Page 152 - Cyber Defense eMagazine RSAC Special Edition 2025

Human factors remain one of the most significant cybersecurity risks. Evaluating employee access to
and handling of sensitive information is critical to preventing insider threats and unauthorized disclosures.
Key areas of assessment include:

• Identity and Access Management (IAM): Determine whether the company implements
multifactor authentication (MFA), role-based access controls (RBAC) and single sign-on (SSO)
mechanisms.
• User Privilege Audits: Conduct audits of accounts to identify excessive permissions and ensure
proper access governance.
• Security Training and Policies: Evaluate the company’s cybersecurity training programs,
phishing simulations and employee adherence to security policies.
• Employee Exits: Analyze processes to ensure that departing employees no longer have access
to sensitive systems and data.
• Third-Party Contractor Access: Assess security policies for contractors and vendors who may
have temporary access to the company’s infrastructure and ensure that third parties are subject
to written contracts that include proper acknowledgements and indemnities.
• Remote Work Security Measures: Assess how the company secures remote access, including
VPN usage, endpoint security controls and mobile device management.

Conclusion

Cybersecurity due diligence in M&A transactions is no longer optional or limited to target companies
engaged in specific industries. It is now a critical part of the deal process across deal sizes, industries
and geographic locations. By conducting assessments of security frameworks, data management
policies, emerging technologies and employee access controls, organizations can mitigate cybersecurity
risks before finalizing an acquisition. A proactive approach to cybersecurity due diligence minimizes
exposure to known and unknown cyber threats and data practices noncompliance.

Furthermore, organizations should consider post-merger integration strategies to maintain cybersecurity
continuity. Establishing a unified security framework, harmonizing policies and continuously monitoring
for new threats will help ensure long-term protection and operational stability. By prioritizing cybersecurity
due diligence, M&A stakeholders can transform cybersecurity risks into strategic advantages, better
positioning themselves for a more secure target company and successful acquisition while minimizing
potential post-closing issues.

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