Last week, we received a clear signal that Wall Street has taken notice of corporate cyber security risks.
Moody’s credit rating agency forced us to dig up the unpleasant memories of Equifax’s blockbuster 2017 breach. In Moody’s report downgrading Equifax’s own credit rating, investors were surprised to see the company’s data security issues highlighted as a top reason for the weakened credit outlook. This means that Equifax’s debt costs are rising because of the holes in the company’s cyber security profile.
This downgrade is the first of its kind, specifically highlighting cyber security risks and costs. In February, Moody’s warned that “as the potential for significant cyberattacks rises globally, the growing intersection of supply chains, connectivity and access to data is creating new vulnerabilities for governments and businesses.”
In the February report, Moody’s informed investors of their framework for understanding cyber risks, including assessing a company’s vulnerability to cyber attacks and gauging the “potential impact of cyber events via disruption of critical business processes and negative reputational effects.”
Is this just a public company problem?
Sadly, no. It’s a big issue for public issuers, but it’s important to note that a move by the major credit rating agencies (Moody’s, S&P and Fitch) sets the tone for banking and credit extension. This means that bankers will start concerning themselves with our clients’ cyber protections.
When 9 out of 10 breaches are caused by a human opening the door for an attacker, it’s critically important to identify your organization’s riskiest employees. INFIMA and its Partners identify and remediate dangerous online behaviors in your organization.
Oh and for the cherry on top: you can satisfy Security Awareness Training requirements while foiling hackers’ most effective moves.
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