Are companies in your portfolio successfully managing their digital transformation strategies?
The pandemic is showing that knowing the answer will improve investment returns. But choosing the right sectors is not enough. Outperformance comes from predicting winners and losers within sectors. Cyberhedge can help. Knowing the right questions to ask about technology before the pandemic hit is why the Cyberhedge Cyber Governance Indices outperformed the market by 19% in the US and 41% in the EU in 1H2020.Read full article
Cyberhedge Indices outperformance in 1H2020 offer proof that cyber governance matters more than ever amid COVID‑19
COVID‑19 has impacted different industries in different ways. For example, it has affected domestic travel differently from financial services. But companies within the same sector have performed very differently in the past few months—with some significantly outperforming their peers while others underperformed. According to our analysis, cyber governance—the measure of how well a company manages its technology risks relative to the risks it faces as a result of increasing digitization—provides an explanation for this differential.Read full article
A Case Study in Cyber Governance: Pitney Bowes
Is it implemented its wide-sweeping digital transformation strategy, Pitney Bowes had three priorities to consider — top-line growth, cost savings, and cybersecurity — but it only chose to prioritize two, leaving vulnerable its newly expanded threat surface. Company leadership only realized the impact of this error after having to announce two incidents, which reflect poorly on the brand and its technology management.Read full article
The data behind "It's not if…but when"
For the first time, there is actual data to support the premise, “It’s not if… but when,” and perhaps more importantly, “Has it already happened?” Verodin provides companies with important proof points to pinpoint and better manage areas of cyber risk, while Cyberhedge models quantify this cyber risk in financial terms — all before a hack occurs.Read full article
Another hack leads to market losses. Time for more ‘activist’ behavior from asset managers
Another hack leads to market losses. Time for more ‘activist’ behavior from asset managers. Demanding improved cyber governance is one example how asset managers can fulfil the FCA’s value for money rules. The customer data breach reported by Marriott International on 30thNovember stands out as one of the most noteworthy security incidents of 2018, even in a year that saw serious incidents suffered by British Airways, Facebook, Uber, and many other household names.Read full article
Cyberhedge Research: Volume 2: September 2019
Capital One Financial
Capital One’s loss of customer data is another example of the increasing (not so hidden) costs of corporate “Digital Transformation” strategies. Capital One was a market leader in creating operational efficiencies with technology to lower overhead costs. A more detailed analysis, however, suggests the company didn’t re-invest enough of the cash it generated from technology savings back into making its network and cloud more secure.Read full article
Cyberhedge Research: Volume 1: May 2019
Why is Cyber Risk So Difficult to Manage? Companies Are Too Focused on the Threat
Why is cyber risk managed differently from other major risks companies face? Energy companies don’t spend outsized budgets on hedging risk from swings in energy prices. Well managed energy companies spend their money to extract more value of their existing assets, ensuring profitability in any price environment. Likewise, shareholders of manufacturing companies expect a larger percent of annual budgets to be spent improving process and profits, not insuring and protecting the factory grounds.Read full article