"Study Confirms That Trust Following a Security Breach Is Best Retained When Organizations Are Up Front"
According to new research from Durham University Business School, organizations that suffer security breaches in which customer information is compromised are far more likely to retain consumer trust if they are quick to communicate the incident and are proactive in developing a solution. The study aimed to gain more insight into the actions typically taken by organizations in the event of a security breach, as well as the following consumer reactions. The researchers hoped that by doing so, they would be able to guide organizations in selecting response strategies that would allow them to maintain consumers' trust and their market standing. They conducted experiments and developed a conceptual model reflecting the most common types of security breaches within eCommerce, as well as the typical response strategies of affected organizations, to capture accurate consumer appraisals on how previous security breach incidents were handled. Their investigation revealed that the key factors for retaining consumer trust after a security breach are the perceived risk, the severity of the breach, and the affected organization's response efficacy. Findings showed that consumers' reactions varied depending on the type of data that was put at risk. For example, financial and privacy risks were discovered to be the most significant factors in determining consumers' intentions to return to a breached organization. The affected organizations' chosen response strategy proved to be the most important factor in retaining consumer trust. While it could be assumed that announcing a security breach would alarm consumers, the researchers discovered that by taking a more proactive approach, organizations could reduce consumer concerns while also positively boosting their reputation. This article continues to discuss the "Security Breaches and Organization Response Strategy: Exploring Consumers' Threat and Coping Appraisals" study.