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From breach to bias: Measuring reputation value and trust recovery after cyber incidents in critical infrastructure

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  • Rushing, Bonnie
  • Xu, Shouhuai
  • Fairman, Ashley

Abstract

Cybersecurity incidents increasingly affect not only operational integrity but also business reputation, especially for companies managing critical infrastructure. This study introduces the Reputation Impact Score (RIS), a novel, repeatable metric that quantifies reputational damage using a combination of financial volatility, investor trust, and sentiment analysis from employees and customers. The RIS model is applied to real-world case studies of high-profile cybersecurity incidents affecting operational technology (OT) companies, including Equifax, SolarWinds, and American Water Works. By integrating open-source financial data and public sentiment ratings, the RIS enables organizations to assess recovery progress and predict potential reputational harm. This work introduces a practical framework to quantify reputational resilience in critical infrastructure firms.

Suggested Citation

  • Rushing, Bonnie & Xu, Shouhuai & Fairman, Ashley, 2025. "From breach to bias: Measuring reputation value and trust recovery after cyber incidents in critical infrastructure," International Journal of Critical Infrastructure Protection, Elsevier, vol. 50(C).
    • Handle: RePEc:eee:ijocip:v:50:y:2025:i:c:s1874548225000484
    DOI: 10.1016/j.ijcip.2025.100787
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    References listed on IDEAS

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    1. Michael Pirson & Deepak Malhotra, 2011. "Foundations of Organizational Trust: What Matters to Different Stakeholders?," Organization Science, INFORMS, vol. 22(4), pages 1087-1104, August.
    2. Dennis, Patrick & Mayhew, Stewart & Stivers, Chris, 2006. "Stock Returns, Implied Volatility Innovations, and the Asymmetric Volatility Phenomenon," Journal of Financial and Quantitative Analysis, Cambridge University Press, vol. 41(2), pages 381-406, June.
    3. Peng, Jin & Zhang, Haofei & Mao, Juan & Xu, Shouhuai, 2023. "Repeated data breaches and firm value," Economics Letters, Elsevier, vol. 224(C).
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