A successful cyber breach threatens Private Equity assets, reputation, and Portfolio Company (PortCo) valuation.
What you should know –An undetected and unaddressed breach can lead to:
- Tarnished business reputations for you and your PortCo’s.
- Material financial losses from ransom to theft.
- Legal ramifications for non-compliance with current cybersecurity standards.
- Operational disruptions impacting the PortCo clients and market reputation.
- Reduced or uncertain valuation considerations of the PortCo.
PortCo’s face an increased likelihood of being targeted for a cyber attack based on studies of breaches:
- If one PortCo falls victim to a successful cyber attack, this increases the chances of other companies in the same portfolio being targeted.
- PortCo’s are more likely to be attacked shortly after an acquisition announcement. Case in point, EquiLend experienced a ransomware attack within one week of their acquisition by a Private Equity firm.
Read: Global fintech firm EquiLend offline after recent cyberattack.
Read: 5 Essential cybersecurity steps for Portfolio Companies.
How Cyber Risk Assessments help mitigate cybersecurity risks in your portfolio
What is a Cyber Risk Assessment (CRA)?
It’s a comprehensive tool that assesses the threats to your fund and highlights the highest priority cyber risks.
What do CRAs do for the Private Equity firm and their PortCo’s?
With a CRA, you can identify, quantify, and prioritize the risks that pose the greatest threat to your firm including:
- Objective and independent CRAs help specifically identify which fundamental cybersecurity controls your PortCo’s need and assist in overall benchmarking of the portfolio.
- For the Private Equity firm, a Cyber Risk Assessment mapped to the SEC Cyber Rule requirements helps both mitigate your risk and simplify regulatory compliance.
Identifying the severity of risks allows you to prioritize your remediation plan for both the Private Equity firm and the PortCo’s.
Read: The Importance of Independence
Get smart – Vanquish the Complexity of Cybersecurity with a Cyber Risk Assessment.
For PortCo’s, using an independent CRA offers a cost-effective solution to identify the fundamental controls that offer the maximum level of protection for the least possible amount of investment.
Trust Drawbridge for Your Cyber Risk Assessment Needs
At Drawbridge, cyber isn’t just one of the things we do — it’s the only thing we do.
Want to learn how Drawbridge’s expertise, service, and evolving technologies can help Private Equity firms protect themselves and their PortCo’s?
Watch our 30-minute webinar recording from March 7, entitled, “Protecting Private Equity Portfolio Companies: Using Data-Driven Insight to Mitigate Cyber Risk.” Click the button below to save your spot.
