Moody's spends hundreds of millions of dollars to better assess the cybersecurity risks facing major US companies.
The announcement by the company - whose credit rating could affect global markets - comes as Biden officials urge large companies to be more transparent about the security of their software. Several high-profile supply chain hacks and ransomware attacks have shaken businesses and other organizations in the past year, costing companies millions of dollars and jeopardizing their operations.
To better assess the risks of ransomware and other digital threats to Fortune 500 companies and government agencies, Moody's is investing $ 250 million in BitSight, which uses an algorithm to assess the likelihood of an organization being breached. Moody's shared the news first with CNN Business.
Under the deal, Moody's will become Bitsight's largest minority shareholder. In addition, BitSight will have a cybersecurity rating system created by Moody's and Team8, a company that is considered a "think tank" focusing on global cybersecurity issues.
"There's just a lot of opacity around cyberspace," Moody's CEO Rob Fauber told CNN Business. "Violations have serious operational and organizational implications. They affect a wider range of industries and the stakes are higher than ever. ”
Fauber said the $ 250 million will be used to improve BitSight data and risk management bids, among other products. BitSight, which says its customers include 20% of Fortune 500 companies, will be able to make more detailed risk assessments and "translate it more clearly into the risk of financial loss," Fauber said.
Understanding cyber security risk has become a national and economic imperative.
Attacks ransomware that US companies have come under in recent months have forced critical infrastructure to be offline and jeopardized huge amounts of private information.
Source of information: edition.cnn.com