From: SMLR group
Cybersecurity Threats Pose Real Danger To Hedge Fund Firms
from FINalternatives, May 19 2014
It is a near certainty that a cybersecurity breach will occur at some point at every asset management firm. However, with careful preparation, firms can take control over how damaging that breach may be. What are the biggest cybersecurity threats facing hedge fund firms, and how they can steel themselves against them?
What are the biggest technological challenges facing fund managers?
There’s really a shifting mindset throughout the hedge fund industry as far as technology is concerned. In the past, fund managers have maintained focus on keeping productivity high, keeping operations simple and concentrating on managing money – after all, that’s the primary goal. But in today’s world, technology has come to play an important role in shaping a fund’s operations, and as a result, it becomes necessary for firms to have a person or persons dedicated to managing IT. Whether that role is internal or outsourced, IT has become more of a strategic role, and those managing it are dealing much more with creating and maintaining policies and procedures, particularly around security. It makes it challenging then to balance the need to manage risk with the desire to keep productivity high.
What was the SEC’s cyberspace initiative that was unveiled last month?
The SEC first made it clear they wanted to take a closer look at cybersecurity when they announced a roundtable earlier in the year. Since then, they’ve issued a Risk Alert which announced they would be conducting exams of at least 50 registered broker dealers and investment advisers. The most important thing we saw come out of that announcement was the sample questionnaire provided by the SEC.
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