When you’re a public company, every step taken by your organization has the potential to impact your stock price–whether it be revenue generated, employees hired or fired, or performance of your competitor. If your company is facing a data exposure, it will certainly be reflected in stock performance.
Take Facebook, for example. Since debuting one of the defining products of our generation, Facebook has found new and innovative ways to enhance the social media experience. When the company went public in 2012 they were among the most recognizable brands in the world and grew steadily in consumer and stockholder confidence. In March of 2018, Facebook’s stock was trading at an average value of $185, until news the their data had been shared with Cambridge Analytica which resulted in a drop of their stock value by over 7% in a matter of hours–equating to an estimated $43 billion loss.
A company’s stock value is a direct reflection of consumer confidence in that brand. Stock performance is public, and hard to hide from. Not to mention, there are boards of directors and government agencies to answer to. And while most public companies don’t have $43 billion to lose, most companies also do not have the reputation to survive a public stock plummeting.
This is the conclusion of the Breach 101 Blog Series: “The Cost of Non-Compliance”. The other posts explore:
Don’t wait for a notification to learn that your data has been compromised. Stay vigilant by utilizing a personal identity security service and regularly monitoring your accounts. If something seems suspicious, take the steps necessary to protect yourself, but also notify the company in question.
There are ways to prevent a plummeting stock value from data exposure. By being proactive in protecting your company’s data, you can minimize the damage to your stock and, ultimately, your bottom line. By selecting strategic security partners, you can demonstrate to your stockholders that you take your customer’s privacy seriously.