Launching a Hedge Fund is complex in the best of times but don’t let establishing a robust cybersecurity program add to that complexity.
What you should know – A strong cybersecurity posture is expected at the earliest stages of launching a new Hedge Fund, by both investors and regulators alike.
A well-designed cyber program can:
- Demonstrate to investors that you can effectively keep their assets safe.
- Become a marketing tool by instilling greater investor confidence in your operational maturity.
- Secure your Hedge Fund’s reputation.
- Assist in your selection process of outsourced services (i.e. IT, accounting, etc.) .
Read: The 4 pillars of a flexible, cost-effective cyber program for emerging Hedge Funds
Why this is important – A strong cybersecurity program established before engaging investors differentiates your firm from your competitors in signaling a risk management mindset.
When investors begin their due diligence process, showcasing a well-established cyber program can win exceptional favor for your firm against ODD teams that increasingly have veto rights over your cyber preparedness.
Watch: [Webinar Recording] Cybersecurity essentials for a successful ODD
These foundational steps to launching a fund will accelerate regulatory applications with the likes of the SEC, DORA, and FCA too.
Cyber is also a differentiator when you begin to choose your own outsourced services. Completing vendor cyber risk assessments during the selection process can save you significant complications later in the days of the fund’s ramp up.
Read: Hedge Fund Start-Up Guide by AIMA
Take action – Kickstart your Hedge Fund’s cyber program.
To take your cybersecurity strategy to the next level ahead of your Hedge Fund launch, work with an independent cybersecurity vendor to perform a thorough cyber risk assessment.
Cyber risk assessments offer guidance to build a robust, yet cost-effective cyber program. Through such an assessment, your Hedge Fund can:
- Consult with specialists on relevant risks to the business.
- Inventory current threats and vulnerabilities in your system.
- Develop a clear roadmap for cyber risk mitigation.
Ideally, you should complete a cyber risk assessment at least 60 days before raising investor funds.
The Drawbridge Difference: Assessments & Analytics You Can Trust
Cybersecurity for Alternative Investment Managers is not one of the things we do. It’s the only thing we do.
We offer cybersecurity mitigation solutions, including a comprehensive Cyber Risk Assessment and Drawbridge Analytics.
Drawbridge Analytics gives you cybersecurity data you need to benchmark your cyber program against your peers, prioritize remediations, track tasks involved in managing your cyber program. Plus, Drawbridge Analytics’s interactive risk assessments provide you with a detailed overview of your full risk and control landscape.
Request a demo today to get started.
