Security Breaches Don’t Affect Stock Price

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Security Breaches Don't Affect Stock Price – Schneier on Security (schneier.com)

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Interesting research: “Long-term market implications of data breaches, not,” by Russell Lange and Eric W. Burger. Abstract: This report assesses the impact disclosure of data breaches has on the total returns and volatility of the affected companies’ stock, with a focus on the results relative to the performance of the firms’ peer industries, as represented…

Turns out you can’t trust the free market to penalise companies whose negligence permits data breaches. I am Dan’s lack of surprise. This is, of course, why security requires regulation.