What are the real world risks of a cyber security breach to CEOs and their company? We will explore the issues of reputational damage, incident cost, stock price impact, and increased regulatory attention. We will also discuss the fate of four CEOs who have faced cybersecurity breaches in the past three years.<\/p>\n
According to Warren Buffet, “It takes 20 years to build a reputation and five minutes to ruin it. If you think about that, you’ll do things differently.” The \u201c2015 Cost of Data Breach Study: Global Analysis<\/a>\u201d from the Ponemon Institute shows that companies suffer a higher churn rate, increased customer acquisition costs, reputation losses and diminished goodwill due to an information security breach.<\/p>\n The 2015 Information Security Breaches Survey, conducted by PwC states. \u201cWhen asked what made a particular incident \u2018the worst\u2019, 16 out of the 39 organisations who responded cited that it was the damage to their reputation which had the greatest impact. This is an increasing trend, up from 30 percent of respondents in 2014 to 41 percent this year.\u201d<\/p>\n Lastly, from the Global Risk Management Survey 2015, quoting Greg Case, CEO of Aon, \u201cFor the first time since 2007, damage to brand and reputation has emerged as the top-ranked risk in our survey. Interestingly, cyber risk has entered the top 10 for the first time this year. The connection between these two risks has been felt around the world in 2014, as a rash of data breaches demonstrated the fragile nature of consumer trust in leading corporations.\u201d<\/p>\n