How Your Cybersecurity Score Impacts Your Stock Price

How Your Cybersecurity Score Impacts Your Stock Price

Your cybersecurity score impacts your stock price.

Here’s how:

The value of a company’s stock is based on trust.

Investors need to trust that the company will perform well, sustain its competitive advantage, and protect its customers’ information.

When a company gets hacked, it betrays that trust, influencing its credibility.

We have seen the stock price of Equifax, SolarWinds, etc., drop after they suffered data breaches.

They had to spend millions of dollars on forensic fees, lawyers, and PR consultants to recover their reputation in the public's eyes.

Here are 2 ways SecurityScorecard helps companies maintain that trust:

  1. Scores

We provide cybersecurity scores by measuring their cyber resilience from the outside.

This enables them to take the necessary steps to improve their cybersecurity.

We have demonstrated that companies with a bad score are 7x more likely to suffer a data breach than companies with a good score.

So we help them reduce the likelihood of a bad crisis where investors lose confidence in their ability to protect themselves.

  1. Badges

We have created the capability for companies to embed a badge demonstrating good security hygiene under their website.

It's like a Better Business Bureau badge that attests to good security practices of a company.

This way, customers and investors have more confidence in their cyber resilience, which is scientifically proven and tested by many insurance companies who are using us.


SecurityScorecard is the global leader in cybersecurity ratings and the only
service with over 12 million companies continuously rated. The company is headquartered in New York and operates in 64 countries around the globe.

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