Companies need to disclose their cybersecurity risk to attract investors, study finds

Companies need to disclose their cybersecurity risk to attract investors, study finds Enterprise CIO is a practical resource for CIOs; business app developers; CTOs; business IT and mobilisation professionals, delivering the most insightful, informative and up to the minute news content from around the web.


When one company experiences a cybersecurity breach, other companies in the same field become less attractive to investors. Yet new research argues that if organisations are open about their efforts, then a brighter picture emerges.

The research, from the North Carolina State University and involving 120 non-professional investors, found organisations that are open about their cybersecurity risk management do well than their peers that never disclose their cybersecurity efforts.

As part of this study, the participants were given information about a fictional company’s cybersecurity risk management programme and then were asked to give their initial assessment of the attractiveness of investing in that company, along with the likelihood of purchasing a stock in that company. It was found that companies who revealed their cybersecurity risk management programme both before and after a competitor’s breach performed the best.

Robin Pennington, co-author of the study, said: “While the company suffers some decline in attractiveness after the breach, on average it suffers the least if it discloses its cybersecurity risk management program, in a way that is similar to the AICPA’s voluntary reporting guidelines.”

Last month, a B2M Solutions survey found 51% of workers polled reported experiencing at least one issue with their mobile devices per month that hindered their ability to do their job. The research found a marked rise in workers who had taken days off because of mobility issues and 37% admitted they had taken at least one day off in the past 12 months because of stress at not being able to do their job relating to a mobile snafu.

Interested in hearing industry leaders discuss subjects like this and sharing their use-cases? Attend the co-located IoT Tech Expo, Blockchain Expo, AI & Big Data ExpoCyber Security & Cloud Expo and 5G Expo World Series with upcoming events in Silicon Valley, London and Amsterdam and explore the future of enterprise technology.

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