CYBER SECURITY & COMPANY VALUATION
With the nature of attacks of Yahoo, Bank of Bangladesh, Target and endless other hacks, Cyber Security for sure is biggest emerging threat of the day, cutting all boundaries we have created for ourselves. Though Cyber Security can make or mar a company in totality, yet it is still to be factored in, in the valuation of the company. The reality of the biggest cyber attack being made public at Yahoo brought the valuation of the company to abysmal levels in no time.
The reputation of Target & Sony Productions took a beating with high profile hacks in those well established businesses, of long years of brand building. Nearly, all businesses fall in this category, the only difference being they were attacked and others were not. It’s just the matter of another day.
In the subconscious business mind it is still not treated as a risk and a fond hope that nothing wrong will happen to the business entity concerned, though the evidence & trends proves to the contrary. The nascent efforts too have not been taken in this direction and its left to whims and fancies of the company to treat cyber security, the way it wants affecting huge quantum of public money invested in the public limited companies.
It is time that a cyber security valuation / evaluation mechanism has to emerge, which would be factored in the final valuation of the company. There ought to be a matrix of mandated non-compromising parameters without which the company cannot be allowed to run in public interest. The further value adds to security will decide the valuation.
It would undoubtedly be an uphill task. If we don’t start, we will reach nowhere.
WITHOUT CYBER SECURITY FACTORED IN, NO COMPANY VALUATION IS WORTHWHILE.