In a recent SEC report, Braze, Inc. (ticker: BRZE), a leading customer engagement software company, highlighted the growing risks of cyber attacks and their potential impact on both the business and its clients. The company acknowledges the evolving nature of security threats, including the increasing prevalence and severity of ransomware attacks, nation-state-sponsored cyber attacks, and security vulnerabilities in remote work environments.
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Braze asserts that its customers can also be targeted for similar cyber threats
Braze asserts that its customers can also be targeted for similar cyber threats, and bad actors can access the company’s platform and services using a customer’s credentials. The company identifies various types of threats, such as social engineering attacks (including phishing, vishing, and hybrid phishing attacks), malicious code (e.g., viruses and worms), malware, denial-of-service attacks, personnel misconduct or error, ransomware attacks, supply-chain attacks, software bugs, server malfunctions, and natural disasters.
International instability has been noted as a possible catalyst for an increased risk of cyber attacks.
International instability has been noted as a possible catalyst for an increased risk of cyber attacks. For instance, the ongoing conflict between Russia and the Ukraine has raised concerns over potential nation-state-sponsored cyberattacks against private companies. The SEC report states that such actions may occur in the future and could lead to a security incident, resulting in unauthorized acquisition, modification, destruction, loss, alteration, encryption, disclosure of or access to data.
Braze acknowledges the importance of maintaining appropriate cybersecurity measures
Braze acknowledges the importance of maintaining appropriate cybersecurity measures and compliance with certain data privacy and security obligations. While the company has implemented steps to protect proprietary, regulated, sensitive, confidential, and personal information under its control, Braze admits that its security measures (or those of its third-party service providers) may not be effective against current or future security risks and threats.
The consequences of a security breach or incident can be costly and damaging to the company
The consequences of a security breach or incident can be costly and damaging to the company. These consequences may include government enforcement actions (e.g., investigations, fines, penalties, audits, inspections), additional reporting requirements or oversight, restrictions on data processing, litigation, indemnification obligations, negative publicity, reputational harm, financial loss, and interruptions in operations. This could cause existing customers to stop using Braze’s platform, deter new customers, and negatively impact the company’s ability to grow and operate its business.
Moreover, the company acknowledges that its failure to comply with customer agreements regarding the collection, processing, use, and disclosure of personal information could result in additional costs and liabilities
Moreover, the company acknowledges that its failure to comply with customer agreements regarding the collection, processing, use, and disclosure of personal information could result in additional costs and liabilities, customer lawsuits, termination of customer agreements, or governmental enforcement actions. These disputes could lead to adverse publicity and reputational harm, further affecting the company’s business, financial condition, and results of operations.
Braze’s SEC report underscores the significance of cybersecurity for both the company and its customers
Braze’s SEC report underscores the significance of cybersecurity for both the company and its customers. With the constantly evolving cyber threat landscape, businesses need to continually strengthen their security measures and remain vigilant in the face of potential risks and cyber attacks. By staying informed and proactive, companies can help mitigate the impact of cyber threats on their business and continue to provide reliable, secure services to their customers.
Note that we may hold securities mentioned in this article. All data is based on recent SEC filings. Even though we have implemented various manual and automatic fact-checking and data acquisition processes, some incorrect information may have slipped through (false positive). Let us know if you find any inconsistencies!