Optus Data Breach Puts Cybersecurity Back in FocusASX:WHK Oct 03, 2022
With the fallout from the massive Optus data breach reverberating across the headlines, the importance of cybersecurity is once more back in the collective consciousness of consumers and investors:
- One of the largest data breaches in Australian history - up to 9.8M customers data stolen, personal ID documents of up to 10,200 people were leaked online
- Debate over the sophistication of the attack
- Deloitte has been brought in and has been reviewing the systems for about a week
We think that cybersecurity is analogous to Environmental, Social, and Governance (ESG) principles - it only becomes a priority after something goes horribly wrong.
Major data breaches such as the one playing out right now, remind both investors and the public of the core value proposition that cybersecurity companies represent.
I.e - it acts best as a prevention measure rather than a post-hoc cure.
We’re hoping over time the market develops a growing appreciation for the work of cybersecurity companies that flows through to our cybersecurity Investment, Whitehawk (ASX:WHK).
Increasingly, we think cybersecurity maturity will become a baseline regulatory requirement for both large and small organisations.
Whitehawk has been quietly making progress towards operating cash flow positive status, having reigned in its loss to US$562k for the half year while boosting its revenue to US$1.6M up ~53%.
With operations focussed on the US cybersecurity market, WHK is looking to secure further work with major US government organisations and businesses - with the drawback to the field the company works in being that they cannot disclose much detail about their contract wins, such is the nature of cybersecurity.
We’re optimistic that WHK can secure further big contract wins in an increasingly risk-laden digital environment under the leadership of WHK CEO Terry Roberts.
Roberts has deep experience and connections within WHK’s target market, having had previous roles which include a stint as Deputy Director of US Naval Intelligence.