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RISK: Cyber attacks may mean fewer investors: KPMG | Canadian Insurance
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RISK: Cyber attacks may mean fewer investors: KPMG

Poor cybersecurity can cost a business its financial backing. A KPMG survey reveals 79 percent of investors are less likely to put money into a company that has been hacked.

Surveyed investors believe fewer than half of the companies they currently invest in adequately manage cyber risk.

“A serious breach brings the competence and teamwork of senior executives and the board into sharp focus,” says Malcolm Marshall, global leader of KPMG’s cyber security practice. “What we are seeing is companies struggling to demonstrate that they are taking cyber risk seriously to their existing and potential investor base. The inability to demonstrate that a business is doing so could make it a less attractive investment proposition.”

Marshall suggests board directors approach cybersecurity as a risk issue and not just an IT problem; understand the legal implications of cyber breaches; regularly discuss cyber risks with experts; establish a firm-wide management framework; and identify which risks to avoid, accept, mitigate and transfer.