What can be a potential outcome if a company experiences a cyber risk incident?

A cyber risk incident can lead to fraudulent financial losses due to the potential compromise of sensitive data, customer information, or financial systems. When a company experiences such an incident, it may face various risks, including unauthorized access to accounts, theft of funds, or exploitation of vulnerabilities by malicious actors. This can result in direct financial losses and could also impact customer trust, regulatory fines, and the costs associated with incident response and remediation efforts.

The other options do not accurately reflect typical outcomes of a cyber risk incident. Immediate bankruptcy is not a guaranteed consequence and usually would depend on the severity and financial health of the company prior to the incident; increased operational capacity is unlikely since a cyber incident usually disrupts operations rather than enhances them; and while a company may re-evaluate and improve its security policies after an incident, this is not a direct outcome of the incident itself but rather a proactive response.