Incentivizing Secure and Responsible Innovation

The Centre for Cybersecurity is examining a standard approach for investors to assess, monitor, and improve the cybersecurity of their target or portfolio investment companies in order to improve understanding of post-investment roles and responsibilities of investors in monitoring and helping grow portfolio companies' cybersecurity capabilities. Cybersecurity is increasingly a concern in evaluating the long-term sustainability of a company or technology. In the coming years, the ability of firms to attract talent, customers, and credit will be determined significantly by managers’ ability to meet their responsibilities for cybersecurity. The investment community needs parameters and viable benchmarks to evaluate whether a company and its practices are cyber secure. The lack of cybersecurity due care standard to evaluate and monitor whether target investments are exercising appropriate cybersecurity practices is an obstacle for investors to influence better security within their investment portfolio and ensure companies are prepared for business in the Fourth Industrial Revolution.