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Cyberhedge Releases New Cyber Governance Rankings by Sector
[September 10, 2019]

Cyberhedge Releases New Cyber Governance Rankings by Sector


NEW YORK, Sept. 10, 2019 /PRNewswire/ -- Cyberhedge, a financial services firm specializing in managing technology risk, today released the below rankings of cyber governance by sector as part of its September issue of Cyberhedge Research. Cyberhedge created the performance metric of a cyber governance rating as a way to compare how companies manage the operational risks of their technology investments and network security.

 





1.  Utilities
2.  Financials
3.  Consumer Discretionary
4.  Information Technology
5.  Materials

6.  Industrials
7.  Consumer Staples
8.  Healthcare
9.  Communication Services
10.  Energy


 

Some results should not be surprising. The financial services sector has been in hackers' sights for several years and most executive teams understand that cybersecurity is an existential threat to the business. However, low rankings for healthcare and industrials should concern investors, executives, and regulators.

Technology is now driving the value of companies across all sectors. As a result, cyber vulnerabilities are born out of business strategy decisions made by the board and C-suite. A few combined trends suggest that these two sectors are far from solving the underlying challenges contributing to their low rankings:

  • Growth through acquisition. Policy trends have accelerated growth via M&A, leading to increasingly complex and more difficult-to-manage networks that exponentially increase the number of vulnerabilities.
  • Accelerated third-party outsourcing. The corporate drive for greater efficiency and cost savings has created additional supply chain vulnerabilities most companies haven't considered when making strategy decisions about outsourcing. 
  • Increased reliance on IoT. Operational processes often combined with sensors and data transmission execute critical functions that were previously entirely analog-driven. This has significantly increased cost-efficiency and productivity, but also vulnerability.

"There are huge potentially negative operational and financial impacts of technology in all sectors. We have seen this most recently in breaches like Marriott and Capital One. In the case of healthcare and industrials, the prioritization of growth, cost savings, and operational efficiencies have left them more vulnerable to cyber attack than other sectors," said Cyberhedge Founder and CEO Ryan Dodd. "Cyberhedge's proprietary data can help businesses across all sectors begin to quantify cyber risk just as they would quantify any other systemic business risks – in dollars."

Cyberhedge generated its cyber governance rankings by examining its proprietary CyFi scores (e.g. the composite Cyber + Financial metrics) for more than 5,000 U.S. companies over the last 12 months, determining how many companies per sector were ranked in the company's "worst-in-class" category on CyFi metrics. Beyond simple external cyber metrics, CyFi metrics include cash constraints companies face relative to cyber threats on a per sector basis.

The Cyberhedge Cyber Governance Indexes are priced daily and demonstrate market-based proof that better cyber governance does outperform the market and vice versa. For more details, see our CBH ratings.

To learn more about the cyber governance rankings and other trends at the intersection of cyber and finance, check out the September Cyberhedge Research report at https://cyberhedge.com/wp-content/uploads/2019/09/Cyberhedge-Research-Volume-2-September-2019.pdf.

ABOUT CYBERHEDGE
Cyberhedge is a Financial Services firm specializing in Managing Technology Risk. We empower stakeholders and executives with in-depth financial evidence when it comes to reporting on technology risk. Our predictive models for cyber risk are back-tested against market data to justify model accuracy. Our outputs are constantly updated by analyzing over 1,000 technological, behavioral, and financial data points of each company in our database of 10,000 companies.

With offices in Washington, D.C., New York, and Luxembourg, Cyberhedge is backed by Paladin Capital Management LLC and the Luxembourg Future Fund, backed by the Société Nationale de Crédit et d'Investissement (SNCI) and the European Investment Fund (EIF). For more information, visit cyberhedge.com.

CONTACT
Katie Key
kkey@cyberhedge.com 
415-722-8600

Cision View original content:http://www.prnewswire.com/news-releases/cyberhedge-releases-new-cyber-governance-rankings-by-sector-300915198.html

SOURCE Cyberhedge


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