The essential guide to building a robust cybersecurity oversight program

June 27, 2024

In the rapidly evolving digital landscape, traditional methods of portfolio oversight are increasingly inadequate against the mounting cyber threats. Recognising this shift, a strategic, programmatic approach to cybersecurity has become crucial for safeguarding investments and enhancing company valuations.

ACA Group (ACA), a leader in governance, risk, and compliance advisory in financial services, recently released a new white paper around how firms can build a value-generating cybersecurity portfolio oversight program.

Starting such a program can be daunting, yet it’s vital for firms seeking to protect and grow their assets. The white paper recently outlined 13 key elements essential for a robust cybersecurity oversight program. These elements promise not only to bolster cybersecurity but also to augment the overall value of investments.

These 13 components are grouped under three main themes:

Managing Risks: This involves setting a security baseline, employing a consistent risk framework, performing regular risk assessments, and maintaining readiness for emerging threats.
Creating Value: Strategies here focus on improving valuations through economies of scale, providing portfolio companies with critical insights, and securing executive support.
Governance: The aim is to ensure accountability, engage with Limited Partners (LPs), simplify reporting procedures, right-size oversight measures, and integrate cybersecurity efforts with broader operational enhancements.

Additionally, the introduction of ACA’s new product, ACA Vantage for Cyber, marks a significant advancement in portfolio oversight solutions. Powered by ACA Aponix, this service integrates esteemed advisory support with the pioneering regulatory technology of ComplianceAlpha and the unique “RealRisk” risk assessment methodology.

ACA Vantage for Cyber is designed to align with investor needs, drawing on extensive experience from over 100 project management firms. This tool not only saves time by providing instant access to assessment results and remediation efforts but also keeps stakeholders well-informed and efficiently directs resources to where they are most needed. This comprehensive tool allows firms to discern and manage the cybersecurity risks associated with their investments, from the fund level down to the cyber capabilities of individual portfolio companies.

Download the white paper here.

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