Cybersecurity Disclosure and Corporate Reputation

Abstract

This chapter emphasizes the importance of cybersecurity for a corporation as today's organizations are more vulnerable than ever and their enemies are in the form of viruses and malware. The work provides evidence that cybersecurity can have an impact on brand value, market value, and overall corporate reputation. It focuses on depicting the global scenario with reference to cybersecurity disclosures by corporations and how it is important in today's digitized era where data is the most valuable and vulnerable asset. With rapid digitalization, cybersecurity has become a major concern for all businesses, especially when there is financial and reputational damage to cybersecurity breaches and incidents. Even in the absence of clear cybersecurity laws and regulations, corporations are opting for voluntary disclosure. Existing literature explains this as an attempt to mitigate any potential risk or occurred risk through increased transparency which will build the trust of all stakeholders.