Category Archives: SHARES TAKEOVERS INVESTING FINANCE

Most investors scared by cyberattacks & consider blacklisting of affected companies

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Survey finds data breaches cause most investors to consider dumping affected companies

SAN FRANCISCO

A new survey published Wednesday found that roughly four-out-of-five investors consider blacklisting businesses that are attacked by hackers.

The report, conducted by consultancy firm KPMG, was compiled from a survey of 133 institutionalinvestors from around the globe. The responding investors manage more than $3 trillion in assets.

“Investors see data breaches as a threat to a company’s material value and feel discouraged in investing in a business that has had its sensitive information compromised,” Malcolm Marshall, the global head of KPMG’s cyber security practice, said in a release.

Digital security has become a growing issue for investors, regulators and the general public in the midst of a series of high profile cyberattacks on companies ranging from Sony Pictures Entertainment to health insurer Anthem. Some appear to be politically motivated and highly sophisticated, like the Sony attack, which has largely been attributed to North Korea. Others, such as the attacks on Anthem and retailer Target, result in the hackers absconding with millions of customer’s personal information.

“Following a number of high profile breaches, we are seeing global investors waking up to the issue of cyber security,” Marshall continued. “The ripple effect of this has seen investor appetite for cyber businesses increase, with the survey revealing that 86 percent of investors see it as a growth area.”

The survey found that the polled investors believed that less than half of the boards of the companies they invest in are adequately prepared for cyberattacks. The investors also believe that 43 percent of board members do not possess the appropriate skills and knowledge to manage risk in the Internet arena.

Essentially, the survey found that the damage to a company’s reputation caused by cyberattacks can be more destructive than the initial hacking. By jolting investors, data breaches can cause long-term pain.

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Henry Sapiecha

AIG Invests in K2 Intelligence to Deepen Cyber, Other Risk Mitigation Capabilities

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NEW YORK–(BUSINESS WIRE)–American International Group, Inc. (NYSE:AIG) today announced that it has acquired a minority stake in K2 Intelligence, an investigative consultancy. The companies have agreed to co-develop products and services that support AIG’s efforts to help clients mitigate and manage their cyber risk, and to explore opportunities in other key industry segments.

K2 Intelligence was founded in 2009 by Jeremy Kroll, K2 Intelligence’s CEO, and Jules Kroll, considered to be the originator of the modern corporate investigations industry. Based in New York, K2 Intelligence has approximately 300 employees with global operations in London, Madrid, and Tel Aviv. K2 Intelligence acts as advisor to governments, companies, boards, and individuals.

The company’s expertise centers on cyber investigations and defense, anti-money laundering and regulatory compliance, complex investigations and disputes, data analytics and visualization, and integrity monitoring and compliance. This offers many potential solutions for AIG clients as they manage risks associated with cybersecurity, construction projects, M&A transactions, global real estate transactions, liability exposures in higher education, and personal insurance needs.

K2 Intelligence’s cyber investigations and defense capabilities include intelligence, incident response, defense strategy, executive training, assessments, and due diligence, all of which rely on sophisticated web-based and human intelligence gathering techniques. These services complement AIG’s market leading CyberEdge risk mitigation and insurance products, which a growing number of customers, including some of the largest companies in the world, rely on to help manage the expanding threat of cyber attacks.

“Supporting our clients against cyber attacks means providing much more than insurance to transfer the risk,” said John Doyle, Chief Executive Officer, Commercial Insurance, AIG. “Partnering and aligning with cyber security experts like K2 Intelligence is a signal to the marketplace that AIG is committed to delivering the comprehensive measures and expertise needed to help mitigate and manage this growing and rapidly evolving threat.”

Jeremy Kroll, President and CEO, K2 Intelligence, said: “Cybersecurity must transition to a dynamic and proactive defense that employs investigative tools to collect and analyze information both from internal and external sources. AIG and K2 Intelligence share the same goal – to offer clients a holistic solution to help manage cyber risks that includes a full range of cyber defense, remediation, and response services. Working with AIG to deliver sophisticated threat intelligence techniques, we will provide clients with the information they need to help protect their enterprise and other stakeholders.”

American International Group, Inc. (AIG) is a leading global insurance organization serving customers in more than 100 countries and jurisdictions. AIG companies serve commercial, institutional, and individual customers through one of the most extensive worldwide property-casualty networks of any insurer. In addition, AIG companies are leading providers of life insurance and retirement services in the United States. AIG common stock is listed on the New York Stock Exchange and the Tokyo Stock Exchange.

Additional information about AIG can be found at www.aig.com | YouTube: www.youtube.com/aig | Twitter: @AIGinsurance | LinkedIn: http://www.linkedin.com/company/aig

AIG is the marketing name for the worldwide property-casualty, life and retirement, and general insurance operations of American International Group, Inc. For additional information, please visit our website at www.aig.com. All products and services are written or provided by subsidiaries or affiliates of American International Group, Inc. Products or services may not be available in all countries, and coverage is subject to actual policy language. Non-insurance products and services may be provided by independent third parties. Certain property-casualty coverages may be provided by a surplus lines insurer. Surplus lines insurers do not generally participate in state guaranty funds, and insureds are therefore not protected by such funds.

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Henry Sapiecha