As global private debt assets under management continue to grow – they are projected to reach over $2.6 trillion by 2026 – effective lender response to the increasing risk of cyber incidents is essential. When engaging in diligence on a potential borrower, lenders should understand how to assess the efficacy of a borrower’s cybersecurity program, including whether it has appropriate written policies and procedures in place. In this two-part guest article series, Proskauer partners Ryan P. Blaney, Bharat Moudgil and Evan Palenschat discuss considerations to prevent and mitigate the effects of a borrower’s cyber incident. This first part discusses the cost of breaches and why vigilance is urgent, and provides steps to take to assess a borrower’s preparedness. Part two will cover how to prepare for and address a borrower’s breach. See “Identifying and Tackling Privacy and Cyber Due Diligence Challenges in M&A” (Mar. 23, 2022).