Cybersecurity Checklist for Private Equity Firms

Private equity firms are top targets for sophisticated cyberattacks because they manage a large amount of money and store valuable data on individuals with high net worths. Despite this risk, private equity cybersecurity regulations tend to be less robust than they should be.

Luckily, there are ways to protect your firm. At Agio, our team of specialists compiled this cybersecurity checklist to help you secure your data before, during, and after a transaction.

Before the Transaction

Mitigate potential threats by taking action before you conduct a deal. Your firm should already have strict password policies and multi-factor authentication in place. Additional steps you should take include:

• Brainstorm: Work with your chief information officer (CIO) or cybersecurity specialists to identify the top security threats.
• Research: Conduct a thorough analysis of surface web, dark web, and social media sites to identify data breaches related to your company, employees, and partners. Examine records of past violations and security incidents.
• Update: Test security systems and all backup systems and update them as necessary. You should be confident in your cyber defense and data recovery capabilities.
• Practice: Run an incident response plan (IRP) drill to see how your company performs. Update the IRP procedures as needed.

During the Transaction

Continue risk management throughout the deal by engaging in due diligence best practices. You should also use a VPN to defend your remote connections during the transaction. Our due diligence checklist includes:

• Assess: Review the company’s cybersecurity policies, procedures, and employee training programs.
• Investigate: Examine the company’s recent cybersecurity assessment and evaluate the findings.
• Double-check: Use an independent cybersecurity firm to conduct a new risk assessment.
• Understand: Analyze whether the company complies with industry-standard risk management.

After the Transaction

Our private equity checklist continues with actionable ways to protect your information once the transaction is complete:

• Secure: Monitor all of your systems for possible threats and conduct a cybersecurity audit.
• Remediate: Design and implement a plan to destroy unnecessary items that contain confidential information.
• Educate: Provide your employees with cybersecurity training to remind them of best practices.
• Confirm: Hire a cybersecurity company to run a thorough assessment of your firm’s cyber vulnerabilities.

Protect Your Business With Agio

This checklist can help your private equity firm implement more robust cybersecurity procedures. However, as cyberattacks continue to evolve, so should your security. Agio is here to provide you with effective solutions to protect your firm from future attacks. Ready to protect your company? Contact us online today to get started.