The answer is yes. Managers with fewer than 10 employees still need a strong cyber program.
Cyber crime affects any size of business but the smallest Investment Managers face heightened threats from social engineering and poor credential management.
What you should know – Small companies and firms suffer from a disproportionate number of attacks through poor credential management.
Regulators and allocators often include a proportionate approach to cybersecurity for small Investment Managers but they still expect that firms implement fundamental controls to adequately protect assets. Understandably, investors and allocators are concerned about phishing attacks and ransomware, which hit Investment Managers of all types and sizes.
Read: Small businesses face rising cyber threats, pleas to report attacks
Why you care – Cyber attacks on Investment Managers are almost entirely financially driven.
Ransomware attacks not only take out a firm’s ability to operate and can be costly to recover from, but the reputational damage will deter investors and draw the attention of regulators.
Investment Managers often needs to maximize their effectiveness with fewer staff members. Because each Manager is already taking on multiple business roles as the firm builds and establishes themselves, outsourcing cyber will allow you to focus on growing and investing.
Read: The 4 pillars of a flexible, cost-effective cyber program for emerging Hedge Funds
Read: 5 Essential cybersecurity steps for Portfolio Companies
Get smart – Address the two most frequently used attack techniques.
There are two attack techniques most often used on firms:
- Socially engineered attacks, which technology alone cannot prevent. By embedding cybersecurity into a developing business culture and preventing bad habits from taking root among your Staff, you greatly improve your chances of preventing attacks.
- Exploiting weak, compromised, or stolen credentials. Best practices for credential management include: using strong passwords that use uppercase and lowercase letters, numbers, and special characters; changing passwords every three months; and using two-factor or multi-factor authentication whenever possible.
Read: Top Cybersecurity Concerns Facing Hedge Funds In 2024: Key Risks & Strategies
Take action – Outsource cybersecurity risk assessments to guide a flexible cyber program appropriate for your staff size.
Demonstrating your investment into cyber can be an excellent way to market your commitment and early maturity to potential investors too. A well-planned cyber program reduces their risk profile of your firm.
A good cybersecurity vendor can assist with both strategy and raising funds, and you don’t need to become a cyber expert. Take advantage of an independent outsourced cyber firm to ensure you implement pragmatic cyber elements that fit with regulatory and investor expectations. By focusing on your staff and learning the most important cyber risks your business faces, your cyber program can grow with the firm.
To learn more about cost effective ways to build a strong cyber program for your firm, contact a Drawbridge representative.
