The Effectiveness of Privacy Audits
This study concludes that there is a benefit to forcing companies to undergo privacy audits: "The results show that there are empirical regularities consistent with the privacy disclosures in the audited financial statements having some effect. Companies disclosing privacy risks are less likely to incur a breach of privacy related to unintentional disclosure of privacy information; while companies suffering a breach of privacy related to credit cards are more likely to disclose privacy risks afterwards. Disclosure after a breach is negatively related to privacy breaches related to hacking, and disclosure before a breach is positively related to breaches concerning insider trading."
Posted on July 9, 2013 at 12:17 PM • 6 Comments