Jake Moore, cyber security specialist at ESET, says that instead of leaving investors and the public in the dark, it's time that companies showed more transparency about how they secure our data.
Data, according to some industry commentators, is now being viewed as the world’s most valuable commodity, so much so that its being called the ‘new oil’. It’s an accurate description as data is powering the technology economy in the same way that petroleum fuelled the growth of industrialised economies in the 20th century. Stretching the analogy a degree further, the damage caused by a data leak to an organisation’s reputation now is probably as calamitous as an oil spill was to the global oil companies then.
So what’s this got to do with European Cyber Security month I hear you say? Well, everything, if you are enrolled into a pension scheme as the steps taken by companies to protect data is now driving institutional investor sentiment. In short, companies whose policies and procedures fail to protect their data adequately, or who suffer a successful cyber-attack, can now expect not only to be pilloried by the media but punished by the investment community too. And if the company’s management has their wealth tied up in stock options then that punishment can seem a lot more painful than a dented corporate reputation.
Consider the recent Facebook/Cambridge Analytica saga. Admittedly no cyber attack took place but there was a lapse in data handling procedures and the company then paid a very heavy price; its share price dropped 19 per cent and more than $120 billion was wiped off the company’s market value...more via TEISS