“There are a number of areas where cyber security really plays a significant part, both in terms of the ongoing value of an organisation and at any point where there is M&A activity,” Faizul Ali, EY’s lead partner for cyber security for transaction advisory services in the UK and Ireland said, according to City A.M.
Following a major cyber attack in 2016, internet giant Yahoo saw its own value tumble in a deal with Verizon. The two firms had originally agreed to a deal worth US$4.8bn for Verizon to take control of Yahoo.
Account names and passwords for close to 200 million Yahoo accounts were for sale on the dark web following the breach, which saw Verizon revise its offer down to US$4.48bn — a drop of US$350m.
“Cyber risk and security is about so much more than keeping personal data secure. A cyber breach has a whole host of different consequences that could come into play that many businesses don’t realise."
Robyn Adcock, Cyber Technology Practice Leader at Gallagher
“The reputation of a business can be irreparably damaged, operations may have to stop for a prolonged period of time or the company and its directors could face legal action.”
Adcock said that cyber insurance is designed to meet a variety of different challenges that can arise in the event of a data breach.
“Cyber insurance can cover you for a variety of threats linked to a data breach. Many cyber insurance policies also include a suite of expert first responders who can help reduce the damage from a data, reputation and legal perspective.”