Due Diligence Cybersecurity

This is often used to identify risks associated with potential targets for mergers acquisitions.
Due diligence cybersecurity. Given the current cyber environment with companies of all types targeted by hackers and with large sophisticated organizations reporting major data breaches one would expect cybersecurity assessment to be a standard component in the m a due diligence tool kit. Over 99 million for gdpr infringements following a data breach that was notified to the ico in november 2018. The limra ny cybersecurity due diligence questionnaire ddq will collect the cybersecurity information needed by covered entities from producers agencies and brokers considered third party service providers tpsps. Traditionally m a diligence has primarily been focused on finance legal business operations and human resources.
A vendor cybersecurity due diligencequestionnaire is a written assessment given to a vendor to gain a better understanding of their cybersecurity environment. Since all deals aren t the same they don t require the same level of diligence. A more recent example of unintended consequences following an m a transaction which again helps to highlight the importance of cybersecurity due diligence is the uk information commissioner s ico recent announcement of an intention to fine marriott international inc. Our experts can also help identify material cyber related weaknesses that must be addressed if you are to avoid or fully account for potential post transaction risks fines and costly remediation.
As noted earlier cyber due diligence isn t as established nor does it analyze standardized data as other types of due diligence. However swiftly recognition is growing that cybersecurity due diligence. Independent cyber due diligence from kroll can help assure that the cybersecurity history and outlook at your target company is strong. Managers now considering what form cybersecurity due diligence should take have a wealth of resources as well as a growing array of compliance obligations to consider.
These are typically administered during the acquisition phase so that organizations can identify potential risks before partnering with vendors.