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Corporate Finance Faculty

Cyber Security in Corporate Finance

The flow of sensitive information and the number of parties typically interacting in M&A, raising finance or a restructuring can increase the cyber security risk of all those involved. This guide aims to help organisations manage cyber risk and improve its governance, setting out good practice within the context of a corporate finance transaction.
Read the guide
The second edition of the Corporate Finance Faculty's Cyber Security in Corporate Finance. Download here

Cyber Security in Corporate Finance provides insights on cyber risks, how to guard against cyber attacks and how to respond to cyber breaches during a deal process. It suggests specific steps that can be taken during the typical phases in the acquisition of a business.

There is more data and information than ever before, and perpetrators of a cyber attack can be motivated by a variety of factors, including financial gain, espionage, hacktivism or to seek political influence.

When it comes to corporate finance transactions – public or private M&A, equity investment, or a debt raise – managing risk is a key part of the process.

Three aspects of cyber security apply to corporate finance transactions:

  • the risk pre-deal;
  • the risk during the period of the transaction; and
  • the risk to the acquirer of the cyber security practices and controls (or lack thereof) that they are bringing into their business post-deal, or investing into.

This guide aims to help businesses and their boards – with expertise from their advisers – tackle these risks. It includes latest best practice and considerations for preventing cyber security breaches and for good cyber governance.

It was written by an ICAEW-led taskforce with support from the National Cyber Security Centre and comprising a broad range of parties involved in corporate finance transactions and cyber security. This includes the Association of Corporate Treasurers, the British Private Equity and Venture Capital Association, the London Stock Exchange, The Law Society, The Takeover Panel, UK Finance and professional services firms BDO, Deloitte, EY, Grant Thornton, KPMG and PwC.

Launch event

On 31 January the Corporate Finance Faculty held an event to mark the launch of our new guide, Cyber Security in Corporate Finance. We were joined by leaders of the UK's corporate finance community to discuss the critical importance of collaboration for managing the threat of cyber-attacks during transactions.

Cyber security in corporate finance