Cybersecurity Threats and Organisational Response: Textual Analysis and Panel Regression

Anand Jeyaraj, Amir Zadeh and Vikram Sethi

Journal of Business Analytics, 2021, vol. 4, issue 1, 26-39

Abstract: This study examines the relationship between cybersecurity threats faced and cybersecurity response planned by organisations. Classifying cybersecurity threats into four types – physical threats, personnel threats, communication and data threats, and operational threats – this study examines organisational responses to such threats. Using textual data on cybersecurity threats and response gathered from the 10-K reports published by 87 organisations, topic modelling was conducted to assess the threats and response. A cross-sectional time-series regression model fitted on the topic weights showed that cybersecurity response was influenced by cybersecurity threats, beyond the time-invariant control and period variables. Specifically, physical threats and operational threats influenced the technical response; physical threats, communication and data threats, and operational threats influenced the non-technical response; and personnel threats influenced the overall response. Implications for research and practice are discussed.

Date: 2021
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DOI: 10.1080/2573234X.2020.1863750

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