Economic Theories:
- Cost-Benefit Analysis: The notification demonstrates cost-benefit considerations by
alerting customers and urging protective actions. This response weighs the potential
financial impact on the company and customers, aiming to mitigate further losses. - Keynesian Economic Theory: This theory supports governmental or third-party
intervention in cybersecurity. In this case, involving a cybersecurity firm and federal law
enforcement underscores the importance of external assistance to stabilize trust and
prevent further financial impact.
Social Science Theories: - Social Contract Theory: The letter reflects an implicit social contract between the
company and customers, recognizing an obligation to inform and protect customers after
a data breach. - Risk Society Theory addresses societal responses to large-scale risks, like cybersecurity
threats. The letter shows the company’s acknowledgment of these risks and the need to
involve the organization and customers in minimizing potential harm.