Growth Through Acquisition? How to Identify IT Risks for Mergers and Acquisitions.
Although the cyber risks associated with mergers and acquisitions are major, oftentimes, they are overlooked. In a post-merger and transition environment, cyber security risks such as regulations regarding data privacy and breach disclosure have the opportunity to impact valuations.
At BECA, we put businesses onto paths for new growth and productivity through leading IT services. We’ve seen the potential risks associated with mergers and acquisitions, and we don’t want you to fall victim to hackers or thieves. Our team has outlined ways to identify these IT risks so you can remain compliant and secure.
Risk Assessment: Short and Long-Term
Mergers and acquisitions present challenges such as data or network security but can be overcome with thoughtful planning and execution. The due diligence process is critical to ensure short-term benefits are maximized while taking advantage of the long-term potential that mergers and acquisitions can offer. Data can become vulnerable during the transition period, particularly for public companies exposed to greater publicity. Therefore it is essential that the necessary steps are taken to protect data and reduce the risk of corruption.
Data is not always the goal of the attacker, however, and should not be the only area of focus. During the acquisition process, you must look at the bigger picture from a risk perspective as well. Compromised data may just be the first phase of the attack, and many hackers may try to dive deeper into the acquiring company through data access. This means that if an outside party has reached the acquiring company, they would then have the ability to access information and internal knowledge related to the newly merged organization. This emphasizes the need for cyber security during the merger and acquisition process.
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To help protect against these IT risks for mergers and acquisitions before they happen, it is important to have your IT staff involved in the merger process as soon as possible. These individuals play an extremely large role in the protection of assets and brand management during the merger and acquisition process. Additionally, they should be involved in all activities during the merger process to ensure that they can question and understand the risks posed at each stage.
IT Risk Assurance
While it is ideal to have a dedicated cyber security team involved in the merger and acquisition process, sometimes that is not feasible. Many times, companies delay engaging with these cyber security teams for several reasons, such as inexperience with the entirety of the process or internal privacy reasons caused by exposing individuals to the merger too early on in the process.
These IT risks for mergers and acquisitions are impactful, and it is important to consider the best possible option for you and your organization. The BECA team can help you analyze and prioritize the IT risks within your company during a period of growth through acquisition. For nearly 50 years, we have helped our clients succeed through our strategic focus beyond technology, relying on IT brain power, comprehensive service, and expert support.