Cyber Security: The Key to a Successful Carve-Out

For Swiss companies with international subsidiaries in particular, cyber security is becoming a key factor for success, especially in complex restructurings - such as the establishment of subsidiaries, carve-outs or the establishment of national legal entities.

Global uncertainties, geopolitical tensions and volatile markets are increasing the pressure on companies to act quickly and flexibly without neglecting security. Added to this are growing dependencies on cloud providers, rising operating costs and tightening regulatory requirements.

Cyber criminals specifically use phases of change to attack companies at their most vulnerable points. That is why it is not enough to view cyber security as a static checklist. Companies need to see security structures as a dynamic element that is constantly being evaluated and optimized. This article sheds light on the challenges, identifies key risk factors and provides practical recommendations for a resilient and future-proof cyber security strategy.

Economic challenges and their impact on cyber security

Restructuring is often triggered by economic challenges such as stagnant growth, cost pressures, disruptive technologies, regulatory changes or geopolitical tensions. Companies are faced with the challenge of increasing operational efficiency without compromising their digital security. The following points are particularly critical:

• Time and cost pressures: security checks are often shortened or even skipped, creating new attack surfaces.
• Changing responsibilities: High employee turnover and the involvement of external service providers increase the risk of insider threats and data loss.
• Legacy systems: Outdated IT structures cannot be easily integrated into modern security architectures, leading to compatibility issues and new vulnerabilities.
• Cloud dependencies: An exclusive commitment to a single cloud provider increases the risk of financial and operational dependencies, especially in geopolitically uncertain times.

Companies should see restructuring not only as an economic necessity, but also as a strategic opportunity to take their cyber security to a new level. Now is the time to close security gaps, modernize outdated processes and invest in future-proof technologies. An independent view from the outside creates clarity and provides concrete pointers for targeted improvements.

An independent cyber security assessment is the right starting point for a resilient security architecture. This allows you to identify specific weaknesses, prioritize measures and create a sound basis for sustainable security in times of change.

Establishment of subsidiaries

Establishing subsidiaries in new markets offers economic opportunities, but also brings with it numerous cyber security challenges.

• Data protection and compliance: International data protection laws such as the GDPR or local privacy regulations as well as local regulations must be taken into account.
• Risk management: Country-specific threats should be analyzed and security strategies adapted before the company is founded.
• Cultural differences: Security awareness varies greatly, so local training programs are essential.
• Technical integration: Subsidiaries require secure interfaces to the parent company in order to avoid system breaches and security gaps.

Implementation of carve-outs

Carve-outs are highly complex processes in which company divisions are separated organizationally and technically. Cyber security must be considered from the outset.

• Data integrity: Secure migration processes with real-time monitoring are essential.
• Transition management: Cyber security measures must be clearly defined at every stage.
• Communication: Security mechanisms to protect sensitive information are crucial.
• Access controls: Authorizations should be adjusted at every stage.

Establishment of national legal entities

Regulatory requirements and country-specific cyber threats make the establishment of national legal entities particularly complex.

• Compliance with local regulations: Compliance analyses help to identify legal differences.
• Protection against local threats: Utilizing regional threat intelligence sources is essential.
• Scalable IT infrastructure: Flexible systems must comply with security standards.

Consolidated best practices and recommendations

In order to protect company assets and sensitive information, basic security measures should be established that include both preventive and reactive protection mechanisms.

• Data encryption: End-to-end encryption for all critical data.
• Regular risk assessments: Semi-annual audits for early threat detection.
• Training courses: Mandatory cyber security training for all employees.
• Incident response plan: Instructions for detecting and responding to threats and incidents.
• Business continuity management: Business continuity plans with regular test runs.

Modernization of legacy systems

Outdated systems pose a significant security risk. Modernizing them requires a strategic approach to eliminate vulnerabilities while ensuring operational continuity.

• Gradual replacement of old systems.
• Automated updates to minimize risk.
• Documentation of all systems with risk assessment.
  

Security measures for cloud-native environments

With the increasing shift of business processes to the cloud, it is crucial to develop security strategies that ensure data integrity, access control and continuous monitoring.

• Multi-cloud strategies to reduce dependencies.
  
• Strict access controls (zero trust & IAM) and monitoring.
• Regular backups and recovery tests.
  

Change needs trust - and trust starts with security

Change is inevitable - but security must not become a side issue. Restructuring offers the opportunity to bring security architectures up to date and thus not only minimize risks, but also strengthen the trust of customers, partner organizations and authorities.

Cyber security is a key success factor for sustainable corporate strategies. Implementing sound security measures and adhering to proven best practices enables companies to create resilient structures and operate successfully in the long term.

An independent cyber security assessment from InfoGuard helps you to identify vulnerabilities in a structured manner, efficiently meet regulatory requirements and further develop your security architecture in a targeted manner.

By means of concrete recommendations for action - on a technical, organizational and legal level - you will achieve greater resilience and trustworthy business processes for your company with the support of our specialist team.

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