Economic Theories

Agency Theory

It aims to show how relationships between the organization and the service provider are that if not any of the sites act to seriver the other side, it will create a trust issue. However, it connects to the letter that the company counts on a third-party provider to keep the data safe.

Cost-Benefit Analysis

This step aims to understand the economic concept, which involves weighing the costs and benefits before making a decision. However, while the organization is waiting to let the users know about the breach, the company starts collecting the costs of this breach and the potential panic by the users and reputation damage that the company may face.

Social Sciences Theories

Agency Theory

This theory suggests that the customers trusted the company that they would protect their data from being attacked so the company could buy the customers trust using this step. Thus, if a breach happens to this company, it means that the company failed to keep their customers trust, and if they let the customers know about the breach, it will do the worst damage to that trust.

Cost-Benefit AnalysisThe sociologist Ulrich Beck mentions that modern life, with its reliance on technology, involves constant risks that society must manage. Thus, this is connected to the letter: when this data breach occurs, the company should let the customers know so they can protect themselves, and the company suggests ways to reduce it.