Why Cybersecurity Consultancies are Beneficial to Hedge Funds

7th August 2022

Just how secure are your systems? Over the years, cybersecurity has increasingly become a concern in the hedge fund industry. As per the KPMG survey in business investment technology, most business entities are susceptible to cyber-attacks. Regulators are taking a keen interest in understanding, assessing and providing remedies to cyber-attacks.

In this article, we provide an overview of cyber-attacks and how hedge funds benefit from cybersecurity follow-ups.

What is cybersecurity?

Cybersecurity entails the understanding of data and systems risks of doing business in the tech-world. Attackers have taken theft, sabotage and espionage of various business models to the next level.

What does this mean for hedge funds?

Cyber risks may range from fraud to asset under management flaws such as; trading algorithms, data relating to investors, investment strategies, funds or finances. Attackers could interfere a great deal with business operations.

Fortunately, there is Remora, your immediate cybersecurity guardian. Cybersecurity consultancies will remain relevant to hedge funds in the following ways.

Protocols documentation

Hedge funds ought to document all their security approach and impending changes in future. The validity of this information is key to any cybersecurity firm’s security. The document should include:

  • Cyber insurance documentation.
  • Cybersecurity governance structure and working model.
  • Cybersecurity policies and procedures.
  • Understanding risks associated with third-party vendors

Besides additional support from vendors, landing the right vendors requires hedge funds to understand how the partners intend to secure sensitive data.

Network and data protection

Having the ability to show hedge fund managers and the sequent clients how secure their networks and data is, guarantees trust and compliance. Efforts to minimize cybersecurity issues by hedge funds work to bring out quality risk management standards.

Identification of risks associated with customer funds transfer

Are your online transactions secure? That’s a question hedge funds need to consider. How to control and secure customer data is an essential aspect of the success of a company. Hedge fund managers need to assure their high net worth client’s information is protected.

Prompting in case of unauthorized activity

A good cybersecurity monitoring tool can make it easier for hedge funds to red-flag cybersecurity threats instantly. In detecting unauthorized activities, education and tutorials play a vital role. Engaging a credible cybersecurity firm services could save you all the hassle.

Ultimately, it is wise to acknowledge that cybersecurity is not a one-off practice. It requires constant and intermittent efforts to stay protected from impending threats. Hedge funds should adopt modern cybersecurity models. Also, managers should be up to speed with evolving regulatory expectations as it helps avoid regulations and regulatory fines.

For cyber risk assessments, schedule an appointment Remora corporate cybersecurity