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How Cybersecurity Practices Impact Your Company Valuation

Posted: July 30, 2019 to Cybersecurity.

Tags: Compliance, Data Breach, Malware

According to a study by Ocean Tomo, intangible assets have emerged as the leading determinant of a company’s value.  From 1975 to 2025, the value of tangible assets dropped from 83% down to 16% while the intangibles went from 17% to 84%.   A company’s value derives from its tangible and intangible assets. Intangible assets include not only patents, trademarks and copyrights but also a company’s reputation and brand value (UBS, 2019). Cybersecurity factors into the environmental, social , and governance aspects of company valuation.  Supporting economic growth by preserving the benefits of digitization can significantly contribute to SDG (UBS, 2019). Service companies which take payments or deal with large numbers of customers are particularly responsible for keeping the personal data safe under the GDPR rules. “Cybersecurity ranks as one of the top three concerns for investors and business owners, and the number of cybersecurity incidents is rising by 20%-30% per year,” states UBS in a recent publication (found here), “Globally, the average total cost of a data breach in 2018 stood at USD 3.86 million.”  Companies that will thrive and lead the industry will be those that invest in cybersecurity and employee training related to information security and privacy.

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About the Author

Craig Petronella, CEO and Founder of Petronella Technology Group
CEO, Founder & AI Architect, Petronella Technology Group

Craig Petronella founded Petronella Technology Group in 2002 and has spent more than 30 years working at the intersection of cybersecurity, AI, compliance, and digital forensics. He holds the CMMC Registered Practitioner credential (RP-1372) issued by the Cyber AB, is an NC Licensed Digital Forensics Examiner (License #604180-DFE), and completed MIT Professional Education programs in AI, Blockchain, and Cybersecurity. Craig also holds CompTIA Security+, CCNA, and Hyperledger certifications.

He is an Amazon #1 Best-Selling Author of 15+ books on cybersecurity and compliance, host of the Encrypted Ambition podcast (95+ episodes on Apple Podcasts, Spotify, and Amazon), and a cybersecurity keynote speaker with 200+ engagements at conferences, law firms, and corporate boardrooms. Craig serves as Contributing Editor for Cybersecurity at NC Triangle Attorney at Law Magazine and is a guest lecturer at NCCU School of Law. He has served as a digital forensics expert witness in federal and state court cases involving cybercrime, cryptocurrency fraud, SIM-swap attacks, and data breaches.

Under his leadership, Petronella Technology Group has served 2,500+ clients, maintained a zero-breach record among compliant clients, earned a BBB A+ rating every year since 2003, and been featured as a cybersecurity authority on CBS, ABC, NBC, FOX, and WRAL. The company leverages SOC 2 Type II certified platforms and specializes in AI implementation, managed cybersecurity, CMMC/HIPAA/SOC 2 compliance, and digital forensics for businesses across the United States.

CMMC-RP NC Licensed DFE MIT Certified CompTIA Security+ Expert Witness 15+ Books
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