The cybersecurity industry is expected to reach $200 billion by 2020, underscoring a very real threat. Consider the egregious cyberattacks endured by prominent U.S. retailers Home Depot and Target, or those JPMorgan has been trying unsuccessfully to fend off. Because technology is used more frequently, IT systems are increasingly susceptible.
Private equity firms are not immune. In fact, PE professionals’ access to sensitive information about portfolio companies, coupled with their insatiable need for analytical data, makes their firms a prime target for hackers. The question is: What are private equity firms doing to protect themselves against the threat? The answer: Many could be doing more.
You can’t lump all PE firms together, but most are not proactive about cyber protection. Cybersecurity is an afterthought, second to dealmaking and running portfolio companies, and it is not yet viewed as a large enough financial threat to merit serious attention. The truth is, private equity firms have cyberrisk at many levels. […]
Armand Hensen, managing director in Grant Thornton’s Advisory Services practice, specializes in information technology risk management and security, including cybersecurity issues.