Cybernance Raises Initial Funding, Announces First Cybergovernance Solution for Corporate Directors
Firm founded by Austin cybersecurity veterans reduces personal liability for board members with a hybrid technology and insurance solution
AUSTIN, August 31, 2015 – Cybernance Corporation announced today its launch of the first dedicated cybergovernance platform. Several Texas-based investors participated in Cybernance’s first round of financing. The proceeds will be used to complete the solution and launch the company’s go-to-market plans for its standards-based SaaS cybersecurity governance platform that protects directors from cybersecurity lawsuit expenses.
Cybernance’s primary users are corporate board members who need to play a more effective in overseeing cybersecurity initiatives to ensure that management is continually increasing cyber risk maturity. The solution demystifies cybersecurity while protecting directors from personal liability for cybersecurity breaches by archiving their cybergovernance activities and indemnifying them against expenses incurred from cybersecurity litigation.
Key Cybernance Platform features:
- CMOM (“Cybergovernance Maturity Oversight Model”) is a new industry model that bridges the communication gap between non-technical directors and cybersecurity management;
- A CMOM-based Executive Console makes a variety of internal and external board-relevant information instantly accessible to directors and enables them to oversee progress;
- Five technology-enabled services (oversight, defense, remediation, mitigation, validation) mitigate cyber risk and litigation risk.
- Up to $500,000 in personal legal expenses are warranted in the event a shareholder suit is pursued.
Cybernance Corporation was founded in response to the emergence of a new market – board governance of cybersecurity. The SEC and FTC began actions in 2014 to hold directors personally liable for cybersecurity breach losses if they do not take an active role in improving their company’s cybersecurity stance. “Enabling directors to oversee the organization’s cyber risk mitigation requires bridging the gap between them, the CEO, and the security staff and vendors who implement cybersecurity measures,” said Mike Shultz, co-founder and CEO of Cybernance. “Our CMOM model, executive console, and supporting technology services create a business-focused framework for tracking and improving cybersecurity maturity across the organization.”
Cybergovernance bridges two fast-growing markets: cybersecurity and GRC (governance, risk, and compliance), with compound annual growth rates of 10% and 14%, respectively [Markets and Markets]. Unlike compliance solutions for CFOs and operations management, or cybersecurity products for technical and security managers, Cybernance solves the unique cyber risk requirements that impact corporate directors.
While litigation risk to directors is traditionally covered by D&O (directors and officers) insurance, D&O providers considering a “carve out” of cybersecurity from their policies. Assessing traditional D&O risk is based upon decades of data, but similar data on the financial impact of cybersecurity is sparse at this point. Cybernance fills the gap by indemnifying directors against shareholder suit expenses and giving them the insight they need for effective governance.
“Our platform enables oversight while protecting directors from personal liability,” said Bob Barker, Cybernance Chief Strategy Officer. “The goal is to demystify cybergovernance so directors can exercise prudent business oversight and duty of care in the same way they handle financial risk. Our next step is making the platform available to vendor partners who want their business-level results visible to the board.”
About Cybernance Corporation
Cybernance is an Austin-based startup founded by former officers of Infoglide Software, a cybersecurity company sold in 2013 to FICO. Cybernance is a SaaS governance solution providing the visibility and oversight that enables corporate directors to guide their company’s leadership toward continually increasing the company’s level of maturity and readiness with respect to cybersecurity breaches. Cybernance also protects board members from personal liability for cybersecurity breaches by delivering and storing board-appropriate information useful in the event of a suit, and by warranting their legal expenses in the event of litigation for cybersecurity damages.
For more information, visit https://www.cybernance.com.