Investors wary of businesses with cyberattack history, study finds

There is little doubt that becoming the victim of a data breach or cyber security incident due to poor vulnerability management can be hugely damaging to the ongoing growth and success of an organisation.

After all, failing to adequately mitigate cyber security risks can lead not only to financial and legal ramifications, but also to irreparable damage to the organisation's public reputation.

However a recent survey prepared by Zogby Analytic for HBGary has revealed that there may be yet another ramification associated with becoming the victim of a cybersecurity incident.

According to the study, almost 80 per cent of US-based investors say that they would likely not consider investing with a company that has a history of cybersecurity incidents.

That is notable as more than 66 per cent of the 405 investors surveyed in preparing the report said that they often research each company's cyber security incident history in advance of an investment.

The biggest issue reported by potential investors was whether or not the organisation in question has reported a breach of customer data in the past – 57 per cent of respondents said they would be concerned if this was the case.

This study highlights the value of security audit evaluations, by once again emphasising the far reaching ramifications of a cybersecurity incident.

Any organisation looking to protect its reputation and build a strong public profile needs to ensure that it is doing its absolute most to mitigate cyber security risks and protect consumer data in advance of an incident occurring.

Senior vice president of cyber strategy for ManTech’s Mission Cyber & Intelligence Solutions Group Ken Silva says that the study proves that the high cost of cyberattacks simply cannot be understated.

"For some time, we have said that cybersecurity cannot be a "checkbox" item on a company’s operational to do list," said Mr Silva in a statement released February 25.

"This survey proves that today’s investors are more educated about the damage cyberattacks can cause to a company’s brand and financial bottom line."

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