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QuestionsCategory: Business QuadrantCybersecurity Risk
Leslie Lee asked 6 months ago

Hi, Have gone through the module on Cybersecurity risk.
The conclusion is, nobody is safe from cybersecurity risk, and nobody knows how severe it can get (if it happens). How then do we evaluate a company’s security risk? (Assuming all companies are connected to the internet)
 
Thank you.

1 Answers
Victor Chng answered 6 months ago

Hi Leslie,
 
You are right that nobody is safe from cybersecurity risk. It will be a common risk that will happen as times goes.
 
What we want to look out for, is risk that can really affect the business greatly. For instance, there is a hack into their system that crash their data or delete all their customer database which the company have no back up. This risk is extremely bad for the company which will have a big impact in their earnings and may take a long time to recover. Hence, this is the time we know that selling the company make more sense. 
 
On the other hand, if a hacker stole their customers data and demand a ransom amount. This risk is not that serious because the company can pay the ransom to get the data back which will affect their earnings and share price temporary. Overall, we know that the company can recover from it and it does present an opportunity for investors to look into such company.