How to evaluate a company's cybersecurity

Investors should examine a company's approach to cybersecurity carefully, says Joe Nocera, an advisory principal in the financial-services division of PricewaterhouseCoopers. Besides the usual due diligence, he advises investors to review how a company deals with cybersecurity disclosure, whether there is an executive who is dedicated to cybersecurity and whether a company can handle the cost of a breach. "Look for evidence of their response capabilities, the number of times they have exercised their response from a testing perspective," he says.

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