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U.S and EU capital markets and regulators are rightly focused on ESG, as demand grows for socially conscious investment strategies. Highlighting the close relationship between capital and corporate social responsibility.
One should also be concerned about the link between capital and cybersecurity regulation. With the U.S, EU and Australia moving quickly to regulated cybersecurity risk management governance and strategy. One suspect that those looking to invest in the UK defence industry will be also be looking at cybersecurity regulation, especially that from the SEC and U.S DoD. Regulation that will effect international trade, as it sets requirements for U.S public and private firms, that includes BAE systems plc, to comply with cybersecurity risk management if they want access to U.S capital markets and DoD contracts. There’s also the ‘G – Governance’ to consider, as it applies to both ESG and cyber regulation in the U.S and EU.
Australian Prudential regulators just landed Medibank with a $250million capital uplift for its failure to manage cyber. With a short term effect on share price and a medium term effect on capital.
Ted Dziekanowski Stephen Pitt-Walker, JD, FGIA Rachel V. Rose, JD, MBA
#cybersecurity #cyberregulation #cyberriskmanagement #governance #esg
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