Call us now:
We are heading into a difficult place with cybersecurity funding, at a time when we require cybersecurity risk management skills and resources. We have seen some notable exits for the cybersecurity market recently (https://lnkd.in/eCM_fhwa), reductions in headcount and the effects of economic retrenchment.
On the opposite side we have seen for the first time the introduction of cyber regulation in the U.S and EU, that raises the need for cybersecurity risk management resources and risk mitigation. Regulators have stated that market forces have not addressed the cybersecurity risk management. Now the trajectory set by cyber regulators requires covered firms to demonstrate they can manage cyber risk and raises civil and criminal liabilities, as very real outcomes for non compliance.
Has the easy access to capital led to investing in products and services that do not address tangible risk reduction, but instead make unrealistic promises to manage cybersecurity come to an end.
For too long the seeming measure of success has been the ability of a company to raise capital. But as we are seeing with several recent failures, there is more to a company than raising galactic funds,â€
The introduction of cyber regulation, civil and criminal liabilities, and caselaw changes the cyber dynamic. Cyber regulation weeds out those funds and investments that do support clients reduce cyber risk. Risk mitigation is the order of the day, as is staying clear of regulatory oversight.
Is this what the VC and PE community should be seeking to invest in, finding solutions that build relationships with the board room, who are being held liable for cyber risk management. One thinks so?
Ted Dziekanowski Brian D. McCarthy Rachel V. Rose, JD, MBA Bob Dix
#theagustagroup #cybersecurity #cyberriskmanagement
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