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Technology & Data

ISS STOXX Gives Investors Cyber Risk Solution

The sustainable investment arm of index provider ISS STOXX has launched a holistic cyber risk solution to help investors identify and mitigate risks across their portfolios. The solution will enable them to understand the likelihood that a company could suffer a material cybersecurity incident within 12 months, analysing companies against 25 evaluation factors, as well as a disclosure-based assessment of cyber governance and management. The solution’s initial coverage includes the Russell 3000 and TSX60, but will expand to other global indices in due course. ISS STOXX cited the emergence of new regulations as having aided investors in securing more data – including the US Securities and Exchange Commission’s disclosure rules on cyber security risk management and incidents. ISS STOXX’s cyber risk solution also aims to complement company-disclosed data with forward-looking assessments to better gauge portfolio exposure. “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 US$5.4 billion,” said Lorraine Kelly, ISS STOXX’s Global Head of Investment Stewardship Solutions. “Our solution enables investors to identify and manage cyber risk across their investment portfolios, and to proactively engage with companies to understand cyber-breach risks.” 

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