Corporate Board Member| December 6, 2019
Cyber risk is a board-level issue because a breach can crush a company’s stock price, tarnish its reputation and scare off customers and partners. A study by the Ponemon Institute revealed that a company’s stock price drops an average of 5 percent immediately after a breach is exposed. The study further found that companies lose an average of $3.92 million in revenue and a significant portion of their customers after a breach.
It’s no longer a question of whether a company will experience an attack, but when. Security is about hunkering down, while resilience means being able to operate after a breach. Here’s what directors need to know.