After a Data Breach Stock Prices Fall 5 percent, Customer Turnover is 7 percent
Data security breaches can negatively impact an entire organization -- including sales, marketing and IT -- and have a significant negative impact on company finances and shareholder value, according to a new Ponemon study.
Specifically, the study, which was commissioned by Centrify, found that the stock value index of 113 companies declined an average of five percent the day the breach was disclosed. What’s more, 31 percent of consumers surveyed say they actually terminated their relationship with an organization that experienced a data breach. And while the study found a data breach has a significant impact on brand reputation, 66 percent of IT practitioners don’t believe their company’s brand is their responsibility.