Accurately pricing risk is the most daunting aspect of valuing an acquisition. Perhaps the most difficult risk to price is cybersecurity exposure. Luckily, getting your arms around cybersecurity risk has become easier.

The April 2017 Journal of Accountancy had an interesting article regarding the use of Benford’s Law to spot fraud. I experimented with real-life data and determined that Benford's Law can be used to quickly scan huge datasets for potential fraud indicators. The underly...