Private Equity & Finance

Strong cyber security governance is critical at all points in the investment chain

Private equity firms must secure sensitive data and include assessments of cyber security risks on potential portfolio companies in order to protect their investments.

 The cost of a ransomware attack in the financial sector now exceeds $2 million. 34% of financial service organizations were impacted by a ransomware attack during the course of 2020. Breaches that go public can have lasting non-monetary consequences, such as eroding consumer confidence and affecting long-term profitability. Cybercriminals often view private equity firms as the weakest link because they usually lack the cyber protection available at corporate institutions.

Understanding the overall threat landscape and how attacks can affect your organization at each stage of the deal cycle is a crucial step in developing a robust security strategy.

Private equity security priorities

Securing Portfolio Companies

Portfolio companies that lack effective IT security or that have yet to reconcile a past cyberattack will be less attractive to potential buyers. That can not only erode the value of a private equity firm’s investment, but it also can tarnish the firm’s reputation and negatively impact future fundraising.

Avoiding direct cyber attacks on PE firm

Sensitive financial and client data makes PE firms themselves a valuable target for cyber criminals.

Managing complications arising from digital transformation

The widespread digitization of industry has increased cyber risk and emboldened malevolent actors to intensify their attacks on digital infrastructure.

Mergers & Acquisitions

Why mergers present unique cyber security challenges

Companies being bought and sold are often prime targets for cyberattacks, as mergers indicate that a company has resources and a strong balance sheet. M&A events are often widely publicized, which catches the attention of adversaries. New ownership and management teams transitioning into or out of roles present opportunities for attackers while businesses are in this transitional phase.

Mergers require a consolidation of networks, applications, directories, and countless other assets in order to establish a single, unified view of the network. This presents unique vulnerabilities and risks, such as differing levels of maturity between companies and exposure of complicating security gaps. Maintaining network security and completing the integration quickly are competing priorities that are difficult to manage simultaneously

Secure assets across the deal life cycle

Effective intervention can save money and protect investments at all stages of the deal life cycle. Mergers require a carefully developed plan to manage cybersecurity risks during the transition period. Soteryan has experience developing security strategy specific to mergers and acquisitions, which includes: 

  • Post-merger readiness assessment
  • Integration risk assessment
  • Post-merger incident response playbook
  • Combined vulnerability assessment
  • Oversight of protection against cyber adversaries, improving the speed of integration without compromising security

Soteryan Solution

Stay up to date with compliance to stay ahead of threats

Keeping up to date with regulatory compliance protects private equity organizations. See how Soteryan can ensure your compliance

Risk and Compliance Consulting

rapid assessment

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