Cyber Security: Don’t Overlook Cyber Due Diligence, Businesses Urged
Cyber threats should be factored into companies’ due diligence processes, a survey of global firms finds, adding there is ‘worrying complacency’ among companies during business risk assessment.
Merger and Acquisition deals were found to be particularly vulnerable to reductions in value, and even collapse in the final stages, because cyber risk is not being adequately factored in.
The survey by Freshfields Bruckhaus Deringer law firm said there was ‘a worrying level of complacency towards the assessment of cyber risks during M&A deals, despite increasing awareness of the cyber security risks facing businesses’.
Cyber attacks are a growing risk to businesses across the world. A breach by hacktivists, state-sponsored agents, organised crime cartels or company insiders has the potential to disrupt operations, damage brands and erode corporate value.