From: Cyber Risk Network
Dealmakers recognize cybersecurity as a risk but it is one that is not assessed during mergers and acquisitions.
A survey by international law firm Freshfields Bruckhaus Deringer found 90 percent of respondents think a cyber breach would reduce a deal’s value but 78 percent admitted cybersecurity is not a part of M&A due diligence.
“It’s surprising that dealmakers recognize the growing threat of cyber attacks to businesses, but generally aren’t addressing the risk during deals,” said Chris Forsyth, co-head of the firm’s cybersecurity team, in a statement. “You wouldn’t dream of buying a chemical plant without assessing environmental risk, so why would you buy a data-driven business without assessing the risks it faces around data management and cybersecurity?”
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