During the due-diligence phase of an acquisition, a large manufacturing firm is preparing to finalize the purchase of a smaller competitor that operates in several overseas markets and holds valuable trade-secret designs. Senior leadership invites the CISO to the negotiation table and asks for security input before signing. Which action should be the CISO's foremost priority at this stage?
Plan the removal of all legacy systems used by the target company
Form a joint post-acquisition integration team with representatives from both companies
Conduct a comprehensive assessment of the target company's cybersecurity risk posture and data-protection controls
Begin implementing the parent company's information-governance policies in the target environment
The CISO's first priority is to commission or perform a comprehensive assessment of the target company's security posture and data-protection controls. The acquiring firm will inherit any unmitigated vulnerabilities, regulatory exposures, or latent breach liabilities, so identifying them before closing can influence valuation, contract terms, and integration planning. Implementing new governance policies, decommissioning legacy systems, or forming an integration team are important follow-up tasks, but none address the immediate need to reveal unknown risks that could jeopardize the transaction or create unforeseen legal and financial obligations.
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Why is assessing the target company's risk posture important during an acquisition?
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ISC2 CISSP
Security and Risk Management
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