The leading IT consultants, CGI and Oxford Economics, have come up with a combined research report that cyber security breaches are causing corporates to lose out in billions of dollars due to consequences of legal or regulatory nature, caused by them.
The report analysed a large number of security breach incidents in the corporate sector and observed that such incidents severely hurt the brand values of companies and erode their stock prices in the market, even permanently.
The statistics analysed across 65 such companies revealed that their share prices had fallen even up to 1.8% on a permanent basis, in 2013. Overall, the CTS (Cost-To-Shareholder) due to such debacle of these entities amounted to a whopping 42 billion in Pound Sterling terms (US$52.40 billion) !
The study, compared the share prices of a group of companies similar in nature and operations to each of the sample of the above-mentioned 65 corporations, Thus, it isolated the impact of the impact of cyber breaches from other market movements, during incidents . The details of this comparative breach index were done by a Dutch cyber security enterprise, Gemalto.
Two-thirds of the firms surveyed were seen to have been severe casualties in the stock markets after suffering the consequences of the cyber security breach. Worse affected were the financial institutions followed by companies from the communications industry.