Becker Private Equity & Business Podcast Summary

Episode: Cybersecurity, M&A, and the Evolving Cyber Battlefield with Aniket Bhardwaj of Charles River Associates
Host: Scott Becker
Guest: Aniket Bhardwaj, Vice President and Global Incident Response and Services Leader at Charles River Associates
Release Date: April 22, 2025

Introduction

In this enlightening episode of the Becker Private Equity & Business Podcast, host Scott Becker engages in a comprehensive discussion with Aniket Bhardwaj, a leading figure in cybersecurity and incident response at Charles River Associates. Aniket delves into the intricate relationship between cybersecurity, mergers and acquisitions (M&A), and the evolving landscape of cyber warfare, offering valuable insights for businesses navigating these complex domains.

Cybersecurity and the Nation-State Battlefield

Scott Becker initiates the conversation by addressing the rising significance of cybersecurity in the context of national security and commercial operations.

Aniket Bhardwaj emphasizes the centrality of cybersecurity in today’s digital age:

“Everything we value from financial systems, healthcare infrastructure, energy grids, to intellectual property, elections, or even personal identity now lives in or depends on the digital domain. And as that dependency grows, so does the attack surface.”
[04:19]

He further elaborates on cyber warfare’s role in reshaping geopolitics, highlighting how nation-states utilize cyber operations to gain strategic advantages without physical confrontation:

“The overall objective is to gain strategic advantage, all without crossing a physical barrier. So it's really like the low cost, high impact and often deniable.”
[05:44]

Aniket underscores that the future is not just digital but also contested, with cybersecurity at the heart of business continuity, national stability, and social trust.

Cybersecurity in Mergers and Acquisitions (M&A)

Transitioning to the M&A landscape, Scott Becker probes into how cybersecurity is influencing deal-making processes.

Aniket Bhardwaj responds by outlining key trends where cybersecurity serves as a deal driver rather than an afterthought:

• Quantifying Cyber Risk: Private equity firms are increasingly assessing breach histories, legacy systems, and shadow IT to evaluate downstream exposures.

• Post-Acquisition Readiness: Firms now demand comprehensive playbooks for securely onboarding new portfolio companies and preparing for incidents like ransomware attacks, especially in regulated industries such as healthcare and fintech.

• Attack Surface Management: There is a heightened focus on understanding publicly exposed vulnerabilities before finalizing deals.

He asserts:

“Cyber diligence has become a competitive advantage, not just another compliance checkbox. That's a key element to understand.”
[08:10]

Aniket highlights that effective cyber diligence can influence valuations, warranties, and integration timelines, providing firms with leverage to negotiate and protect their investments effectively.

Navigating the Cyber Insurance Landscape

Scott Becker brings up the topic of cyber insurance, questioning its reliability in the event of serious cyber attacks.

Aniket Bhardwaj clarifies the evolving role of cyber insurance:

“Cyber insurance really steps in to help organizations recover financially and operationally when those threats become the reality.”
[08:37]

He outlines the critical components of cyber insurance, including:

• Coverage Elements: Incident response costs, forensic investigations, legal counsel expenses, and regulatory fines.

• Response Coordination: Access to a panel of experts such as forensic firms, breach coaches, and PR specialists, with insurers often orchestrating the response.

• Risk Incentives: Premiums and coverage are increasingly tied to the strength of an organization’s cyber posture, promoting better security hygiene.

Aniket emphasizes that cyber insurance should reinforce cybersecurity measures, akin to how car insurance complements safe driving practices.

Trends in Incident Response

When discussing incident response (IR), Aniket Bhardwaj identifies several emerging trends:

1. Geopolitical Activity: Persistent cyber espionage and state-sponsored attacks targeting global organizations remain a primary concern.

2. Complexity of Attacks: Modern incidents involve multipronged strategies combining extortion, data theft, and supply chain compromises. For instance, threat actors now conduct targeted extortion without encryption, focusing on data exfiltration and subtle threats rather than blatant ransom demands:

   “It's not about recovering systems anymore. It’s really about the brand, the trust, and the overall legal exposure.”
   [14:27]

3. Legal and Regulatory Stakes: Increased collaboration between organizations and external entities like legal counsel, insurers, regulators, and law enforcement is crucial during incidents, with shrinking timelines and escalating expectations.

4. Identity as the New Perimeter: Compromises often begin with vulnerabilities in identity management, such as weak multi-factor authentication or over-privileged accounts, underscoring the importance of robust identity controls.

Aniket concludes that incident response has evolved from a technical process to a form of crisis leadership, with well-prepared organizations better equipped to handle high-stakes situations.

Ransomware and Extortion Dynamics

Scott Becker raises concerns about the efficacy of paying ransoms in ransomware attacks, questioning whether it deters future attacks.

Aniket Bhardwaj responds by cautioning against the reliability of ransom payments:

“Paying the ransom might stop the bleeding in the moment. But it doesn't mean that the threat is gone for good.”
[15:09]

He explains that attackers often return unless the underlying vulnerabilities are thoroughly addressed:

“If you don't change the locks, what stops them from coming back?”
[17:11]

Aniket emphasizes the necessity of not just recovering systems but also hardening defenses post-incident to prevent recurrence, advocating for comprehensive measures like network segmentation, visibility, threat hunting, and timely vulnerability remediation.

Client Engagements and Case Studies

Aniket Bhardwaj shares illustrative examples of Charles River Associates’ work with clients:

1. Global Manufacturing Company Ransomware Attack: Facilitated prioritization of system restoration, coordinated forensic and legal efforts, and managed executive communications and insurer reporting to help the business survive the crisis.

2. Private Equity Firm’s Portfolio Assessment: Identified weak identity controls and traces of past compromises in a potential acquisition, influencing valuation discussions and providing leverage to protect the investment.

3. North Korean IT Workers Incident: Assisted a US-based software company in containing threats posed by embedded remote contractors, coordinating with law enforcement, and managing regulatory fallout.

He encapsulates the firm’s role as controller in high-stakes moments, helping clients regain control when margins for error are minimal.

Future Focus and Innovations

Looking ahead, Aniket Bhardwaj outlines his key focus areas:

• From Reactive to Proactive: Transitioning organizations to resilience through proactive risk identification, simulation-based training, and enhanced collaboration between legal, security, and business units.

• Cyber Diligence in M&A: Embedding cyber risk assessment earlier in the deal lifecycle and maturing portfolio-wide risk oversight.

• Intersection of Cyber Risk and Innovation: Exploring how cybersecurity influences investment decisions, insurance models, and national security policies.

• Advising Startups: Participating in ransomware advisory boards and integrating context-rich risk signals into decision-making processes to preempt incidents.

Aniket’s vision centers on anticipating threats and ensuring clients remain one step ahead in the cybersecurity landscape.

Personal Insights and Recognition

Scott Becker inquires about Aniket’s academic background and recent recognitions.

Aniket Bhardwaj reflects on his journey, attributing much of his expertise to his education at Johns Hopkins University:

“The program was deeply interdisciplinary, combining technical depth with national security, regulatory strategy, and real-world risk management.”
[23:25]

He credits his academic foundation and industry experience for his leadership capabilities, enabling him to handle both technical investigations and executive-level decision-making during crises. Aniket expresses gratitude for being recognized as one of the top cybersecurity professionals, attributing this honor to his family, clients, and colleagues.

Conclusion

In this episode, Aniket Bhardwaj provides a nuanced exploration of the critical interplay between cybersecurity, M&A, and national security. His insights illuminate the evolving threats and the strategic measures organizations must adopt to navigate the digital battleground effectively. For leaders in private equity and business, Aniket’s expertise offers invaluable guidance in safeguarding investments and ensuring operational resilience in an increasingly contested digital frontier.

Notable Quotes:

• “Cyber diligence has become a competitive advantage, not just another compliance checkbox.”
  [08:10] - Aniket Bhardwaj

• “It's not about recovering systems anymore. It’s really about the brand, the trust, and the overall legal exposure.”
  [14:27] - Aniket Bhardwaj

• “Paying the ransom might stop the bleeding in the moment. But it doesn't mean that the threat is gone for good.”
  [15:09] - Aniket Bhardwaj

Host:
Scott Becker
Becker Private Equity & Business Podcast

Guest:
Aniket Bhardwaj
Vice President and Global Incident Response and Services Leader
Charles River Associates