Read this https://dojmt.gov/wp-content/uploads/Glasswasherparts.com_.pdfLinks to an external site. sample breach letter “SAMPLE DATA BREACH NOTIFICATION” and describe how two different economics theories and two different social sciences theories relate to the letter.
Economic Theory’s
- Information Asymmetry: This theory deals with situations in which one party has superior or more information than the other. Regarding the data breach, the extent of the breach and the risks to customers were initially known to the company and its platform provider better than the customers themselves. The notification attempts to address this imbalance by alerting those who are impacted and enabling them to take steps to avoid it. The disparity was temporarily caused by the notification delay, which was requested by law enforcement so as not to jeopardize the investigation.
- Externalities: Externalities are expenses or benefits that are carried by a party other than the one who chose to bear them. The data breach letter serves as an example of negative externalities, in which customers and financial institutions, rather than the business itself, bear the cost of a cybersecurity failure (such as fraud or identity theft). Attempts to reduce these external costs include the actions recommended in the letter, such as monitoring financial statements and getting in touch with credit card companies.
Social sciences Theory
- Trust and Social Capital: The networks of connections that exist among the individuals who reside and work in a given society that allow its smooth operation are referred to as social capital. One essential element of social capital is trust. A data breach damages a company’s reputation with customers and may even reduce social capital. Effective corrective measures and open communication are necessary to regain this trust, as the breach notification letter tries to do.
- Crisis Communication Theory: This theory investigates the ways in which organizations interact with different stakeholders in times of crisis. Managing stakeholder perceptions and minimizing damage to reputation are the goals of effective crisis communication. The letter from Glasswasherparts.com uses a number of crisis communication techniques, including giving a thorough explanation of the event, detailing the actions the company took to address the breach, and advising clients on self-defense. This strategy aims to rebuild confidence and lessen the crisis’ detrimental effects on the business’s relationship with its clients.