scholarly journals Data breach recovery areas: an exploration of organization's recovery strategies for surviving data breaches

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Zareef Mohammed

PurposeData breaches are an increasing phenomenon in today's digital society. Despite the preparations an organization must take to prevent a data breach, it is still necessary to develop strategies in the event of a data breach. This paper explores the key recovery areas necessary for data breach recovery.Design/methodology/approachStakeholder theory and three recovery areas (customer, employee and process recovery) are proposed as necessary theoretical lens to study data breach recovery. Three data breach cases (Anthem, Equifax, and Citrix) were presented to provide merit to the argument of the proposed theoretical foundations of stakeholder theory and recovery areas for data breach recovery research.FindingsInsights from these cases reveal four areas of recovery are necessary for data breach recovery – customer recovery, employee recovery, process recovery and regulatory recovery.Originality/valueThese areas are presented in the data recovery areas model and are necessary for: (1) organizations to focus on these areas when resolving data breaches and (2) future data breach recovery researchers in developing their research in the field.

Author(s):  
Kristin Masuch ◽  
Maike Greve ◽  
Simon Trang

AbstractInnovative IT-enabled health services promise tremendous benefits for customers and service providers alike. Simultaneously, health services by nature process sensitive customer information, and data breaches have become an everyday phenomenon. The challenge that health service providers face is to find effective recovery strategies after data breaches to retain customer trust and loyalty. We theorize and investigate how two widely applied recovery actions (namely apology and compensation) affect customer reactions after a data breach in the specific context of fitness trackers. Drawing on expectation confirmation theory, we argue that the recovery actions derived from practice, apology, and compensation address the assimilation-contrast model’s tolerance range and, thus, always lead to satisfaction with the recovery strategy, which positively influences customers’ behavior. We employ an experimental investigation and collect data from fitness tracker users during a running event. In the end, we found substantial support for our research model. Health service providers should determine specific customer expectations and align their data breach recovery strategies accordingly.


2015 ◽  
Vol 22 (2) ◽  
pp. 242-260 ◽  
Author(s):  
Robert E. Holtfreter ◽  
Adrian Harrington

Purpose – The main purpose of this paper is to analyze the trends of various types of data breaches and their compromised records in the USA using a new model recently developed by the authors. Design/methodology/approach – The 2,280 data breaches and over 512 million related compromised records tracked by the Privacy Rights Clearinghouse from 2005 through 2010 were analyzed and classified into four external, five internal and one non-traceable data breach categories, after which trends were determined for each. Findings – The findings indicate that although the trends for the annual number of data breaches and each of the internal and external categories and their related compromised records have increased over the six-year period, the changes have not been consistent from year to year. Practical implications – By classifying data breaches into internal and external categories with the use of this new data breach model provides an excellent methodological framework for organizations to use to develop more workable strategies for safeguarding personal information of consumers, clients, employees and other entities. Originality/value – The topic of data breaches remains salient to profit and nonprofit organizations, researchers, legislators, as well as criminal justice practitioners and consumer advocate groups.


2020 ◽  
Vol 28 (2) ◽  
pp. 275-301
Author(s):  
Ahmad H. Juma'h ◽  
Yazan Alnsour

Purpose This paper aims to analyze the effect of data breaches – whose concerns and implications can be legal, social and economic – on companies’ overall performance. Design/methodology/approach Information on data breaches was collected from online compilations, and financial data on breached companies was collected from the Mergent Online database. The financial variables used were related to profitability, liquidity, solvency and company size to analyze the financial performance of the breached companies before and after the data breach event. Nonfinancial data, such as the type and the size of the breaches, was also collected. The data was analyzed using multiple regression. Findings The results confirm that nonmandatory information related to announcements of data breaches is a signal of companies’ overall performance, as measured by profitability ratios, return on assets and return on equity. The study does not confirm a relationship between data breaches and stock market reaction when measuring quarterly changes in share prices. Research limitations/implications The main limitation of the study relates to ratio and trend analyses. Such analyses are commonly used when researching accounting information. However, they do not directly reflect the companies’ conditions and realities, and they rely on companies’ released financial reports. Another limitation concerns the confounding factors. The major confounding factors around the data breaches’ dates were identified; however, this was not enough to assure that other factors were not affecting the companies’ financial performance. Because of the nature of such events, this study needs to be replicated to include specific information about the companies using case studies. Therefore, the authors recommend replicating the research to validate the article’s findings when each industry makes more announcements available. Practical implications To remediate the risks and losses associated with data breaches, companies may use their reserved funds. Social implications Company data breach announcements signal internal deficiencies. Therefore, the affected companies become liable to their employees, customers and investors. Originality/value The paper contributes to both theory and practice in the areas of accounting finance, and information management.


2016 ◽  
Vol 36 (9) ◽  
pp. 1014-1036 ◽  
Author(s):  
Ying Fan ◽  
Run Hong Niu

Purpose The purpose of this paper is to explore influencing factors that affect the effectiveness of service recovery strategies using social network from operations management perspective. Specifically, the authors study the relationships between social media agent responses to customer complaints, customer emotion changes and customer satisfaction. Furthermore, the authors investigate the roles of recovery speed and failure severity in the service recovery process using social network platform. Design/methodology/approach The results are based on 347 mini cases drawn from the Twitter accounts of a sample of airlines. Grounded theory approach is used to conduct qualitative analysis using NVivo 9, a qualitative data analysis program. A conceptual framework was developed, then tested using χ2 analysis. Findings Agent responses that do not require customers to take further initiatives for problem solving have positive effects on customer emotion alleviation and satisfaction. In contrast, responses that provide further directions poses negative effect on service recovery outcomes. There is a strong positive linkage between customer emotion change and customer satisfaction. Surprisingly, the direct effect of recovery speed on customer emotion and satisfaction is not supported by the data. Rather, it plays a moderating role in affecting the relationship between agent responses and customer satisfaction. The qualitative data further reveals the pivotal role of failure severity, one of key service failure attributes. Research limitations/implications The authors study service businesses’ recovery strategies using social media. A conceptual framework is developed to link agent responses, customer emotion changes and customer satisfaction from the lens of service providers, using an operations-oriented approach. Finding on recovery speed and failure severity reveal that these variables play different roles when service recovery is operated on social media platform as compared to traditional channels. Additionally, relying on tweets as data sources has constrained us from assessing other long-term service recovery outcomes such as loyalty, repurchase intent and word of mouth. The drawback is resulted from the limited information conveyed through tweets, which tends to be short and brief. The study focusses on the airline industry, which limits the generalizability of the findings to other service industries. Practical implications The authors highlight the value and potential of service recovery strategies using social network and provide insights for recovery operations where agent responses should be focussing on real time problem solving. The findings support the benefits of empowering social network agents for service recovery operations. Improving recovery speed should be less of a priority as it serves as a qualifier when service recovery is operated via social network. Given the pivotal role of failure severity, it is critical for social network agents to stand in the shoes of the complaining customers, making imminent assessment of the actual failure severity and taking action accordingly in real time. In the meantime, effective communication through social network may help to lower perceived magnitude of failure by customers, which in turn enhance the effectiveness of other service recovery efforts. Originality/value This study is the first attempt to investigate the service recovery process using social media from an operations-oriented perspective. The results supports the potentials of employing service recovery strategies using social media.


2020 ◽  
Vol 11 (3) ◽  
pp. 511-527
Author(s):  
Kholekile Gwebu ◽  
Clayton W. Barrows

Purpose The purpose of this study is to expand on the existing literature by specifically examining data security incidents within the hospitality industry, assessing origins and causes, comparing breaches within the industry with those of other industries and identifying areas of concern. Design/methodology/approach A sample of data breach incidents is drawn from the Verizon VERIS Community Database (VCDB). Statistical comparisons between hospitality and non-hospitality industry firms are conducted following the Verizon A4 threat framework. Findings The results reveal that breaches between hospitality and non-hospitality firms differ significantly in terms of actors, actions, assets and attributes. Specifically, proportions of breaches in the hospitality industry are larger in terms of external actors, hacking and malware, user devices compromised and integrity violations. Additionally, compared to other industries, point-of-sales (POS) system breaches occur at a higher rate in the hospitality industry. The study finds that company size, hacking and malware predict the likelihood of a POS breach. Research limitations/implications The study uses secondary data and does not include the entire universe of data breaches. Originality/value In the quest to reduce data breach incidents, it is imperative to identify and assess the nature of data breach incidents between industries. Doing so permits the development of targeted industry-specific solutions rather than generic ones. This study systematically identifies differences between hospitality and non-hospitality data security incidents and then suggests areas where hospitality companies should focus future attention to mitigate breach incidents.


2019 ◽  
Vol 39 (11) ◽  
pp. 1260-1279
Author(s):  
Juliana Bonomi Santos ◽  
José Mauro Hernandez ◽  
Wandick Leão

Purpose The purpose of this paper is to investigate whether frontline employee empowerment (FEE) is necessary in the presence of streamlined recovery processes when customers attribute responsibility for the recovery process to the service provider. Design/methodology/approach The hypotheses were tested through a survey conducted with 253 bank customers, combined with two laboratory experiments run with 354 undergraduate students to assess service recovery efforts by an online store and a clinical laboratory. Findings Customers who attribute more responsibility for the recovery process to service providers only become more satisfied with FEE when recovery processes are not streamlined. The presence of streamlined processes and FEE is not sufficient to raise post-recovery satisfaction levels in individuals who attribute little responsibility for the process to service providers. Originality/value The study extends the literature on contingencies that influence the design of recovery strategies by showing when FEE matters. It also highlights the risks of designing service recovery practices, such as FEE or streamlined recovery processes, without considering that different customers do not evaluate such efforts in the same fashion. Research on service recovery design needs to fully integrate concepts from marketing, operations and human resources when the goal is to evaluate the effectiveness of such practices. The outcomes also offer managers insights for designing recovery strategies.


2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Atiya Avery

Purpose This study aims to evaluate changes to the financial performance of organizations in the 1–4 quarters following a data breach event. The study introduces two new variables, “intangible assets” and “extraordinary losses” to the discussion on the impact of data breaches on an organization’s financial performance. Intangible assets allow us to gauge the data breach’s impact on the organization’s brand reputation and intellectual capital reserves. Extraordinary losses allow us to gauge if organizations considered data breaches truly detrimental to their operations that they rose to the level of “extraordinary” and not an event that could be incorporated into its usual operating expenses. Design/methodology/approach This study uses a matched sample comparison analysis of 47 organizations to understand the short-term and long-term impacts of data breach events on an organization’s financial performance. Findings Data breach events have some negative impacts on the organization’s profitability more than likely leading to a depletion of the organization’s assets. However, organizations do not perform better or worse in the short-term or long-term due to a data breach event; the organizations can be considered financially sustainable in the 1–4 quarters following a data breach disclosure. Originality/value This study takes two approaches to theory development. The first approach extends the current literature on data breach events as negative, value declining events to the organization’s performance, which is referred to as the “traditional view.” The second view posits that a data breach event may be a catalyst for enhanced long-term organization performance; this is referred to as the organizational sustainability and resiliency view.


2016 ◽  
Vol 30 (7) ◽  
pp. 724-735 ◽  
Author(s):  
JungYun (Christine) Hur ◽  
SooCheong (Shawn) Jang

Purpose Given the increasing importance of relationship management in service recovery encounters, this study aims to investigate the role of consumer–organization relationship norms (communal versus exchange) in connection with the service recovery process. Design/methodology/approach Based on a thorough review of the previous literature, the model was developed. Using a scenario-based survey method, a total of 204 usable responses were obtained via self-administered questionnaires in the USA. Anderson and Gerbing’s two-step approach was used to assess the measurement and structural models. Findings The findings indicate that consumers’ recovery processes are influenced by relationship norms. For consumers in the communal relationship, perceived social recovery had a greater influence on satisfaction with the service recovery. Consumers in the exchange relationship reacted more sensitively to perceived economic recovery in terms of satisfaction with the service recovery. Research limitations/implications The focus of this study is restaurant consumers’ responses to service recovery in the context of an established relationship. Therefore, the results may not be generalizable for other consumers and segments. Practical implications The findings have important implications for increasing the understanding of consumer behavior in established relationships and suggesting effective recovery strategies. Originality/value This study investigates the effect of different relationship norms that could explain varying consumer responses to service recovery within a high-quality relationship. It also provides directions for improving consumers’ satisfaction with service recovery. This differs from previous studies that mainly focused on relationship quality.


2013 ◽  
Vol 81 (8) ◽  
pp. 2997-3008 ◽  
Author(s):  
Wei Li ◽  
Barry P. Katz ◽  
Margaret E. Bauer ◽  
Stanley M. Spinola

ABSTRACTRecognition of microbial infection by certain intracellular pattern recognition receptors leads to the formation of a multiprotein complex termed the inflammasome. Inflammasome assembly activates caspase-1 and leads to cleavage and secretion of the proinflammatory cytokines interleukin-1 beta (IL-1β) and IL-18, which help control many bacterial pathogens. However, excessive inflammation mediated by inflammasome activation can also contribute to immunopathology. Here, we investigated whetherHaemophilus ducreyi, a Gram-negative bacterium that causes the genital ulcer disease chancroid, activates inflammasomes in experimentally infected human skin and in monocyte-derived macrophages (MDM). AlthoughH. ducreyiis predominantly extracellular during human infection, several inflammasome-related components were transcriptionally upregulated inH. ducreyi-infected skin. Infection of MDM with live, but not heat-killed,H. ducreyiinduced caspase-1- and caspase-5-dependent processing and secretion of IL-1β. Blockage ofH. ducreyiuptake by cytochalasin D significantly reduced the amount of secreted IL-1β. Knocking down the expression of the inflammasome components NLRP3 and ASC abolished IL-1β production. Consistent with NLRP3-dependent inflammasome activation, blocking ATP signaling, K+efflux, cathepsin B activity, and lysosomal acidification all inhibited IL-1β secretion. However, inhibition of the production and function of reactive oxygen species did not decrease IL-1β production. Polarization of macrophages to classically activated M1 or alternatively activated M2 cells abrogated IL-1β secretion elicited byH. ducreyi. Our study data indicate thatH. ducreyiinduces NLRP3 inflammasome activation via multiple mechanisms and suggest that the heterogeneity of macrophages within human lesions may modulate inflammasome activation during human infection.


2017 ◽  
Vol 36 (4) ◽  
pp. 143-154 ◽  
Author(s):  
Ramesh Pandita ◽  
Meenakshi Koul ◽  
Shivendra Singh

Purpose The purpose of this study is to reflect a growing trend toward the introduction of new research journals in India. The study focuses on the number of journals introduced in India during the past decade, namely, for the period 2005-2014. Some of the key aspects analyzed include year-wise distribution of journals introduced, cumulative and annual corresponding growth of newly introduced journals, publishing form of journals, namely, online, print and hybrid. Some other aspects studied include distribution of journals on the basis of language, periodicity, state, etc. for both online and print journals. Design/methodology/approach To undertake the present study, data were retrieved from the official website of the National Science Library, New Delhi, and the analysis is based on the number of ISSN numbers issued by the National Science Library New Delhi during the period of study. Findings A total of 15,631 research journals were introduced in India from 2005 through 2014. Compared to 4,954 (31.69 per cent) online journals, 10,614 (67.90 per cent) print journals were introduced in India during the past decade, depicting print as the larger medium of journal publishing in India. During the period of study, research journals in India grew annually at 31.44 per cent. New Delhi, Maharashtra and Uttar Pradesh emerged as the three leading research journal publishing states of the country, while 82.86 per cent journals are published in English language and a maximum 32.52 per cent journals are published on a quarterly basis. Originality/value The study is first of its kind undertaken in India.


Sign in / Sign up

Export Citation Format

Share Document