The high stakes of cybersecurity

Authored by Isabelle Mast and Greg Heywood, this piece argues that cybersecurity has become a core financial risk, with a single attack capable of wiping out a year’s profit and exposing weaknesses well beyond traditional high‑risk sectors. The authors show how AI is amplifying both the speed and sophistication of threats while also enabling faster detection and response for companies that invest in advanced defences.

They outline a proprietary framework that evaluates governance, culture, third‑party risk, controls and external assurance to distinguish genuinely resilient businesses from those merely spending on tools. Case studies from portfolio holdings highlight how rigorous standards can influence vendor selection, M&A decisions and early preparation for post‑quantum cryptography.

For investors, the message is twofold: underinvestment in cyber resilience is an increasingly material downside risk, while leading cybersecurity platforms and data‑rich franchises may be positioned to benefit from structurally rising security spend.