‘Expert’ in digital transformation does poor job managing its own technology, posing increased risks for the companies it provides IT services to.
Why does Cyber Governance matter?
As a service provider to 98 of 100 Fortune 100 companies, 10 of the top 10 electric utility companies worldwide and 10 of the top 10 global aerospace and defense companies, worst-in-class 1-Star rated Micro Focus is not just a risk to itself, but could also pose a larger systemic risk to the critical digital infrastructure of its clients. Similar to other 1-Star companies, failure to address weaknesses increases the probability of an operational disruption like ransomware, significant financial damage and further share price slide.
What does the company need to do moving forward?
Management should avoid doubling down on cost cutting as the only way out of the weak strategic position. Rather, it should increase investment in the management of cyber risks to bolster its own digital transformation, thereby improving its ability to do the same for clients.