How It's Difficult to Ruin a Good Name: An Analysis of Reputational Risk
From a post by Kenneth F. Belva in Bugtraq slightly modified: Given a publicly disclosed security incident, "to what extent is (or
isn't) investor confidence shaken? In other words, why is it the case
that information security incidents do not appear to have a greater
impact on both investor confidence as well as the public at large? To
phrase the question in financial terms: why isn't the top line effected
more than it is? To poignantly highlight this phenomena we ask: If 40
million customer credit card numbers are exposed in a security breach at
the credit card processor CardSystems , why do a significant number
people not cancel their Visa and/or Mastercard?"
This paper was delivered as the keynote presentation at the FiTech
Summit 2005.
