Risk management, firm reputation, and the impact of successful cyberattacks on target firms

• Main Authors: Kamiya, Shinichi, Kang, Jun-Koo, Kim, Jungmin, Milidonis, Andreas, Stulz, René M.
• Other Authors: Nanyang Business School
• Format: Article
• Language: English
• Published: 2021
• Subjects: Business::Information technology; Cyber Risk; Cyberattack
• Online Access: https://hdl.handle.net/10356/152432
• Institution: Nanyang Technological University

We develop a model where a firm has an optimal exposure to cyber risk. With rational, fully informed agents and with no hysteresis, a successful cyberattack should have no impact on a financially unconstrained target's reputation and post-attack policies. In contrast, when a successful attack i...