Tuesday, April 30, 2024

“Our results show that firms experience statistically and economically significant negative abnormal returns in response to announcements of adverse cyber events. Furthermore, we observe a quicker price reaction in the later part of our sample period, suggesting that market participants have learned over time about the damage that such events can cause.”
– Anna Scherbina & Bernd Schlusche –

A recent American Enterprise Institute working paper examines the impact that the increasing volume of cyberattacks is having upon on publicly traded companies. Yet privately-owned middle market companies also face significant cyber risks – especially if they have government contracts, work on sensitive projects, or possess valuable intellectual property. These cyber incidents not only cause substantial direct financial losses, the affect also spills over to economically linked firms, magnifying the total economic impact. One takeaway: Investing in cybersecurity measures definitely mitigates losses in the event your firm is compromised. To learn more, Click here for the article The Effect of Malicious Cyber Activity on the US Corporate Sector.

Stay safe. Stay healthy. Be strong. Lead well.