From: AEIdeas
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The role of government
When businesses are obligated by regulations (and punitive fines) to publicly disclose when information is lost or stolen, they are incentivized to improve the controls and procedures in place to ensure the safety of the data residing on their networks. For firms in industries handling highly sensitive data such as banking and health care — which are already subject to specific cyber-risk regulations to show accountability for the data they retain on customers — this is a major benefit.