BitSight, the standard in security ratings, and Glass Lewis, the leading provider of independent global governance solutions, today announced a strategic partnership to include critical cybersecurity information – comprised of BitSight Security Ratings, data, and insights – with Glass Lewis’ Proxy Paper research reports. Information on 20,000+ companies will be included in an effort to help investors better understand how cybersecurity issues may affect their investments.
Investor concerns around environmental, social, and governance issues continue to rise, leading to closer examinations of management and board effectiveness in addressing these challenges. Failure to adequately manage cyber risk can materially impact a company’s revenue and financial performance. BitSight’s Security Ratings and data will supply Glass Lewis clients with data-driven, evidence-based cybersecurity intelligence, which, in turn, will provide new visibility into a dimension of company performance and governance.
“Investors are mostly in the dark when it comes to the cybersecurity of their investments,” said Steve Harvey, BitSight’s chief executive officer. “Providing Glass Lewis clients with BitSight ratings and data alongside its proxy research reports will deliver the insights necessary to have an enhanced understanding of the efficacy of a company’s oversight of cybersecurity risks and outcomes. It’s a new era in informing investors about cyber risks.”
“The BitSight Security Rating and insights will allow our clients to identify cyber risk exposure, potentially minimizing both reputational risk and long-term financial losses,” said Dan Concannon, Glass Lewis Chief Commercial Officer. “We are excited to include the industry’s most respected and widely leveraged Security Rating in our Proxy Paper research reports allowing our clients to address this rapidly expanding risk.”
The landscape of governance, especially as it pertains to cyber controls, is changing rapidly and institutions from the United Nations to the Securities and Exchange Commission (SEC) are increasingly focused on market transparency for global investors. Beginning in 2011 with its landmark cybersecurity guidance, the SEC has signaled that cybersecurity is a material business risk requiring consistent, adequate disclosure. The SEC created a cyber enforcement unit in 2017, updated guidance in 2018, and recently levied a series of fines at companies over inadequate disclosures of cybersecurity issues.
Over 1,300 clients, including most of the world’s largest pension plans, mutual funds, and asset managers who collectively manage over $40 trillion in assets, use Glass Lewis’ research and technology solutions to inform and facilitate their corporate governance activities.