Executive Actions Taken to Enhance Cyber Resilience in Maritime Sector Amid Deals and Digitization

In the rapidly evolving maritime industry, the digital transformation is driving a growing concern for cyber risk at the enterprise level. With global trade becoming increasingly reliant on interconnected vessels, ports, and logistics systems, the vulnerability of the maritime sector to cyberattacks is heightened, posing risks such as supply chain disruption and regulatory intervention.

A recent survey revealed that over 70% of maritime professionals acknowledge their organizations’ industrial assets are more susceptible to cyberattacks than ever before. Similarly, an equal percentage indicated that their leadership views cybersecurity as a top business risk. This awareness emphasizes the importance of cyber resilience, especially in the context of mergers and acquisitions (M&A) within the maritime industry.

Cybersecurity has become a crucial factor in maritime M&A transactions, influencing valuation, deal execution, and post-deal integration. Failing to conduct thorough cyber due diligence can result in inherited vulnerabilities, compliance issues, and operational disturbances. Executives must prioritize cybersecurity assessments throughout the transaction lifecycle, focusing on evaluating the target’s cyber maturity, incident readiness, and alignment with regulations. Additionally, implementing contractual protections such as indemnities and warranties is essential. Post-deal closure, aligning cybersecurity capabilities among entities is vital to mitigate risks and protect deal value.

For board directors and C-suite executives, maritime cybersecurity is now a strategic, operational, and reputational concern. To strengthen cyber resilience and preserve value across the maritime ecosystem, a set of prioritized actions are outlined in this article. Cyber threats in the maritime industry extend beyond traditional IT systems, affecting vessels, ports, logistics hubs, and global supply chains. Ransomware remains a prevalent threat, with incident costs averaging $550,000 and ransom payments surpassing $3.2 million on average.

Despite the sector’s growing strategic significance and increased vulnerabilities, structural barriers hinder the establishment of consistent cybersecurity standards. These barriers include underinvestment in cyber resilience, limited cybersecurity awareness among front-line personnel, complex incident response at sea, and uneven security maturity among OEMs and vendors. Addressing maritime cybersecurity as a capability gap requiring allocated funds, established improvement KPIs, and board oversight integrated with operational risk registers and resilience objectives is essential.

Key considerations in maritime cybersecurity entail regulatory pressures, cyber risk frameworks, talent, and training. European companies must stay updated on key regulatory initiatives, such as the EU NIS2 directive and EU Regulation 725/2004, mandating cyber risk integration in port security assessments. Executives should ensure regulatory compliance across ship, shore, and third-party operations while anticipating regulatory convergence.
Integrating cyber into enterprise risk management, vendor governance processes, and adopting the “Governance, Identify, Protect, Detect, Respond, Recover” model is vital. High-performing organizations conduct joint IT/OT cyber risk assessments, embed cybersecurity requirements into procurement contracts, and engage in information sharing networks to enhance cyber resilience.

Moreover, investing in cyber capability as a workforce asset, aligning with regulatory push for cybersecurity awareness and competence, and deploying simulation-based training and tailored e-learning modules can strengthen cyber resilience in maritime operations. Continuous efforts to address cyber risks will be crucial in safeguarding the maritime sector against cyber threats and preserving business value in an increasingly digitized industry.