Wed, Jul 28, 2021
Welcome Guest
Free Trial RSS
Get FREE trial access to our award winning publications
Alternative Market Briefing

Other Voices: It's time for asset managers to finally get serious about cyber security

Friday, July 19, 2019

By: Paul M. Grassi, CPA, MBA

A combination of self-delusion and excuse-making has left the hedge fund and asset management industries vulnerable to hacks and their costly consequences.

When I talk about the risk of computer attacks to clients, those who run hedge funds and other private asset management firms often dismiss the topic. They always have a reason-or reasons:

"We're too small to be hacked."

"Our security guy is excellent."

"None of the other funds have had break-ins, so I don't think it's really a risk."

"If there's a problem, it won't be that big a deal for us to fix it."

"If we're breached, insurance probably wouldn't cover our costs anyway."

I've heard them all, more often than I can count, which is why I'll be blunt here: The hedge fund community rightly prides itself on sophisticated risk management, but as a whole the industry has been too slow to acknowledge its vulnerability to the ever-more-devious electronic exploits perpetrated by an ever-larger cast of ill-meaning parties.

Consider the headlines. Can the leadership of any firm with hundreds of millions or billions under management truly be sure their operations are more secure than those of Bank of Montreal, Target, Marriott, Equifax, Under Armour, the Democratic National Committee and Jeff Bezos?

Can your security guy really match wits with hackers from Russia......................

To view our full article Click here

Today's Exclusives Today's Other Voices More Exclusives
Previous Opalesque Exclusives                                  
More Other Voices
Previous Other Voices                                               
Access Alternative Market Briefing


  • Top Forwarded
  • Top Tracked
  • Top Searched
  1. SPACs: SPAC merger with space firm Momentus threatened by SEC fine, Altus Power to merge with SPAC created by CBRE in $1.58bn deal, 10 best cheap SPACs to buy according to Reddit, A-Rod's slam SPAC is in merger talks with Italy's Panini group, How to conjure a $20bn fortune using a SPAC[more]

    SPAC merger with space firm Momentus threatened by SEC fine From Bloomberg: A blank-check company's acquisition of space-cargo firm Momentus Inc. has been dealt a serious blow by the U.S. Securities and Exchange Commission, which accused both entities of misleading shareholders just we

  2. PE/VC: Private credit: The $1tn "new 40" opportunity[more]

    From Institutional Investor: The private debt asset class has provided investors with an attractive combination of high cash yield and floating rate returns coupled with low volatility and loss rates, while modernizing portfolios. Private credit is on a roll. Investors love the strong cash yie

  3. Distressed-debt funds get no love as credit problems disappear[more]

    From Bloomberg: Private debt investors are turning away from distressed funds amid shrinking opportunities to profit from troubled companies. Investors were less keen to put their money to work in funds that target distressed credits in the past quarter than a year ago, according to a poll of

  4. Investing: Cathie Wood's Ark Invest abandons Chinese tech stocks amid regulatory crackdown[more]

    From Business Insider: Cathie Wood's Ark Invest has slashed its exposure to Chinese tech stocks amid an ongoing regulatory crackdown, according to Ark's daily trading updates. Ark's flagship Disruptive Innovation ETF has seen its exposure to Chinese stocks fall to less than 1% from a high of 8

  5. SPACs: SEC abruptly kills Ackman's controversial SPAC plans, Bill Ackman rejigs Universal deal after regulators probe SPAC plan, SPAC-ing the Southeast Asia story, SPAC deals will rebound for remainder of 2021[more]

    SEC abruptly kills Ackman's controversial SPAC plans From Institutional Investor: The Securities and Exchange Commission has killed Bill Ackman's special purpose acquisition company's complicated plan to invest in Universal Music Group. On Monday, his SPAC, Pershing Square Tontin