Cyber risk is a business metric associated with financial loss, disruption, or damage caused by unauthorized or wrongful use of, or denial of service to, an organization’s information technology systems.
Pre-transactional cyber risk due diligence is a vital component of the modern mergers and acquisitions due diligence process. By understanding the extent of an acquisition target’s cyber risk, an acquirer can make informed decisions during the transaction regarding operations, risk, and ultimately valuation.
Without pre-transactional cyber risk due diligence, undisclosed cyber risk can manifest itself in many forms, including decreased business efficiency, loss of valuable intellectual property, exposure to legal risk, reputational damage, fraud, and even catastrophic business failure.
Blackpeak’s cyber risk due diligence is an individualized solution that can addresses cyber risk by understanding pre-existing problems, establishing whether intellectual property has been previously compromised, estimating post-acquisition security mitigation costs, and analyzing security related barriers between systems.
Blackpeak offers three cyber due diligence solutions that can be undertaken separately or together, depending on the acquirer’s desired level of due diligence and the particulars of the deal:
- Simulating thousands of known attacks on the server and systems to assess system-wide vulnerabilities
Quantification of Cyber Assets at Risk
- Mapping the information landscape of the company
- Locating the company’s valuable data and assessing the specific vulnerability of each of the company’s platforms.
- Calculating the volume of data at risk assigning dollar-value estimates to the components of data at risk
- Creating a data-driven plan to mitigate cyber risk and its implications for the client’s existing operations
- Quantifying the appropriate level of cyber insurance to mitigate exiting risks
Full Cyber Security Audit
- Deploying an onsite team of cyber risk experts who catalog and analyze the company’s software and hardware
- Reviewing existing policies and procedures, and augmenting them as necessary
- Comprehensively diagnosing existing problems and weak spots in the IT system
- Creating an individual response and mitigation plan to address problems identified