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Severe cyber security breaches, such as those having legal or
regulatory consequences, involve the loss of hundreds of
thousands of records and hurt the firm's brand, caused share
prices to fall on average 1.8 percent on a permanent basis, the
analysis of 65 companies affected since 2013 globally has found.
Investors in a typical FTSE 100 firm would be worse off by an
average of £120 million after such a breach, the report said.
Overall the cost to shareholders of these 65 companies would be
in excess of 42 billion pounds ($52.40 billion).
CGI's analysis compared each company's share price against a
cohort of similar companies to isolate the impact of cyber
breaches from other market movements, during incidents detailed
in a breach index compiled by Dutch security firm Gemalto.
Two-thirds of firms had their share price adversely impacted
after suffering a cyber breach. Financial firms were the worst
affected, followed closely by communications firms.
"Financial services experience the greatest burden in terms of
impact, reflecting the high levels of regulation, the importance
of customer confidence and the potential for financial fraud to
be a facet of the breach," the report said.
Those least affected were retail, hospitality and travel
companies.
Hacking attacks and other cyber security breaches have impacted
companies across the world in recent years, from retailer Target
in the United States in 2013 to British communications firm
TalkTalk in 2015.
($1 = 0.8015 pounds)
(Reporting by Helen Reid; Editing by Robert Birsel)
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