Why does cyber governance matter? EON’s poor cyber governance performance risks undercutting the post-M&A financial benefits of its consumer solutions strategy. Despite management’s emphasis on digital transformation, financial constraints could limit the near-term resources available to address the company’s valuation discount related to cyber weaknesses. What does the company need to do moving forward?

Why does cyber governance matter?

EON’s poor cyber governance performance risks undercutting the post-M&A financial benefits of its consumer solutions strategy. Despite management’s emphasis on digital transformation, financial constraints could limit the near-term resources available to address the company’s valuation discount related to cyber weaknesses.

What does the company need to do moving forward?

Increased focus on cyber governance should start with addressing key cyber weaknesses such as its network complexity and related security vulnerabilities. Through improved governance of its digitization efforts, EON can better protect against the risk of a downside financial impact on its margins, mitigate a potential credit downgrade risk and shrink its valuation discount due to cyber governance.