Protecting Your Company's Cybersecurity in the Age of Mergers and Acquisitions
The Hidden Dangers of Mergers and Acquisitions: Protecting Your Company’s Cybersecurity
As businesses navigate the complex world of mergers and acquisitions (M&A), they often overlook a critical aspect of the deal: cybersecurity.
The Risks
- Data breaches: When two companies merge, they often have different security protocols in place. If one company has a weaker security posture than the other, it can create an entry point for hackers.
- This is especially concerning when sensitive data such as financial information, customer records, or intellectual property is involved.
- For instance, if Company A has a robust security system, but Company B’s system is outdated and vulnerable, the integration of their systems could expose Company A’s sensitive data to potential threats.
- This is especially concerning when sensitive data such as financial information, customer records, or intellectual property is involved.
- Security gaps: The integration process can expose existing security vulnerabilities, making it easier for attackers to gain access to sensitive data.
- This may be due to outdated software, unsecured networks, or inadequate employee training on cybersecurity best practices.
- For example, if Company A uses a specific type of software that is no longer supported by the manufacturer, but Company B still uses the same software with current updates, the merged entity could inherit security vulnerabilities from Company B’s system.
- This may be due to outdated software, unsecured networks, or inadequate employee training on cybersecurity best practices.
Protecting Your Company’s Cybersecurity
To mitigate these risks, consider the following steps:
- Conduct a thorough risk assessment: Identify potential security gaps and vulnerabilities before the merger takes place.
- This should include an evaluation of both companies’ existing security measures, as well as any third-party vendors or contractors involved in the deal.
- For instance, if Company A has a robust security system, but Company B uses a different security provider that is not as effective, it would be best to assess and upgrade Company B’s security measures before integration.
- This should include an evaluation of both companies’ existing security measures, as well as any third-party vendors or contractors involved in the deal.
- Develop a comprehensive cybersecurity plan: Create a plan that addresses the unique security needs of your organization, including incident response and data protection.
- This should also involve establishing clear roles and responsibilities for cybersecurity within the merged entity.
- For example, if Company A has an experienced Chief Information Security Officer (CISO), but Company B does not have one, it would be best to establish a new CISO role or assign responsibilities to an existing employee who can oversee cybersecurity efforts.
- This should also involve establishing clear roles and responsibilities for cybersecurity within the merged entity.
Additional Tips
- Ensure that all employees are trained on the new security policies and procedures after the merger.
- Continuously monitor your network for potential threats and vulnerabilities.
- Update your incident response plan to address any changes in business operations or security posture.