A new report examines how an organization’s approach to cyberattack incident and response strategies can have implications for investment in the broader cybersecurity market.
On Thursday, financial services and credit rating provider Moody’s published new research, including a survey of financial services, enterprise firms, infrastructure providers, public sector organizations, and government entities.
Out of roughly 5,000 issuers asked to complete the survey, conducted between April 2020 and April 2021, 1,300 responded.
According to the researchers, many organizations involved in the market today — including global debt issuers — are increasing their investments in cybersecurity but their “preparedness levels and defensive capabilities vary widely.”
It only takes one successful cyberattack to severely damage an organization’s reputation, finances, and share price. One incident alone can open up a company to scrutiny by shareholders and regulators, and lawsuits are also a factor, whether launched by investors or class-action consumers impacted by a breach.
Moody’s researchers say that “cybersecurity governance sets the tone for an issuer’s overall cyber strategy.” The report states:
“To date, the cost of cyber events has generally been manageable for issuers we rate and has only rarely resulted in lasting financial harm or reputational damage. However, as the cost of these attacks continues to rise, the