Business Problems We Solve: When Should The Audit Happen?

 

Cybersecurity risk management audits are a way to ensure that the risk management plan is proceeding as planned and on schedule. When should the audit take place?

All business processes require planning, executing, evaluating, and repeating. Cybersecurity risk management is about relationship management and good relationships require maintenance. In business, relationships are critical -- and so is the perception of competence. For important business decisions -- and cybersecurity risk management is an important business decision -- wouldn't you rather work with a partner that is highly competent compared to one that is pleasant but not terribly effective?

So let's discuss when to maintain that cybersecurity relationship.

First, your plan should be scalable to address the right risks. There is no value in having "checked the box" back when you were growing the business, or a few CEOs ago, when the business and the threats you faced were different. The plan needs to grow with you.

Second, let's say you just implemented a scalable new plan. Hurray! That means your organization is worth more from an acquisition or investment perspective because your management is perceived as competent and well-organized. Thus when you look to acquire a prospect, you as the more competent business are going to need to scale your cybersecurity risk management plan to include the less competent prospect. You should have a cybersecurity risk management audit of the prospect performed early in your due diligence once you have a tentative M&A agreement in place. Think of the effort you went to in order to create your own cybersecurity risk management plan, and now imagine the level of effor to bring the prospect up to your standards of cybersecurity risk management competence.

As an investor you want to work with clients that are more competent because they require less remedial spending, i.e. you're not buying a "distressed" business. But maybe you're OK with that. Some investors are building a portfolio, and some are looking to buy, fix, and re-sell. The cybersecurity audit for the business you wish to sell should pre-date the offering so that you can price in the value of the competent management team. That means the audit should be completed two to three months before offering.

Ask us how we can help you to plan the right time for your cybersecurity risk management audit.