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COVID-19 has disrupted the business world and left many corporations scrambling to regulate their operations. In the midst of this chaos, some businesses see alternative. One method businesses try to reap the benefits of the present scenario is thru mergers and acquisitions (M&A).
M&A exercise was already on the rise pre-pandemic, with a report $4 trillion in offers introduced in 2019 based on Dealogic. And whereas the pandemic has induced a short slowdown in M&A exercise, specialists imagine that it’s going to decide again up once more in the approaching months.
What function does cybersecurity play in all of this?
As businesses look to M&A as a approach to develop, it’s vital to think about the potential cybersecurity dangers that come together with it. A examine by IBM discovered that 60% of corporations skilled a rise in cyberattacks after an M&A transaction.
There are quite a lot of the reason why cyberattacks improve after an M&A. One is that hackers see M&As as a chance to take advantage of confusion and disruption through the transition interval. Additionally, corporations typically don’t have the identical degree of safety after they’re first beginning out, making them extra weak to assault.
Another motive for elevated cyberattacks is that M&As typically result in the consolidation of IT (info know-how) techniques. This can create new vulnerabilities that hackers can exploit.
Who has been accountable for almost all of those assaults?
In 2018, a examine by Kaspersky discovered that just about half of all cyberattacks towards businesses have been carried out by organized crime teams.
What corporations are most in danger?
Any firm that’s contemplating an M&A ought to concentrate on the potential cybersecurity dangers. However, there are some corporations which can be extra in danger than others.
One instance is healthcare corporations. The healthcare trade has been a goal for cyberattacks in current years, and that is prone to proceed as healthcare corporations look to M&A as a approach to develop. In 2018, Anthem, one of many largest healthcare corporations in the US, was the sufferer of a serious information breach that affected almost 80 million individuals.
Another instance is banks and different monetary establishments. Financial establishments are sometimes targets for cyberattacks as a result of massive quantities of money they maintain. In 2016, Bangladesh Bank, the central financial institution of Bangladesh, was the sufferer of a cyberattack that resulted in the theft of $81 million.
So what can corporations do to guard themselves from these dangers?
There are quite a lot of steps corporations can take to cut back the danger of cyberattacks throughout and after an M&A transaction. One is to carry out due diligence on the goal firm’s cybersecurity posture earlier than the deal is finalized. This consists of assessing their safety insurance policies, procedures, and applied sciences.
Another vital step is to create a complete cybersecurity integration plan. This needs to be performed as early as doable in the M&A course of and ought to tackle how the 2 corporations will mix their safety techniques, processes, and cultures.
Finally, it’s essential to maintain communication open between the IT and safety groups throughout and after an M&A. This will assist make sure that everyone seems to be on the identical web page and that any potential dangers are shortly recognized and addressed.
While there are inherent dangers related to M&A exercise, these may be mitigated with correct planning and execution. By taking the mandatory steps to evaluate and tackle cybersecurity dangers, corporations can improve their probabilities of a profitable M&A transaction.
Cybersecurity is a fancy and ever-changing subject, which might make it tough for corporations to maintain up with the latest threats. This is why it’s vital to associate with a cybersecurity agency that has the expertise and experience that can assist you safe your techniques.