Surviving the Storm: How Companies Bounce Back from Cybersecurity Breaches | by Kory Becker | Apr, 2024
BUSINESS INTELLIGENCE
The journey of Equifax from asset impairment to financial recovery.
Cybersecurity breaches are becoming a common occurrence and serious threat to stability and valuation in the technology industry.
At a time where data leaks and hacking attempts occur on a near daily basis, how can a company protect their assets?
More importantly, how can a company successfully rebound after a breach occurs?
Occurrences of cybersecurity breaches have been increasing at a steady rate over recent years. These can lead to significant costs that have both direct and indirect impact to a company’s assets.
The repercussions following the wake of a breach can range from financial impact to a company’s stock value all the way through to consumer outlook.
Direct costs
- Legal fees
- Incident response
- Infrastructure repair
- Data recovery
Indirect costs
- Damage to reputation
- Negative sentiment
- Loss of customer trust
Given the serious nature of cybersecurity threats to a business, it’s important to understand the impairment impact of security breaches on a corporation, specifically regarding their assets.
A company’s assets often form a core part of their valuation and net worth.
When a cybersecurity breach occurs, the assets of a company may face a direct financial impact. It’s important to understanding and test whether a company’s assets exceed their recoverable amount.
If a company is damaged significantly enough through a cybersecurity attack, it could potentially lead to…
