"Study Finds Companies May Be Wise to Share Cybersecurity Efforts"

A study conducted by researchers at North Carolina State University found that companies are considered less attractive when they share a field with a company that has a faced a cybersecurity breach. Companies that are more transparent about how they manage cybersecurity risks perform better than those that do not disclose information about their cybersecurity practices. Studies on the contagion effect in the realm of cybersecurity breaches have found that organizations can take steps to reduce its impact. The researchers also studied the impact of another effect known as the competition effect in which investors consider a cybersecurity breach faced by one company as an advantage for the competitors of that company, thus making the competitors increasingly appealing to investors. This article continues to discuss key findings from studies on the contagion effect and the competition effect in regard to cybersecurity breaches experienced by companies, in addition to the importance of disclosing cybersecurity risk management efforts.

TechXplore reports "Study Finds Companies May Be Wise to Share Cybersecurity Efforts"