Managing Insider Risk During M&As
In an April 2023 white paper, Managing Insider Risk During Mergers and Acquisitions, INSA argues that despite potential catastrophic consequences, many corporations do not prioritize personnel risk indicators or insider risk practices during the Mergers and Acquisition (M&A) process. As the rate of M&A deals continues to increase in the post-pandemic environment, it is critical for companies to consider the potential to onboard risk through this threat vector.
Developed by INSA’s Insider Threat Subcommittee, the paper finds that corporate M&As create significant security risks and vulnerabilities for both the buyer and seller. Large amounts of sensitive information are exchanged outside each company’s normal security construct; changes in corporate culture and a climate of uncertainty can exacerbate employee anxieties; and the integration of new technologies may undermine a company’s network defenses. Yet typically, only c-suite executives and board members are involved in potential merger discussions.
The paper provides an overview of common insider threat risks, provides case studies of M&As impacted by insider threats, and offers recommendations on the most impactful actions companies can take to reduce risks during the M&A process.
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