IWG

Cyber Governance Alert: IWG

In the wake of COVID‑19 and the global lockdown, IWG has lost two-thirds of its market value in the span of two weeks. Though it was considered to be in a strong position to take advantage of WeWork’s financial governance failure heading into 2020, the Cyberhedge cyber-financial model alerted us to the potentially negative impact of its weak cyber governance prior to the current market troubles.

Why does Cyber Governance matter?

Investors need to know whether management is overinvesting or underinvesting in securing its most valuable asset—technology—relative to the increasing risks the company faces as a result of the ongoing digitization of the business. IWG has endured a dramatic share price hit amidst COVID‑19, and its Cyberhedge 1-Star rating indicates significant underperformance and heightened downside financial risk due to cyber at a time it can least afford a secondary shock.

What does the company need to do moving forward?

IWG can regain its footing as part of the economic recovery, but it will need to improve its cyber governance to reduce the risk of a further negative shock in the form of a cyber-related operational disruption like ransomware. However, the company’s net cash to current liabilities will worsen amidst the crisis. The likely result is a cash crunch where IWG has a limited ability to allocate budgets to anything other than overhead, interest expense and mission critical activities.

Close

Instantly download research in our library and be the first to get access to new content

Denis Bolshakov

Log out

We use cookies to make our website more user-friendly and effective

The Cyberhedge Indices Cookie Policy

What are the Cyberhedge Cyber Governance Indices?

These first ever benchmarks prove good cyber governance matters to shareholder value. They measure stock market performance of companies with good and with bad cyber governance scores. Scores are based on Cyberhedge’s proprietary cyber governance rating methodology. Market performance is tracked by an independent firm. The results show that companies with good cyber governance outperform their peers in US, UK, and EU markets.

Information that we collect

Here you can see and customize the information that we collect about you. To learn more, please read our privacy policy

Continue on website