Markets are starting to get to grips with cybersecurity as a risk and changing their expectations of companies that get hacked.

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Markets are starting to get to grips with cybersecurity as a risk and changing their expectations of companies that get hacked. There was a time when a hack would have little impact on share price and it would rebound over a short period. While there is still time for the Okta share price to gather pace, I agree with the WSJ article the markets are playing close attention, and I think there are a few hurdles ahead for the company. Including a down grade. (https://lnkd.in/guU8iWCg)

The SEC’s recent proposal for cybersecurity risk management, strategy, governance and incident disclosure while it may not apply, material risk reporting to the SEC does. Looking at the Okta share price I would say the hack was a material risk. Okta operates to FEDRAMP standards and has a provisional ATO, assessed to high security standards, that can be revoked and the DoJ’s civil fraud initiative is focusing on organisations that fail to apply appropriate security standards.

Cloud providers such as Okta being put under spot light for their security.

Ted Dziekanowski

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