What to do after Completing a Cyber Health Check on Your Portfolio Companies

Introduction 

Completing a cyber health check is a critical step in protecting the operations of your Private Equity (PE) firm and Portfolio Companies (PortCos). While the assessment highlights vulnerabilities and provides clarity on your cyber risk level, its true value lies in how you act on these findings.  

By acting on the insights gained, you can strengthen your security posture in a way that is both robust and cost-effective. Scalable solutions not only align with stakeholder expectations but also protect your investments. 

Swift, strategic action is essential. Not just to mitigate risk, but to also show your firm’s commitment to cyber resilience. This article outlines the essential next steps after a cyber health check, offering practical advice on reducing risks, optimising cyber security spending and establishing a proactive, continuously improving strategy.  

Essential Do’s after a Cyber Health Check 

Prioritise High-Risk Findings 

Focus on the most critical vulnerabilities first. These are the issues that pose the greatest risk to your PE portfolio and overall cyber resilience. By working with independent cyber experts and using data-driven insights, you can quickly identify and tackle the highest-risk issues. Focusing on these risks first ensures that you improve your security posture where it matters most, offering strong protection for your investments and demonstrating your commitment to proactive risk management.  

Plan Remediation  

Creating a clear remediation strategy is essential to effectively addressing the prioritised vulnerabilities identified. This strategy should define specific tasks, needed resources, budgets and deadlines. Consider including the following actions; 

• Allocate Resources: Ensure necessary resources (people, tools, budget) are in place 

• Assign Responsibilities: Assign clear owners for each task including yourself, team members, IT leads and cyber advisors (if applicable) 

• Set Deadlines: Establish realistic timelines and track progress with clear deadlines 

• Monitor: Regularly review progress and keep stakeholders informed 

• Document: Maintain detailed records of activities to measure effectiveness  

Manage Acceptable Risk 

Not all risks carry the same weight. Some are more tolerable than others, depending on the likelihood and potential impact. Have open discussions internally and with your cyber advisor to gain a well-rounded understanding of the business and technical trade-offs involved in accepting certain risks. 

By defining these acceptable risks, you can ensure they stay within manageable boundaries. Continuous monitoring is key to making sure these risks stay within acceptable thresholds and don’t escalate into more significant threats.  

Standardise Reporting 

Standardised reporting ensures consistent and clear communication of findings and action plans across your firm and PortCos. This approach improves transparency and accountability, making it easier to manage and compare risks. Maintaining standardised reports ensures you’re always prepared for stakeholder reviews and reinforces your commitment to robust cyber security practices.  

Implement Employee Training Programmes 

Regular training is essential to ensure your employees stay informed about the latest cyber threats and best practices. It’s not enough to simply promote security practices; you need to ensure your team can implement them effectively in their daily routines. Encourage actions like creating strong passwords, enabling multi-factor authentication (MFA) and recognising common threats like phishing emails. Integrating these practices into daily routines minimises the impact of human error, strengthening your firm’s overall security.  

Regularly Review and Update 

Cyber security is an ongoing effort. To maintain a strong security posture, it’s essential to continuously monitor the cyber threat landscape, as well as relevant frameworks and regulations. This includes both cyber-specific standards like NIST and Cyber Essentials and regulatory requirements such as DORA. Regularly reassessing the vulnerabilities across your PE portfolio and adjusting your strategy accordingly is key to staying resilient.  

How Often Should You Conduct a Cyber Health Check? 

The frequency of a cyber health check depends on your firm’s size, the complexity of its systems and the dynamic nature of its industry. It’s recommended that a cyber health check be conducted at least annually. However, if your firm is undergoing significant changes, such as mergers, acquisitions, or a shift in operational focus, it’s advisable to conduct a check more often. Additionally, whenever there are major updates to cyber security frameworks or regulations, it’s important to reassess your cyber posture to ensure compliance and alignment.  

Essential Don’t after a Cyber Health Check 

Do Nothing 

Failing to act on the findings of a cyber health check leaves identified vulnerabilities unaddressed, which could lead to data breaches, financial losses, reputational harm and legal consequences. This inaction undermines the value of the health check and weakens your firm’s security posture, exposing it to threats.  Promptly addressing the findings is essential to protecting your investments. 

Delay Remediation Efforts 

Waiting too long to act on identified vulnerabilities can increase the window of opportunity for attackers. Remediation efforts should be swift and prioritised based on the severity of the findings. Delays can lead to higher costs, greater damage and more complex recovery processes down the line.  

Avoid Complacency 

A positive cyber health check can sometimes lead to complacency and a false sense of security. Cyber threats are constantly evolving, with attackers becoming more sophisticated. At the same time, the growth and maturity of your firm brings new and changing security needs. It’s essential to remember that a health check is not a one-time-fix but a part of an ongoing process, ensuring you stay ahead of emerging risks. 

Even after a successful assessment, it’s crucial to continue making progress with your infrastructure, data and user controls. Overconfidence can lead to poor monitoring, slow responses to incidents and increased vulnerability to cyber threats. You need to stay proactive to mitigate potential damage from future breaches.  

Failure to Tailor Cyber Strategies 

Never overlook the unique operational and technological environment of your PortCos. Tailoring action plans to these specific contexts is key for effective cyber risk management. By aligning your cyber strategy with the needs of each PortCo, you can ensure more accurate risk mitigation and make better use of resources. This ultimately helps you achieve the best possible cyber posture for your firm and portfolios.  

Neglect Collaboration 

Effective cyber security depends on strong collaboration between IT, management and staff. Without this collective effort, gaps can appear in your defences, increasing exposure to cyber threats. It’s crucial to encourage a culture that encourages the sharing of cyber intelligence and expertise within your PortCos. This approach ensures a stronger, more unified defence against potential cyberattacks.  

Recommended Next Steps 

Taking action after a cyber health check isn’t optional. Without it, your firm and investments are left vulnerable, putting your entire portfolio at risk and threatening your bottom line.  

Consider partnering with an independent cyber advisor, such as OneCollab, to take your cyber security efforts to the next level. Cyber security can be complex, but with expert support, it becomes easier to understand, implement, and optimise. OneCollab provides clear, actionable guidance, including a tailored remediation plan to strengthen your defences. 

Take the next step in protecting your firm. Contact OneCollab today for a comprehensive health check and expert guidance.