Can cyberattacks improve your reputation?

Think Target and the hit it took when hackers stole the private information of millions, requiring many to update credit cards and the like. It’s a disaster that most executives believe will happen to them–not if, but when. So, that makes it even more amazing to find out that most executives think, according a study published in the Economist, that two thirds of CEOs think a good response to such an attack will enhance their reputation.

PRNewser from mediabistro reporting on the Economist story notes that while 66% think they will come out of such an event smelling like a rose, only 17% surveyed say they are “fully prepared.”

Hootsuite, perhaps the best social media management and monitoring tool that I know of, today experienced a hack attack in the form of a Denial of Service attack. One client emailed me Ryan Holmes’ response. The CEO of Hootsuite was fast, empathetic, transparent and almost completely on target. (Only thing missed in my mind was an apology, but perhaps he felt there was nothing to apologize for and he may be right).

A couple of things stand out to me in this new arena of crisis communication:

– CEO’s seem to get the idea that fast, transparent communication can actually enhance a reputation even when customers/stakeholders have been hurt

– There seems to be quite a gap between the confidence displayed and the level of preparation. That is surprising. I would think the confidence would come after preparation, not before.

– The reality (certainty?) of this kind of crisis seems to be quite well accepted.

Now, we will see how it all turns out. My prediction: Another Target-type hacking will occur and the press and social media pundits will be better positioned to blame the company. “They knew it was coming but did not take the steps they needed to to prevent it–it was profits above people all over again.” Then, the crisis communication game really begins.