Why cyber risk matters

Automated cyber risk assessments are essential in today’s finance world

Cyber risks directly impact valuations, deal structures, and financing decisions.

  • In M&A transactions, they can trigger price cuts or even kill a deal.
  • In private equity portfolios, they put investments and buy-&-build strategies at risk.
  • For banks and lenders, they raise default probabilities and intensify regulatory pressure (SEC, OCC, NYDFS Cyber Regulation, FCA/PRA).

Well-known cases like Equifax, CrowdStrike, or CDK Global have shown one thing clearly:

A single cyber incident can cost billions and derail entire deals.

The cysmo® platform is the leading provider of automated, precise cyber risk assessments – purpose-built for the financial industry, ISO-certified, made in Germany, and already the market standard in cyber insurance.

M&A | Cyber Due Diligence

In M&A transactions, cyber due diligence often determines whether a deal succeeds or fails. The cysmo® platform delivers automated cyber risk assessments in real time – fact-based, precise, and fully non-intrusive.

An M&A deal without cyber due diligence is like buying a house at night: it may look solid from the outside – but only daylight reveals cracks in the foundation and leaking windows.

  • Technical debt from unpatched systems
  • “Paper security” without true governance
  • Shadow IT and redundant domains/servers
  • Lack of cybersecurity awareness at the C-level
  • Previously leaked credentials exposed on the darknet
  • Immediate first impression (“cyber hygiene”)
  • Clear overview of potential red flags (material threats)
  • Assessment of all relevant risks
  • Actionable remediation plans including run-rate impact
  • Speed: results in under 1 minute – no waiting for VDR or IT disclosure
  • Accuracy: zero false positives, directly usable in negotiations
  • Scope: beyond the main domain – incl. IP ranges, subsidiaries, additional assets
  • Rules engine: direct overview of key criteria – configurable (thumbs up/down for rapid screening, deep dives into open ports, outdated software, or darknet scores)
  • Automated monitoring: ratings and alerts always in real time, never outdated – while historical breach events remain visible
  • Integration & exports: results instantly shareable – PDF, PPT, CSV, JSON or via API into existing workflows and deal rooms
  • Financial-loss estimation: translate cyber risks directly into financial metrics
  • Deal impact: quantify how vulnerabilities influence valuations and warranties
  • Benchmarking: compare targets consistently across industries and geographies
  • Negotiation leverage: create a “shock effect” for buyers or sellers – moving discussions from gut feeling to hard facts

Private Equity | Portfolio Monitoring

In PE portfolios, cyber risks are constantly evolving. The cysmo® platform provides automated transparency across all holdings – fast, comparable, and with zero additional effort. Supply chain dependencies can also be included before they turn into systemic risks for the entire fund.

“A PE portfolio without cyber monitoring is like a fleet of ships at sea without radar: as long as the weather is calm, everything looks safe – but the storm can hit any vessel at any time.”

  • PortCos differ widely in cyber maturity and IT security
  • Attack surfaces, vulnerabilities, and leaks remain unconnected
  • Third parties and supply chains introduce uncontrolled risks
  • Particularly critical in buy-&-build strategies: lack of overall transparency
  • Ongoing visibility into the cyber posture of all portfolio companies
  • An early-warning system instead of gut feel: real-time alerts, no noise
  • Clustering: which PortCos are stable, which require immediate action
  • Consideration of growing regulatory requirements (SEC, FCA/PRA, NYDFS Cyber Reg, NIS2/DORA in Europe)
  • Automated rescoring: portfolio scans on a monthly or quarterly basis
  • Early warnings: alerts only when material – no alert fatigue
  • Unified view: across all PortCos, including international holdings
  • Group view: subsidiaries and corporate structures made transparent
  • Rules engine: quick thumbs up/down rating or detailed deep dives (open ports, outdated software, darknet scores)
  • Monitoring: always real-time, no outdated snapshots – historical breach events remain traceable
  • Integration & exports: results seamlessly usable – PDF, PPT, CSV, JSON, or API integration into PE controlling, risk, and GP reporting systems
  • Cyber incidents can directly affect reserves, cash flows, and valuations
  • Early transparency prevents value erosion in buy-&-build strategies
  • Underperforming PortCos can be stabilized, protecting the overall fund
  • Financial-loss estimation: quantify risks in financial terms per PortCo or portfolio-wide
  • Investor story: credible cyber data strengthen LP communications and enhance exit narratives

Banks | Credit, Compliance & Beyond

Cyber risks have become a central factor in modern banking. The cysmo® platform delivers automated cyber risk assessments in real time – as an additional risk dimension alongside traditional financial metrics.

This gives banks transparency across lending, portfolio monitoring, compliance & regulation, export finance, structured deals, and self-service portals.

Cyber risks in banking are like driving through heavy fog: you keep moving forward, but the risk of collision grows with every mile.

  • Complements traditional credit scoring
  • Reduces default risk with cyber ratings
  • Early-warning system for corporate borrowers with deteriorating security posture
  • Unified view across entire loan portfolios
  • Clustering: resilient vs. high-risk exposures
  • Visibility into supply chain dependencies within portfolios
  • Support for frameworks such as SEC, OCC, NYDFS Cyber Reg, FCA/PRA, as well as NIS2/DORA in Europe
  • Standardized reports for regulatory documentation
  • Transparent evidence for internal audit and supervisory authorities
  • Export & international finance: uncover risks in third parties and emerging markets
  • Structured finance & club deals: include cyber risks in syndicated transactions
  • Customer retention & self-service: integrate cyber ratings into corporate banking portals as a value-added service
  • Automated assessments: results in under 1 minute for any company
  • Monitoring & alerts: always real-time, never outdated – historical breaches remain visible
  • Rules engine: fast thumbs-up/down screening or deep dives (e.g. open ports, mail configuration, darknet scores)
  • Integration: results available as PDF, PPT, CSV, JSON or directly via API into credit and risk systems
  • Portfolio view: automated oversight of loan and sector portfolios
  • Flexibility: include subsidiaries, IP ranges, and critical third parties
Outside-in scanning software

cysmo® platform