A proposal of event study methodology with Twitter sentimental analysis for risk management

Once organizations have the security incident and breaches, they have to pay tremendous costs. Although visible cost, such as the incident response cost, customer follow-up care, and legal cost are predictable and calculable, it is tough to evaluate and estimate the invisible damage, such as losing customer loyalty, reputation impact, and the damage of branding. This paper proposes a new method, called "Event Study Methodology with Twitter Sentimental Analysis" to evaluate the invisible cost. This method helps to assess the impact of the security breach and the impact on corporate valuation.