Advanced PE cybersecurity testing is an essential strategy for proactive risk mitigation.
Key takeaways
A robust cybersecurity strategy should include penetration and vulnerability testing.
Taking more advanced measures can help provide even greater threat mitigation.
When a large Fortune 500 client needed a comprehensive cybersecurity assessment, they engaged RSM US LLP for a clandestine operation. The top secret assignment? To infiltrate the fund's systems and uncover sensitive information within a 12-week window. RSM’s cybersecurity advisors exceeded expectations by achieving their objectives in under three weeks. Using sophisticated social engineering tactics, including creating a fake LinkedIn profile and deploying malware-laced USB devices, RSM successfully accessed critical information such as pre-patent data and employee records.
As this success story illustrates, cybersecurity testing isn't just a defensive measure; it's an essential strategy for proactive risk mitigation. Without regular testing of technology and people, vulnerabilities can go unnoticed until it's too late, leading to costly breaches and regulatory repercussions.
What is private equity cybersecurity testing?
Private equity cybersecurity testing involves evaluating the cybersecurity posture of companies owned or acquired by private equity firms to identify vulnerabilities and ensure compliance with industry standards and regulations. This testing helps private equity firms mitigate risks associated with cyberattacks and demonstrate their commitment to security, which can enhance the value of their portfolio companies.
Understanding the layers of private equity cybersecurity testing
Effective cybersecurity testing often requires a mix of services and tools designed to uncover a client organization’s vulnerabilities and assess its resilience. The first step is understanding the range of testing options available:
Vulnerability scanning
A broad, automated scan of systems to identify potential weaknesses. It's a cost-effective, noninvasive starting point for identifying security gaps across an organization’s digital landscape.
Penetration testing
A targeted, hands-on approach that simulates a real-world attack. Ethical hackers attempt to breach systems through the path of least resistance, providing a proof of concept that highlights exploitable weaknesses. This "rifle shot" method is essential for identifying critical security gaps.
Application testing
A method that evaluates vulnerabilities within software platforms that handle sensitive user data. With 24/7 global coverage, RSM’s team monitors a client’s critical business applications to protect them from cyberthreats.
Red team and purple team testing
Adversarial simulations that test an organization’s detection and response capabilities in real time. These exercises help refine defenses and ensure systems can withstand advanced threats.
Social engineering
This evaluates human vulnerabilities through simulated phishing attacks, smishing (SMS phishing) or even physical security breaches such as tailgating to gain unauthorized entry into a secure area. As RSM’s success story highlights, social engineering remains one of the most effective tactics for breaching defenses.
SWIPE TO VIEW
A call to action for private equity cybersecurity testing
For private equity firms, the stakes are high. Portfolio companies often hold valuable intellectual property and sensitive financial data that, if compromised, could result in devastating financial and reputational losses. Beyond supporting compliance, comprehensive cybersecurity testing helps uncover hidden vulnerabilities.
A robust private equity cybersecurity strategy should begin with vulnerability scans to assess the landscape, followed by penetration testing to validate the effectiveness of remediations. More advanced measures, like red team exercises, provide deeper assurance that potential threats can be identified and mitigated in real time.
While many firms offer cybersecurity testing, RSM combines comprehensive services with a deep understanding of the private equity landscape. RSM’s ability to scale testing across multiple portfolio companies and synthesize findings into actionable insights provides an invaluable advantage.
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