Skip to content
DWB_Master_Logo_2022-08-05_WithTrademark_Dual_Dark_Web
  • Platform
  • Professional Services
  • Markets
  • News & Views
  • About
    • Company Overview
    • Leadership
    • Partners
    • Careers and Culture
    • Awards
  • Contact
  • Platform Login
  • Platform
  • Professional Services
  • Markets
  • News & Views
  • About
    • Company Overview
    • Leadership
    • Partners
    • Careers and Culture
    • Awards
  • Contact
  • Platform Login
Request a Demo

Request a Demo

    Back to All News
    September 13, 2023-Emerging Funds, Emerging Manager, Regulatory Readiness, Start up fund-Simon Eyre

    Why cybersecurity programs are a must-have for emerging funds

    Emerging managers face a vicious fundraising market and coupled with the increasing requirements for regulatory compliance they can quickly lose their agile edge in a marketplace. On face value, cybersecurity feels like an anchor to their firm but there are incredible advantages to the start-up fund that might not be initially apparent. 

    It’s not just regulators that are taking a focus on cybersecurity. Investors and allocators take considerable time to ensure their investments will be handled appropriately and cyber risk has been taken into account. Proper preparation around a cybersecurity program can become a differentiator and one for minimal investment.  

    Good cybersecurity does not equal significant investments in technology. In fact, many start-up funds will likely limit tech spend to cloud collaboration tools such as Microsoft 365 and Google Workspace, plus SaaS (software as a service) programs for trading and service providers for fund admin. All of these can be brought under a correctly deployed cyber framework that’ll result in a secure set of processes and administrative controls. It will demonstrate a level of maturity and thought that stands out.  

    With the vision to grow, there is no better time to implement the right cyber controls than at inception either. A cybersecurity program is designed to grow and evolve with a business. Cyber is never a throw-away. It is far harder to adapt cyber into an established business and change the culture and work style later. 

    There are only downsides to not establishing a cybersecurity program. Poor security controls can easily result in the modern-day digital bank robbery, most commonly in the financial world via ransomware, social engineering, and impersonation techniques. No business is “too small” to be noticed on the internet. In fact, the majority of attacks are size agnostic, despite the headliners appearing to be large, targeted attacks. 

    Investors and regulators alike will expect firms to declare major breaches and if the damage from the attack wasn’t disruptive enough then the reputational damage will take a significant additional toll. The SEC’s new proposed cybersecurity rules even flag this difficulty for emerging managers, pointing out cyberattacks are more detrimental to smaller companies and their investors.1 

    Emerging managers should not consider cybersecurity a burden but embrace the advantages it can bring to their business. It might seem like a subtle edge but in the eyes of the allocators, it’s an important one. 

    Sources:

    1 https://www.federalregister.gov/d/2022-05480/p-453 

    Tags:

    Emerging Funds, Emerging Manager, Regulatory Readiness, Start up fund
    DWB_Master_Logo_2022-08-05_WithTrademark_White_Dual_Dark_Web

    Platform

    • Holistic Program Management

    • Vulnerability Management

    • Vendor Due Diligence

    • Portfolio Company Due Diligence

    • Cyber Risk Assessment

    • Regulatory Assessment

    • Cloud Security Assessment

    • Dark Web Monitoring

    • Penetration Testing

    Professional Services

    • Let’s Get Started

    • Cybersecurity Training

    • Cybersecurity Advisory

    • Policy Creation & Gap Analysis Advisory

    • Data Privacy

    • Business Continuity

    Markets

    • Private Equity, Venture Capital & Portfolio Companies

    • Hedge Funds

    • Family Offices & Asset Managers

    • Asset Allocators and Owners

    News & Views

    • Alerts

    • Awards

    • Media

    • Press Releases

    • Thought Leadership

    About

    • Company Overview

    • Leadership

    • Partners

    • Awards

    • Careers and Culture

    • Contact

    © 2023 Drawbridge. All Rights Reserved.

    Privacy Policy   |   Diversity Statement   |   Platform Login

    Cleantalk Pixel
    We use cookies on our website to give you the most relevant experience by remembering your preferences and repeat visits. By clicking “Accept All”, you consent to the use of ALL the cookies. However, you may visit "Cookie Settings" to provide a controlled consent.
    Cookie SettingsAccept All
    Manage consent

    Privacy Overview

    This website uses cookies to improve your experience while you navigate through the website. Out of these, the cookies that are categorized as necessary are stored on your browser as they are essential for the working of basic functionalities of the website. We also use third-party cookies that help us analyze and understand how you use this website. These cookies will be stored in your browser only with your consent. You also have the option to opt-out of these cookies. But opting out of some of these cookies may affect your browsing experience.
    Necessary
    Always Enabled
    Necessary cookies are absolutely essential for the website to function properly. These cookies ensure basic functionalities and security features of the website, anonymously.
    CookieDurationDescription
    cookielawinfo-checkbox-analytics11 monthsThis cookie is set by GDPR Cookie Consent plugin. The cookie is used to store the user consent for the cookies in the category "Analytics".
    cookielawinfo-checkbox-functional11 monthsThe cookie is set by GDPR cookie consent to record the user consent for the cookies in the category "Functional".
    cookielawinfo-checkbox-necessary11 monthsThis cookie is set by GDPR Cookie Consent plugin. The cookies is used to store the user consent for the cookies in the category "Necessary".
    cookielawinfo-checkbox-others11 monthsThis cookie is set by GDPR Cookie Consent plugin. The cookie is used to store the user consent for the cookies in the category "Other.
    cookielawinfo-checkbox-performance11 monthsThis cookie is set by GDPR Cookie Consent plugin. The cookie is used to store the user consent for the cookies in the category "Performance".
    viewed_cookie_policy11 monthsThe cookie is set by the GDPR Cookie Consent plugin and is used to store whether or not user has consented to the use of cookies. It does not store any personal data.
    Functional
    Functional cookies help to perform certain functionalities like sharing the content of the website on social media platforms, collect feedbacks, and other third-party features.
    Performance
    Performance cookies are used to understand and analyze the key performance indexes of the website which helps in delivering a better user experience for the visitors.
    Analytics
    Analytical cookies are used to understand how visitors interact with the website. These cookies help provide information on metrics the number of visitors, bounce rate, traffic source, etc.
    Advertisement
    Advertisement cookies are used to provide visitors with relevant ads and marketing campaigns. These cookies track visitors across websites and collect information to provide customized ads.
    Others
    Other uncategorized cookies are those that are being analyzed and have not been classified into a category as yet.
    SAVE & ACCEPT
    Scroll To Top