TL;DR
- PE firms and their portfolio companies (PortCos) are emerging as prime targets for cyber attackers due to their reputation for relatively low cybersecurity investment coupled with access to extensive amounts of personal data.
- With such dire financial consequences, the PE firm CFOs, in particular, need to play a direct and proactive role in cyber risk management, helping to minimize a portfolio’s exposure.
- On-demand cyber risk quantification (CRQ) is especially helpful in this area, as it can translate complex cyber terms and metrics into understandable business implications, such as financial loss and ROI, assisting CFOs in making data-driven, informed decisions.
- CRQ can provide an aggregate view of the portfolio’s cyber risk exposure, offering insights such as average annual financial losses due to cyber events in general, the likelihood of experiencing specific cyber events, and the respective monetary damages.
- By leveraging this quantified information, CFOs are equipped to recommend cost-effective mitigation plans, optimize cyber insurance policies, reduce liability levels, and determine the proper resource allocation necessary to ensure portfolio stability.
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