A recent study has revealed a significant increase in mergers and acquisitions (M&A) during the first quarter of 2023 compared to the same period in the previous year. The surge, which amounted to a 42% increase, highlights the growing interest in business consolidation and expansion. However, amidst these strategic moves, it is crucial for businesses to prioritize cybersecurity to safeguard sensitive data and protect against potential cyber threats.
In today’s digital age, data is a fundamental asset for any business. Therefore, it is essential to comply with cybersecurity laws and regulations to ensure the protection of this valuable resource. Unfortunately, despite the implementation of security measures, the number of data breaches continues to rise. In the fourth quarter of 2020, a staggering 125 million data sets were hacked, marking the highest number of exposed data records in recent years. The consequences of these breaches are detrimental to both the affected organizations and the individuals whose data has been compromised. Lawsuits, monetary fines, and the risk of identity theft are just a few of the repercussions that businesses and victims face.
To mitigate these risks, businesses need to adhere to best practices in cybersecurity. A recent report by Kaspersky outlines several key cybersecurity assessments that should be considered. These include examining past cybersecurity audits, analyzing vulnerabilities in valuable digital assets, checking the history of web hosting providers, and conducting thorough checks on acquired companies’ cybersecurity practices. By following these practices, businesses can identify weaknesses and implement appropriate measures to mitigate risks effectively.
The importance of cybersecurity becomes even more evident in the context of mergers and acquisitions. In the Middle East, 165 deals were made during the first quarter of 2023, resulting in a profit of $25.8 billion. When acquiring an established business or merging with another entity, it is essential to prioritize cybersecurity alongside the traditional due diligence processes. Alexey Vovk, the Head of the Information Security Department at Kaspersky, emphasizes the crucial role cybersecurity plays in these strategic moves. He states that, along with legal, financial, and governance due diligence, cybersecurity should be a focal point. This is particularly true when it comes to third-party services used by the acquired company, as their cybersecurity infrastructure must be thoroughly examined to ensure the protection of client data.
Furthermore, the integration of digital infrastructures and interconnected teams also poses cybersecurity challenges. Access control and endpoint security need to be rigorously monitored to ensure that not all data is accessible to all employees. Human error also contributes significantly to cyber threats, as demonstrated by a study conducted by Kaspersky among employees in the Middle East, Turkey, and Africa. The research found that 20% of employees would click on a malicious link in a phishing email, highlighting the need for ongoing cybersecurity training and awareness programs.
To avoid cybersecurity breaches and vulnerabilities in business operations, it is crucial to address any pending or previous cases of security breaches promptly. This requires the involvement of IT experts and a dedicated cybersecurity team to handle these matters effectively.
In conclusion, as mergers and acquisitions continue to increase in the business world, it is essential for companies to prioritize cybersecurity to protect sensitive data and mitigate potential risks. By adhering to best practices and conducting thorough cybersecurity assessments, businesses can safeguard their digital ecosystems and ensure the longevity and success of their operations.