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 Theories

Information Asymmetry: This theory applies to situations where one is superior or better informed than the other. For the data breach, the extent of the breach and the threat to customers were originally better known to the company and its platform provider than to the customers themselves. The notice attempts to even out this inequality by informing the affected and giving them an opportunity to act against it. The disparity was temporary, thanks to the held-back notification that the police had asked for not to prejudice the inquiry.

Externalities: Externalities are costs or benefits that fall on a party other than one that incurred them voluntarily. The data breach letter is an example of negative externalities, where customers and banks, rather than the company itself, absorb the cost of a breakdown in cybersecurity (e.g., identity theft or fraud). Efforts to reduce these external costs include the measures proposed in the letter, such as monitoring financial accounts and calling credit card companies.

Social Sciences Theories

Trust and Social Capital: Webs of connections that develop among the individuals residing and working in a given society allowing it to run smoothly are referred to as social capital. One of the elementary elements of social capital is trust. A data breach damages the reputation of an organisation with customers and can even reduce social capital. Firm corrective measures and open communication must rebuild this confidence, as the breach notice letter tries to accomplish.

Crisis Communication Theory: The theory examines how organizations deal with various stakeholders when confronted with crises. Being able to manage stakeholder perceptions and reduce damage to reputation are the objectives of successful crisis communication. The Glasswasherparts.com letter employs various crisis communication strategies, such as providing a detailed description of the incident, elaborating on what the company did to remedy the breach, and instructing clients on self-defense. This strategy aims at rebuilding trust and mitigating the negative impacts of the crisis for the company’s relationship with clients.