Call us now:
Beware the activist investor if you’re a cybersecurity vendor (and if you’re an entity covered under cyber regulations). One has been interested in the state of the cybersecurity product market for many years. More so when people such as Chris Inglis raised concerns over the failure of market forces to address the cyber security equation, e.g. more money in, less security out.
What is intriguing is as the cyber threat noticeably increased, cyber regulations appear, one would assume that cybersecurity vendors would be making hay? But we have seen over the past year the cyber market has tightened, and now activist shareholders are circling to value out of struggling firms. Only recently we saw the UK security firm Darktrace acquired by Toma Bravo.
Cybersecurity has for a long time focused on the wrong side of the equation, for to long it has based its model on promising to solve the cybersecurity equation. When boards have had no clear understand of their cyber risks. Leading to a failure of delivery, risk reduction and value creation for both the end consumer and security vendor.
One suspects cyber regulation will change this, but not in a way vendors are prepared for. Going forward the question boards have to ask is how will this product improve my risk management, governance and regulatory compliance. If it doesn’t do I need you? Creating more opportunities for activist investors, who get the idea and opportunity. More problems for boards that ignore it.
@Thaddeus Dziekanowski Brian D. McCarthy
Veritas GRC Rapid7
#cybersecurity #cyberriskmanagement #cyberregulation
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