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Most companies operate with one of two assumptions about cyber disruption: that strong enough defenses will prevent it, or that a well-written business continuity plan will manage it when it happens. Our research, drawn from a global survey of 1,000 senior executives across 20 industries in 13 countries, suggests both assumptions are dangerously wrong.
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When faced with cost increases, managers may need to make tough decisions. Generally, there are three options that managers can consider in these situations. One option is to maintain current prices, meaning the firm absorbs the higher costs and settles for lower margins. A second option is to raise prices, passing increased costs to consumers to maintain profit margins. A third option involves indirectly raising prices by reducing what consumers get for the same price.
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The traditional way companies think about regulatory penalties is almost entirely financial. Analysts model the balance-sheet impact. Legal teams assess appeal options. Communications drafts a statement. The penalty gets absorbed, the stock recovers, and the organization moves on. The implicit assumption is that the workforce will do the same.