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Why Is It Essential to Evaluate Cybersecurity Before Mergers and Acquisitions?

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BharatMalviya
Why Is It Essential to Evaluate Cybersecurity Before Mergers and Acquisitions?

Proactive inquiry and timely response can help mitigate the negative impact that improper cyber hygiene can have on a business acquisition.


Third-Party Risk Management (TPRM) is now becoming a significant issue for security teams responsible for the secure integration of third-party infrastructure and systems during mergers and acquisitions, given the rise in third-party breaches, along with successful large-scale attacks against big technology providers such as Microsoft and Solarwinds.


Changes in the Mergers and Acquisitions Process


The due diligence process is no longer just about traditional concerns around finance, liabilities, contracts, IT, and key man risk. Cybersecurity too is now becoming a crucial concern during the M&A process.


With limited review time to assess security risks, organizations involved in mergers and acquisitions must focus on specific areas of cybersecurity and threats, particularly those that exist beyond the firewall, if they are to properly identify and manage risks connected with their investments.


Operations Management and Security Engineering


It is much too often in charge of tasks that require a dedicated security team. In many companies, there is only one IT manager who leads a small cross-functional staff. Even if a corporation has an associated MSSP or MDR vendor, the level of protection required to limit investment risks is still not guaranteed.



Full article: Why Is It Essential to Evaluate Cybersecurity Before Mergers and Acquisitions?


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