Impact of Cyber Incidents on Business Reputation

SEC Cybersecurity 8-K Alert As the former Senior Cybersecurity Advisor to the U.S. Securities and Exchange Commission Chair it appears the 8-Ks issued so far are non compliant. What’s missing is how these cyber events have or will introduce material business, operational and financial harm. I suspect most companies have not figured this out. This is reflective of a disconnect amongst the technology, cybersecurity, business and enterprise risk management functions….. including the Boardroom!!!! Below is a list of business focused risk factors: • Costs due to business interruption, decreases in production and delays in product launches. • Payments to meet ransom and other extortion demands. • Remediation costs, such as liability for stolen assets or information, repairs of system damage and incentives to customers or business partners in an effort to maintain relationships after an attack. • Increased cybersecurity protection costs, which may include increased insurance premiums and the costs of making organizational changes, deploying additional personnel and protection technologies, training employees and engaging third-party experts and consultants. • Lost revenues resulting from intellectual property theft and the unauthorized use of proprietary information or the failure to retain or attract customers following an attack. • Litigation and legal risks, including regulatory actions by state and federal governmental authorities and non-U.S. authorities. • Harm to employees and customers, violation of privacy laws and reputational damage that adversely affects customer or investor confidence. • Damage to the company’s competitiveness, stock price and long-term shareholder value. Cyber risk management is a team sport that requires the entirety of the enterprise to ensure business resilience. What is required is a more inclusive message and collaboration that includes all enterprise risk management leaders. NACD (National Association of Corporate Directors) Khwaja Shaik X-Analytics (SSIC) John Frazzini CrowdStrike Dominique Shelton Leipzig Andrew Hoog John Carlin Erez Liebermann David Curran Avi Gesser Jamil Farshchi Jim Routh Robert Wilkinson Edward Amoroso Charles Blauner Sean Lyngaas Kim Nash The Wall Street Journal Anne-Marie Kelley Nasdaq Jay Leek Brian Peretti Jared Nussbaum Adam Cottini Thomas Etheridge Daniel Bernard Vanessa Mesics George Kurtz Shawn Henry CNBC Rocco Grillo Katherine Kuehn Bob Ackerman Jim Cramer Kevin Mandia Jen Easterly Learn more how the NACD (National Association of Corporate Directors) boardroom community is tackling this issue powered by X-Analytics (SSIC) https://lnkd.in/esrRhxJQ

The only thing more devastating for an organization's bottom line than a nearly $5M payout is the resulting press. There's no better example than the Montefiore breach, resulting from a former employee selling patient information to cyber-criminals almost a decade ago. Montefiore is required to conduct a comprehensive assessment of its EHRs, develop a risk management plan, implement mechanisms to monitor and record activity within systems, and enhance policies and procedures to comply with HIPAA rules. The settlement emphasizes the need for healthcare organizations to address cybersecurity risks promptly and vigilantly, with sector-wide breaches on the rise. Patients have rightfully become increasingly concerned about the security and privacy of their personal data within healthcare organizations. Establishing a sense of trust between patients and healthcare organizations is paramount, as it plays a crucial role in patient engagement, information sharing, and overall care outcomes. Cybersecurity incidents can have a devastating impact on this trust. The repercussions of such incidents can range from identity theft and financial fraud to the potential misuse of health data for discrimination or extortion. Patients must trust that healthcare organizations prioritize robust cybersecurity measures to safeguard their data, as the consequences of breaches extend beyond mere financial loss to the erosion of trust, which is highly detrimental to the patient-provider relationship and brand reputation as a whole. #Cybersecurity #Healthcare #HIPAA #DataBreach