Breaches Don’t Correlate To Real Results

Joshua Danielson writes:

According to Wired, a recent breach at a marketing and data aggregation firm you’ve probably never heard of potentially exposed the personal information of practically every American adult alive today. Such a story has to leave some wondering what the long-term impact is for organizations. I decided to try to find out. A further analysis shows that data breaches have no impact on the long-term stock price of publicly traded organizations.

With the steadily increasing number of security breaches in past years, one would assume the long-term effects would be obvious. And while there has been an exodus of senior leadership, you’d be wrong if you thought the stock prices of these companies sank faster than the Titanic.

As a security professional, it pains me that the data shows breaches have little to no impact on a public company’s long-term performance, using stock price as the leading indicator. 

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