How Cyber Risks Can Impact M&A Due Diligence

by | Mar 21, 2016

Mergers and acquisitions were once only about ensuring that the deal would be lucrative for all involved. But today this topic takes on a whole new relevance due to cyber threats. A report from Freshfields Bruckhaus Deringer, an international law firm, says that 83 percent of those responding to the survey would abandon a merger if they felt there were significant cyber breaches possible from the acquisition.

Director Education

Experts confirm that over half of all American corporations actually do not analyze cyber threats during their due diligence. Though some research is done into this area, many directors believe this subject is not thoroughly researched before a merger takes place. This is a topic of grave concern to many CEO’s and CFO’s for several reasons. Recent cyber thefts have occurred where personal and credit card information was stolen from customers shopping at their favorite stores.

Everyone loses when a cyber theft takes place, but it has started to become more personal for corporate directors and boards. That’s because consumers have now determined that these losses could have been prevented if only the company had better protected their data. And they’re hiring personal injury attorneys to sue these large corporations. These types of lawsuits put the entire board of directors at risk as consumers seek to place blame for lost personal data.

New Cybersecurity Solutions

Director and officer liability insurance has become essential for board members and it can protect your personal assets during a lawsuit. But the solution to this growing problem is far more complex.  At Cybernance, we’ve put together a program that addresses cyber threats at every level. We understand the importance of communicating with all stakeholders in a common language. Please contact us to learn more.

Get more in-depth coverage with the Cybergovernance Journal

Unique Facts About D&O Liability Insurance

The fact is that victims often want to allocate blame when something goes wrong. This can leave the directors and managers in a company at risk.

Third Party Risk Assessment Management

Today’s savvy CISO’s understand third party risk assessment. With so many data breaches taking place each year, consumers are understandably upset.

Boardroom & Director Training for Cybersecurity

As Americans go about their regular activities, they must be constantly concerned whether their credit card information is truly secure.

Do You Have the Best D&O Policy?

An exceptional D&O policy will not only protect your personal assets from these threats, but it can also give you peace of mind.

Best Practices in Vendor Management

Hackers now seem to have no trouble getting into the most highly protected systems. This is the problem facing many third-party vendors today.

Cyber Thefts Made Worse By a Failure to Communicate at High Levels

In times of a cyber breach, fast communications are crucial to stop it. Yet many corporate heads are not sure how to handle the cyber risk issue.

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