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Resilience Unveils Innovative Cyber Risk Program for Private Equity Firms

In a significant move, Resilience, a leader in providing cyber risk solutions, has launched a groundbreaking Private Equity Cyber Risk Program aimed at revolutionizing how private equity (PE) firms navigate cyber threats across their investment portfolios. This innovative program integrates the cutting-edge Arc platform—a cyber risk management tool designed specifically for complex organizational structures—with tailored insurance solutions to address the unique challenges faced by private equity firms throughout the investment lifecycle.

Understanding the Challenges

Private equity firms operate in a distinctly different risk landscape compared to traditional enterprises. Security executives, such as Chief Information Security Officers (CISOs), are accountable for multiple portfolio companies, each with its own systems, security controls, and reporting frameworks. The complexity increases as these firms manage a variety of acquisitions, divestitures, and other intricate arrangements that make oversight challenging. This often leads to a fragmented view of security posture, where assessments are limited to singular entities without a consolidated overview of cyber risk across the board.

Maria Long, Resilience’s Chief Underwriting Officer, emphasizes the need for a tailored approach: “Private equity risk transfer needs expose structural gaps in standard cyber policies. We’ve engineered our underwriting approach to directly tackle these issues, ensuring immediate coverage for new portfolio companies and clarifying liability across transitional agreements.”

Building Comprehensive Coverage

The Private Equity Cyber Risk Program is designed to provide coverage through every phase of a deal lifecycle:

• - At Acquisition: Immediate and retroactive coverage is provided for newly acquired companies. This includes support for Transition Service Agreements (TSAs) that clarify liability, and the Arc platform enhances due diligence with expedited cyber risk evaluations and continuous monitoring throughout the onboarding process.
• - During the Hold Period: Coverage is extended for voluntary shutdowns, service interruptions, and includes a 270-day restoration period. Arc offers a centralized dashboard to help PE firms prioritize investments, validate security programs, and monitor exposures in real-time.
• - At Exit: As firms prepare to exit their investments, carefully defined control groups and vicarious liability coverage can help mitigate exposure risks and protect company valuation. The Arc platform generates detailed reports that aid in validating security maturity during exit negotiations.

This structured approach enables private equity firms to gain holistic insights into how cyber risk is interconnected across their portfolio, allowing them to make informed security decisions and enhance overall risk management strategies.

Enhancing Visibility and Strategic Management

Long outlines the transformative impact of this program, stating, “CISOs in private equity are tasked with overseeing dozens of organizations, making it essential for their security strategies to be reflective of this complexity. Previously, they lacked a unified view of how risk from one portfolio company could affect others. Our program with Arc changes that by providing a strategic overview and actionable insights to minimize risk effectively.”

By combining the capabilities of the Arc platform with integrated insurance solutions, Resilience positions private equity firms to not only safeguard but also enhance their portfolio values in a challenging threat landscape.

Vishaal 'V8' Hariprasad, CEO and Co-Founder of Resilience, adds, “Private equity has traditionally operated with tools meant for singular organizations. We recognized this critical gap and created this program to equip firms with the visibility and alignment needed for effective risk management.”

About Resilience

Founded by seasoned experts from elite military and intelligence backgrounds, Resilience is dedicated to enhancing cyber resilience and minimizing organizational losses. The company’s unique blend of risk quantification software, expert cybersecurity advice, and top-tier insurance solutions distinguishes it as a pioneering force in the cyber risk domain. Resilience is backed by notable tech investment firms and has a global presence with offices across major cities.

For more details on the Private Equity Cyber Risk Program, interested parties are encouraged to visit Resilience’s official website. As the cyber landscape continues to evolve, Resilience stands at the forefront, ready to empower private equity firms with the tools they need to navigate this complex risk environment successfully.