Cyber Markets Roundup (Wk. 16, April '23): Creating a culture where cybersecurity risks are a priority

WHAT’S NEW

8 Themes Driving The Future Of Cybersecurity In 2023

Eight overarching themes of cybersecurity this 2023, as presented on Momentum Cyber's 2023 Cybersecurity Almanac:

• Cloud Security
• Resilience & recovery
• Smarter Security
• Security of Things
• Perimeterless World
• Data Security
• Shift-Left
• Layer 8 – The Human Factor [Team8.VC]

Why private equity cybersecurity is urgent now

How to manage private equity cybersecurity strategy throughout the transaction lifecycle

Cybersecurity is relevant for private equity in four distinct phases of the ownership lifecycle:

• Due diligence: The increasingly short period when the fund considers acquiring a potential portfolio company
• Announcement and onboarding: A period of heightened cyber risk and an opportunity for private equity to establish the tone and nature of its relationship with the portfolio company’s management and security team
• Value creation: Typically, a three- to five-year period in which cyber risk can be systematically reduced
• Exit: When a clean breach record and enhanced cybersecurity can be an attractive selling point or when inadequate cybersecurity can turn into a pain point in the sale and be a source of value erosion [EY]

Creating a technology risk and cyber risk appetite framework

When it comes to technology risk and cyber risk, financial institutions are increasingly shifting toward a risk-based approach to determine their priorities for controls. Those controls should be based on their current security capabilities, the likelihood of threats, and the impact of any potential cyber breach. However, the question remains: can organizations really make strategic, objective decisions about which controls they should and should not implement, given their appetite for technology risk and cyber risk? [McKinsey]

Rising cost of cyber attacks sends insurance policy charges soaring

Premiums for cyber insurance have soared over the past few years. According to Sarah Stephens, head of international cyber insurance at broker Marsh, prices started rising in late 2019.

Marsh’s market index shows that the cost of cyber insurance in the US was rising at a rate of more than 100 per cent year-on-year by the end of 2021, although that had moderated to 79 per cent in the second quarter of this year and 48 per cent in the third. [The Financial Times]

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