Cyber Risk Management for Healthcare-Focused Investment Firms


Best-in-Class, Purpose Built Solutions to Protect Your Investment

As private equity (PE) and venture capital (VC) investors seek to capitalize on the healthcare industry’s transformation from a volume-driven, inpatient-centric model to more consumer-friendly, alternative care delivery models, their return on investment is threatened by the growing number of cyber attacks that are plaguing the industry.

The first half of 2019 saw an average of 1.5 breaches per day with 285 total reported breaches affecting 35 million individuals, more than double the total for all of 2018.

Leading investment firms are recognizing the importance of cyber risk management as part of not only the due diligence process but the entire lifecycle of their investments in healthcare organizations.

Clearwater focuses exclusively on delivering best-in-class Enterprise Cyber Risk Management Solutions (ECRMS) to the healthcare industry.  As cyber attacks on hospitals and health systems have become increasingly prevalent over the last decade, we have developed deep understanding of the unique risks healthcare organizations face and how to develop an effective risk management program that can scale and adapt as the threat landscape changes.

More than 400 healthcare organizations, including 60 of the nation’s largest health systems as well as tech innovators like Uber, Lyft, and Digital Reasoning, trust Clearwater to ensure the confidentiality, integrity, and availability of their information systems.

Our industry-leading ECRMS for healthcare, complete with our IRM|Pro® software, manages all of an organization’s risk analysis and risk response needs. We create best-in-class OCR-Quality Risk Analyses™ that proactively evaluate threats to all information systems, in all locations, creating the visibility necessary to pre-empt preventable breaches.

For healthcare-focused PE and VC firms seeking to understand and manage cyber risk surrounding target investments and current portfolio companies, Clearwater can help you:

Complete thorough Due Diligence:

  • Conduct an in-depth, streamlined review of policies and procedures, governance programs, organizational structure, and security practices to provide an early indication of areas of excess risk prior to making an investment
  • Identify the specific actions and steps that should be taken post-closing to mature an organization’s compliance and security programs and ensure that value is not impacted during the hold period due to an avoidable data breach

Manage Risk Within Your Portfolio:

  • Leverage a best-in-class cyber risk management platform that scales as you grow the business and centralizes the management of information security and privacy risk
  • Standardize risk assessment to enable better risk management decisions
  • Drive reporting efficiencies and standardization to enhance board-level visibility into information security and compliance risks

Prepare for an Exit:

  • Identify potential vulnerabilities that can be remediated prior to beginning the sale process
  • Provide reporting and documentation that affirms the strength of the organization’s compliance and security infrastructure
  • Proactively position a company’s cyber risk and HIPAA compliance program to address buyers’ growing cyber risk concerns and avoid value erosion during the sale process

Learn more about Clearwater and the Company’s Cyber Risk & HIPAA Compliance Due Diligence Assessment for healthcare organizations.