Backstop survey reveals increasing focus on cybersecurity for institutional investors
Cybersecurity is an increasingly important issue for institutional investors according to a new survey by Backstop Solutions Group which quizzed investors on their firm’s cybersecurity priorities, budget allocation, and confidence in their ability to recover from an attack.
“With barriers to entry getting lower, the threat of cyber-attacks is only growing,” says Michael Neuman, Backstop’s Head of Information Security. “It’s crucial that firms look at their preparedness and create an integrated plan that readies the company to fight these attacks.”
“As cyber security threats continue to rise, the financial consequences of a breach can wreak havoc for fund managers and multi-managers,” added Chris DeNigris, Backstop’s Global Marketing Manager. “Institutional investors have proprietary client information and not having preventative measures in place can lead to long term reputational damage for the firm.”
The results of this study revealed a growing concern for data security, with over 34 per cent of respondents claiming that cybersecurity is a top priority for the firm, while only 4 per cent saying it was not a priority.
In addition, 77 per cent of respondents listed cybersecurity as at least “an important” priority, while 43 per cent of respondents said their firm had increased its budget for cybersecurity including prevention.
Despite the overwhelming percentage of respondents stressing the importance of information security, some firms still feel a lack of preparedness in their protection against and ability to recover from attacks. Over 10 per cent of respondents expressed a lack of confidence in, or transparency around, their firm’s recovery plan in the event of a cyber-attack, while less than 20 per cent conveyed complete confidence in their firm’s recovery plan.