for this eventuality, and 2) then pivot to how you’re going to improve even more. The best case outcome is to reduce, or even eliminate, the cyber-incident’s short-term negative impact, such as on stock price, through a systematic response strategy and proactive customer attitude, and turning the experience into a trigger for expanded organizational learning to create positive long-term impact and digital innovation.