Measuring information security breach impact and uncertainties under various information sharing scenarios

Abstract

This study draws on information theory and aims to provide simulated evidence using real historical and statistical data to demonstrate how various levels of integration moderate the impact and uncertainties of information security breach on supply chain performance. We find that the supply chain behaves differently under various levels of integration when a security breach occurs. The entropy analysis revealed that the wholesaler experience the most uncertainty under system failure and data corruption. This sort of impact-uncertainty information will aid in designing and managing a resilient supply chain poised for minimal breach impact.