How PE Firms Can Mitigate Portfolio Company Cybersecurity Risk

Cybersecurity risks are growing daily as bad actors become better educated and cyber crime is a regular news occurrence. There is no quick fix to protect against increasingly complex cybersecurity risks, as companies of all sizes must find ways to strengthen their cyber practices. This involves improving their physical information technology infrastructure, their company procedures and their users’ human action. Private equity (PE) firms should understand that they have historically operated differently than the companies in which they invest. It remains up to PE firms to protect their investors and themselves by taking additional steps to fortify their portfolio companies. In a guest article, Jason Elmer, managing partner at Drawbridge Partners, explains the best first steps for a PE sponsor to proactively work with its portfolio companies to create a cybersecurity program that includes preparation, response and recovery steps. See “SEC Confirms Cyber Disclosure Expectations in New Guidance” (Apr. 26, 2018); and “SEC Tackles Internal Cybersecurity Issues While Sharpening Cybersecurity Enforcement Focus” (Oct. 5, 2017).

To read the full article

Continue reading your article with a PELR subscription.