http://emergentchaos.com/archives/2007/08/second-breach-closure-verus.html The Emergent Chaos Jazz Combo Wed, 01 Feb 2012 19:20:40 +0000 hourly 1 http://wordpress.org/?v=3.3.1 http://emergentchaos.com/archives/2007/08/second-breach-closure-verus.html/comment-page-1#comment-3880 Dissent Fri, 17 Aug 2007 16:00:40 +0000 http://emergentchaos.com/?p=2464#comment-3880 You may not have to change your stats, Adam. When I was looking into Verus, I had come across something posted on June 16th that indicated that they had already been in financial straits before the breach. If I can track down that link again, I'll send it to you. You may not have to change your stats, Adam. When I was looking into Verus, I had come across something posted on June 16th that indicated that they had already been in financial straits before the breach. If I can track down that link again, I’ll send it to you.

]]> http://emergentchaos.com/archives/2007/08/second-breach-closure-verus.html/comment-page-1#comment-3879 Alex Fri, 17 Aug 2007 14:54:12 +0000 http://emergentchaos.com/?p=2464#comment-3879 I do come off a bit didactic there, don't I? The theory is something like this: In a B2C exchange, the (informed) consumer made the "bad choice" to choose the company with the breach. In a sense, you have no one to blame but yourself. You can add to that fact that the vast majority of consumers won't be aware of an incident until they get a disclosure notice. In a B2B play, especially an SMB with a limited client set - there is usually one specific point of contact who made the "bad choice". They are now accountable for that choice to others (namely their superiors), not just themselves. As such, they will feel pressure to "make sure it doesn't happen again." Now obviously the theory needs testing against some priors. But as we model incidents using FAIR, it's pretty obvious that SMB B2B clients have a much greater emphasis on reputation damage. I do come off a bit didactic there, don’t I?
The theory is something like this: In a B2C exchange, the (informed) consumer made the “bad choice” to choose the company with the breach. In a sense, you have no one to blame but yourself. You can add to that fact that the vast majority of consumers won’t be aware of an incident until they get a disclosure notice.
In a B2B play, especially an SMB with a limited client set – there is usually one specific point of contact who made the “bad choice”. They are now accountable for that choice to others (namely their superiors), not just themselves. As such, they will feel pressure to “make sure it doesn’t happen again.”
Now obviously the theory needs testing against some priors. But as we model incidents using FAIR, it’s pretty obvious that SMB B2B clients have a much greater emphasis on reputation damage.

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