Breaches Can Crater Companies' Stock by 5%New Ponemon study shows how breaches can bring a company's stock price down by an average of 5% on the day of the incident.
Public companies that suffer a breach get hit with a double whammy of not only dealing with the attack but also face the prospect of their stock price falling an average of 5% on the day of the breach, according to a survey by the Ponemon Institute and commissioned by Centrify.
The study looked at a survey of 1,331 security and IT employees, senior level marketers and corporate communications professionals and consumers. Some 31% of customers affected by a publlic firm's breach dropped their relationship with the company post-breach, resulting in a 7% customer churn rate.
Meanwhile, companies with an inadequate security posture encountered as much as a 7% stock drop on the day of the breach, and 120 days after the attack the stock did not regain its previous level before the breach.
Companies with a high security posture only encountered up to a 3% stock drop and were able to regain and move to higher levels 120 days after the attack.
Only 20% of CMOs and 5% of IT professionals indicate they would be concerned about the impact of a breach on the company's stock price.
Read more about the survey here.
Dark Reading's Quick Hits delivers a brief synopsis and summary of the significance of breaking news events. For more information from the original source of the news item, please follow the link provided in this article. View Full Bio