Cyber risk used to be the kind of problem you could delegate. Something for the CISO, the IT team, and maybe an external auditor to worry about once a year. That comfort zone is gone. In the last decade, a new reality has set in: a single cyber incident can erase hundreds of millions of The post The $700 million question: How cyber risk became a market cap problem first appeared on TrustCloud.

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Cyber incidents have evolved from IT problems into capital events that directly affect company valuations. Research shows breached companies typically see stock drops of 3–7% immediately after disclosure, with some cases like Equifax losing 35% within weeks. The SEC now mandates disclosure of material cyber incidents within four business days, making cyber oversight a fiduciary duty for boards. Companies with strong pre-breach security posture and transparent communication recover faster. The post argues organizations should quantify cyber risk in financial terms, tie security metrics to business outcomes, and treat cybersecurity as a value lever rather than a cost center.

The $700 million question: How cyber risk became a market cap problem

How a technical glitch turned into a capital event