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There are various famous security breaches occur over the years such as Under Armour, the Home Depot, Ashley Madison, JP Morgan, Yahoo, Target, Sony and Equifax. The main purpose of this investigation is to analyze the impact of security breaches on financial status of business organizations. Mixed research methodology has used for evaluating the impact of security attacks.  


Website defacement, sabotage, denial of service, theft of proprietary information, unauthorized access and virus are main types of security breaches. The business organizations have come to enhance their knowledge regarding information security breaches along with their mitigation solutions. By analyzing various surveys, it can be stated that occurrence of security breaches adversely affects the financial status of the companies.  The primary effect of security data breaches can be evaluated in terms of integrity, availability and confidentiality. On the basis of stock market return, it is quite easy to capture the explicit and implicit costs associated with the breaches. 

Summary of previous research

[1] examined the impact of Information Security (IS) breaches on the organizational profitability. In this study, matched sample comparison analysis has performed for investigating the impact of security implications on the organizational performance. The key findings of this study showed that disaster recovery and more effective remediation are two possible reasons in order to downward the shifts in cost associated with the security breaches.

[2] investigated the impact of IS breaches on organization with the use of event study methodology. The key findings of this study showed that security breaches have very less long term impact on the economic status of organization. The reputation of organization can be reduced if it does not invest for securing its organizational assets.

Research question

“What is the impact of IS breaches on performance and financial status of business organization?”


For performing this study, a quantitative research methodology has used which evaluates the impact of security breaches on the performance of different industries such as financial institutions, education, manufacturing, healthcare, government, IT products & services, professional services, Retail, Real Estate, Non-profit organizations etc.

Results and discussion

The results of this research showed that financial institutions are highly targeted by the cybercriminals in the current scenario. The security breaches become a major concern for most of management of each and every organization. It has found that presence of security issue results in lower morale, loss of revenue, reputational damages etc. Today, there are various agencies and organizations which perform security breaches investigations. Famous organizations include U.S. Postal Service, Secret Service, Department of Justice, the FTC, Social Security Administration, Electronic Privacy Information Centre etc.  


[1]L. Gordon, M. Loeb and L. Zhou, "The impact of information security breaches: Has there been a downward shift in costs?", Journal of Computer Security, vol. 19, no. 1, pp. 33-56, 2011. Available: 10.3233/jcs-2009-0398 [Accessed 19 March 2019].

[2]M. KO, "THE IMPACT OF INFORMATION SECURITY BREACHES ON FINANCIAL PERFORMANCE OF THE BREACHED FIRMS: AN EMPIRICAL INVESTIGATION", Journal of Information Technology Management, vol. 17, no. 2, 2006. Available: [Accessed 19 March 2019].

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