NEW YORK (June 26, 2024) – The sustainable investment arm of ISS STOXX, today launched a new holistic Cyber Risk solution for investors, which helps them identify and manage cyber risk proactively across their investment portfolios.
Lorraine Kelly, ISS STOXX’s Global Head of Investment Stewardship Solutions, said: “Recent data indicates that publicly traded companies suffer an average decline of 7.5% in their stock values after a data breach, coupled with a mean market cap loss of $5.4 billion. Our new Cyber Risk solution enables investors to identify and help manage cyber risk across their investment portfolios, and to proactively engage with companies to understand cyber breach risks.”
New SEC rules on cyber security risk management and incident disclosure have created an opportunity for investors to gain access to more consistent data on this topic. However, there is an opportunity to complement company-disclosed data with forward-looking assessments to better gauge a portfolio’s cyber risk exposure.
The holistic new Cyber Risk solution enables investors to understand the relative likelihood that a company will suffer a material cybersecurity incident within the next 12 months and to compare portfolio companies on the basis of an empirical, technical assessment of cyber incident risk.
Further, the solution’s new issuer-level report provides investors with a comprehensive overview of a company’s technical cyber risk posture, including 25 new cyber risk evaluation factors as well as a disclosure-based assessment of cyber governance and management. This offers information regarding an organization’s security oversight and management, aiding investors in gaining clarity on the organization’s cyber governance concerns. The solution’s initial coverage includes the Russell 3000 and TSX60, with plans to expand to other key global indices in due course.
Key investor use cases for the new holistic solution include facilitating portfolio company cyber resilience assessments with forward-looking analysis of cyber security posture to mitigate potential financial and reputational risks; supporting security selection and informed investment decision making by enhancing investors’ cyber risk insights; and providing meaningful engagement opportunities with portfolio companies to mitigate risks correlated to breach event activity in a proactive manner. Other ISS STOXX offerings relevant to cyber risk include Governance QualityScore, the data-driven scoring and screening solution based on issuer governance disclosure, which supports the Cyber Risk investor solution’s governance section. We also offer a US Cyber Index, which identifies and tracks companies with low or negligible cyber-related risks. Further, as of January 2024, the Cyber Risk Score is also featured in ISS’s Benchmark Research & Voting reports.
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About ISS ESG
ISS ESG solutions enable investors to develop and integrate sustainable investing policies and practices, engage on sustainable investment issues, and monitor portfolio company practices through screening solutions. ISS ESG also provides climate data, analytics, and advisory services to help financial market participants understand, measure, and act on climate-related risks across all asset classes. In addition, ESG solutions cover corporate and country ESG research and ratings enabling its clients to identify material social and environmental risks and opportunities. For more information, please visit us at: www.iss-esg.com
About ISS STOXX
ISS STOXX GmbH, through its group companies, is a leading provider of comprehensive and data-centric research and technology solutions that help capital market participants identify investment opportunities, detect qualitative and quantitative portfolio company risks, and meet evolving regulatory requirements. With roots dating back to 1985, we today deliver world-class benchmark and custom indices across asset classes and geographies and serve as a premier source of independent corporate governance, sustainability, cyber risk, and fund intelligence research, data, and related offerings. Our products and services give clients the scale and leverage they need to grow their business more effectively and efficiently. ISS STOXX, which is majority owned by Deutsche Börse Group, is comprised of more than 3,400 professionals operating across 33 global locations in 19 countries. Its approximately 6,400 clients include many of the world’s leading institutional investors who turn to ISS STOXX for its objective and varied offerings, as well as companies focused on ESG, cyber, and governance risk mitigation as a shareholder value enhancing measure. Clients rely on ISS STOXX’s expertise to help them make informed decisions to benefit their stakeholders.
Media Contact:
Sarah Ball
Executive Director, Communications
press@iss-stoxx.com
ISS STOXX Launches Holistic Cyber Risk Solution for Investors
NEW YORK (June 26, 2024) – The sustainable investment arm of ISS STOXX, today launched a new holistic Cyber Risk solution for investors, which helps them identify and manage cyber risk proactively across their investment portfolios.
Lorraine Kelly, ISS STOXX’s Global Head of Investment Stewardship Solutions, said: “Recent data indicates that publicly traded companies suffer an average decline of 7.5% in their stock values after a data breach, coupled with a mean market cap loss of $5.4 billion. Our new Cyber Risk solution enables investors to identify and help manage cyber risk across their investment portfolios, and to proactively engage with companies to understand cyber breach risks.”
New SEC rules on cyber security risk management and incident disclosure have created an opportunity for investors to gain access to more consistent data on this topic. However, there is an opportunity to complement company-disclosed data with forward-looking assessments to better gauge a portfolio’s cyber risk exposure.
The holistic new Cyber Risk solution enables investors to understand the relative likelihood that a company will suffer a material cybersecurity incident within the next 12 months and to compare portfolio companies on the basis of an empirical, technical assessment of cyber incident risk.
Further, the solution’s new issuer-level report provides investors with a comprehensive overview of a company’s technical cyber risk posture, including 25 new cyber risk evaluation factors as well as a disclosure-based assessment of cyber governance and management. This offers information regarding an organization’s security oversight and management, aiding investors in gaining clarity on the organization’s cyber governance concerns. The solution’s initial coverage includes the Russell 3000 and TSX60, with plans to expand to other key global indices in due course.
Key investor use cases for the new holistic solution include facilitating portfolio company cyber resilience assessments with forward-looking analysis of cyber security posture to mitigate potential financial and reputational risks; supporting security selection and informed investment decision making by enhancing investors’ cyber risk insights; and providing meaningful engagement opportunities with portfolio companies to mitigate risks correlated to breach event activity in a proactive manner. Other ISS STOXX offerings relevant to cyber risk include Governance QualityScore, the data-driven scoring and screening solution based on issuer governance disclosure, which supports the Cyber Risk investor solution’s governance section. We also offer a US Cyber Index, which identifies and tracks companies with low or negligible cyber-related risks. Further, as of January 2024, the Cyber Risk Score is also featured in ISS’s Benchmark Research & Voting reports.
###
About ISS ESG
ISS ESG solutions enable investors to develop and integrate sustainable investing policies and practices, engage on sustainable investment issues, and monitor portfolio company practices through screening solutions. ISS ESG also provides climate data, analytics, and advisory services to help financial market participants understand, measure, and act on climate-related risks across all asset classes. In addition, ESG solutions cover corporate and country ESG research and ratings enabling its clients to identify material social and environmental risks and opportunities. For more information, please visit us at: www.iss-esg.com
About ISS STOXX
ISS STOXX GmbH, through its group companies, is a leading provider of comprehensive and data-centric research and technology solutions that help capital market participants identify investment opportunities, detect qualitative and quantitative portfolio company risks, and meet evolving regulatory requirements. With roots dating back to 1985, we today deliver world-class benchmark and custom indices across asset classes and geographies and serve as a premier source of independent corporate governance, sustainability, cyber risk, and fund intelligence research, data, and related offerings. Our products and services give clients the scale and leverage they need to grow their business more effectively and efficiently. ISS STOXX, which is majority owned by Deutsche Börse Group, is comprised of more than 3,400 professionals operating across 33 global locations in 19 countries. Its approximately 6,400 clients include many of the world’s leading institutional investors who turn to ISS STOXX for its objective and varied offerings, as well as companies focused on ESG, cyber, and governance risk mitigation as a shareholder value enhancing measure. Clients rely on ISS STOXX’s expertise to help them make informed decisions to benefit their stakeholders.
Media Contact:
Sarah Ball
Executive Director, Communications
press@iss-stoxx.com
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