Insights
The cyber landscape never stops shifting – and neither should your perspective. Our Insights bring you expert commentary, thought leadership and practical guidance on the issues shaping the alternative investments sector. Stay ahead of regulators, satisfy investors, and strengthen your resilience with analysis from the team that knows your world best.
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SEC Cyber Rule for Advisors vs. the Public Disclosure Rule
How the April 2024 SEC Cyber Rule differs from the Public Disclosure Rule, and what it means for you as an Alternative Asset Manager. What you need to know – How the SEC Cyber Rule differs from the Public Disclosure Rule . To help you prepare for the new cyber rule, let’s answer three essential…
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Vendors – The overlooked cybersecurity risk for Private Equity firms
Performing annual Vendor Risk Assessments are a critical step that help Private Equity (PE) firms proactively manage the chances and impact of a cyber breach. Though vendors play a crucial role in streamlining firms’ operations, cyber risks among third-party vendors present a real and present threat. What you should know – Top third-party vendor risks for…
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Why Cyber Risk Assessments are crucial for Private Equity firms & their Portfolio Companies
A successful cyber breach threatens Private Equity assets, reputation, and Portfolio Company (PortCo) valuation. What you should know –An undetected and unaddressed breach can lead to: Tarnished business reputations for you and your PortCo’s. Material financial losses from ransom to theft. Legal ramifications for non-compliance with current cybersecurity standards. Operational disruptions impacting the PortCo clients…
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The 4 pillars of a flexible, cost-effective cyber program for emerging Hedge Funds
Establishing a robust, but flexible and cost-effective cybersecurity program is non-negotiable for emerging Hedge Funds, who are budget constrained and seeking to scale quickly. To achieve an effective cyber program, focus on developing four strategic pillars within your program: Cyber Risk Assessments A solid foundation for your cyber program begins with comprehensive cyber risk assessments,…
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5 Essential cybersecurity steps for Portfolio Companies
With sensitive financial data and confidential client information at stake, ensuring compliance and preparing for potential cyber attacks is not just a good idea – it’s an absolute necessity. Cybersecurity is no longer considered just an IT risk. It’s a business risk. Private Equity firms and/or their Portfolio Companies (PortCo’s) risk steep financial costs as…
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What investors are concerned about in an operational due diligence review
What’s worse than having to address cybersecurity in your Operational Due Diligence (ODD) review? Getting caught with a dismal cyber program riddled with unaddressed vulnerabilities. Consider this unassailable fact: your investors care about strong cybersecurity. During initial ODD, your investors want to identify risks. During periodic, likely annual, reviews, investors want to see whether or…
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Cybersecurity trends from 2023 for Wealth Management Firms
As we embark deeper into 2024, it’s crucial for Wealth Management firms to recognize the increasing vulnerability they face in the realm of cybersecurity. Partnering with a firm who focuses on cybersecurity is paramount to managing cyber threats and meeting specific cyber-related regulatory requirements. In this blog post, we delve into trends from…
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The Importance of Independence
Investors and Allocators that are committed to independent operational due diligence and financial audits, are insisting on the importance of applying independence to cybersecurity. What should you know – Investors and Allocators view cybersecurity as following the footsteps of business financials and they expect independence in the assessment of your cybersecurity. They have identified…
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How Family Offices can preserve assets and mitigate cyber risk in 2024
Rising inflation interest rate hikes weren’t the only challenges that Family Offices faced in 2023. As Family Offices look to preserve asset values and safeguard their reputation, a lack of adequate cyber controls remains as one of the most significant financial and operational risks. Why you should care – Family Office assets and investments are…
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2023 in review: Alternative investment & wealth management cyber trends
This year was a challenging one for managers in the alternative investment and wealth management space. Aside from economic pressures, firms are experiencing regulatory shifts in the U.S. and Europe, from SEC and DORA, and an evolving cybersecurity landscape thanks in part to artificial intelligence. We’ve compiled the most popular Drawbridge content that addresses this…
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2024 SEC Examination Priorities for Cybersecurity in Registered Alternative Investment Funds
With the SEC’s “Cybersecurity Risk Management for Investment Advisors” rule still awaiting their final approval, they have released a significant update to the Department of Examination’s priorities for 2024. The publication comes with some interesting focal points for cybersecurity that help shape the direction we can expect in the final ruling. First, there is a…
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Q&A: Cybersecurity questions posed to ODD professionals
In case you missed it, Drawbridge broadcasted a webinar entitled, Expert Insights on Cybersecurity in ODD on November 15, 2023. We were joined by Christopher Vella, Technical Due Diligence Analyst from Albourne Partners, and Lauri Martin Haas, Managing Director at Prism Alternatives. They are both deeply experienced operational due diligence professionals who shared their insights…
