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Cyber Security Group

Trickle Down Breach Effects

Created: 15 Oct 2012 • Updated: 17 Oct 2012
BJT's picture
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I was sitting with the Personal Counsel for a State Governor for a full day of Cyber Security and Policy Discussions and this topic presented itself so we spent some time defining it throughout the day.
 
The bottom line question: 
Why is it in a State's best interest to, not only protect its own IT ecosystem, but also encourage and even assist in protecting facilities and the States embedded companies and industries?
 
Simple really:  Trickle Down Breach Effects 
If a company or industry which has a prime and/or dominant location within a State or Territory, and that entity suffers a significant breach of Personal Identifiable, Intellectual Property, or even something more detrimental; it could have a ripple effect that would reach far beyond the limits of that single entity.  In the past, we have seen things like brand reputation hits, which often precedes or contributes to a drop in stock price.  Same thing goes for revenue.  Consumers could be less likely to consume goods or services from a company with a history of exposing sensitive information. With these revenue drops, the State takes an immediate hit on sales tax and other associated incomes.
 
Continuing further down the line, in sometimes unquantifiable numbers, the affected entity may be forced to make some tough decisions like moving jobs out to other locations or perhaps reducing headcount within the State or Territory.   This could spike unemployment, which is never good especially in an election year, and also taxes the public systems of welfare/unemployment, health, and other social programs would be affected.
 
So the bottom line of this conversation that led to this is such that it is In EVERYONE'S best interest, government and private sectors, to bond together and stay strong in Cyber Security.  Let's embrace DHS' declaration of October Cyber Security Awareness Month to further enhance these relationships and fortify our protection strategies. 
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