If you were to buy a new house, you might be thinking of hiring a qualified home inspector to investigate the condition of the property before you make this life-changing investment. An inspector works for you to assess the condition of the property, including the heating systems, plumbing, electrical work, and other safety issues. Through this due diligence investigation, an inspector uncovers the problems and risks that could cost you and your family down the road.
And that’s what companies typically do in the due diligence phase of their merger and acquisition projects – for company finances and culture. Unfortunately, that’s rarely the case when it comes to cyber risks.
We in Nixu believe that when making major purchases, acquisitions, mergers, or even supply-chain partnerships these threats need to be assessed so that companies have the actionable insights required to make an informed decision. In these cases, we recommend conducting a threat assessment investigation that analyses a business’ digital assets, cyber vulnerabilities, and observable security policies. This process helps to uncover potential data leaks, configuration flaws, attack vector openings, and other threats that could inform, encourage, or dissuade a potential buyer.
In our experience, a cybersecurity business threat assessment should not take more than a month to complete, as every second is precious in the lead up to a new acquisition or partnership. Therefore, a threat assessment should not be a replacement for continuous cybersecurity defenses needed after the integration starts.
According to a survey conducted by Gartner, individuals who hold a position on the board of directors' level rate cybersecurity as the second-highest source of risk to the enterprise (Gartner 2021). We estimate that as cybersecurity awareness moves increasingly up the agenda in board rooms, benchmarking supply chain vendors and companies in the organization’s investment portfolio will become must-haves in the near future.
Whether you are acquiring a new business, merging with a peer, evaluating an important partnership, or even preparing your own business for sale, Nixu recommends conducting a cybersecurity business threat assessment to ensure you are not caught off guard.
An informed business is a smart business.
Mackenzie Storm - Threat Intelligence Product Manager
Mikael Jönsas - Senior Security Consultant
Pietari Sarjakivi - SVP Nixu Labs
If cyber due diligence is a topical matter for your organization, our cybersecurity experts are available to assist with the process. Read more about Nixu's cyber defense capabilities and reach out.
Source: Gartner Predicts 40% of Boards Will Have a Dedicated Cybersecurity Committee by 2025