Those looking for capital should add a line item to their due-diligence preparation: cybersecurity. Disclosing succession plans and payroll standards is no longer enough to satisfy the demands of finicky cross-border investors. One common tactic to deflect investor criticism is outsourcing requirements to third-party cybersecurity firms. That approach may signal that you are risk-savvy, but it may not properly address lingering corporate vulnerabilities. Cybersecurity vendors can even undermine trust within an organization. Young companies may find that the best use of limited resources is simply employee education on cybersecurity issues. In our work, we remind entrepreneurs and founders that many investor objections can be managed proactively. There is no need to be steamrolled on this one. ■
Learn more at the BBC.
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