We recently hit our 500th post here on Hedge IT! To commemorate, we are hosting our annual blog awards! We've gathered the most thought-provoking, popular articles according to our readers and included a few of our personal favorites, as well.We hope you enjoy!
In this Opalesque.TV video interview, Bob Guilbert and Vinod Paul from Eze Castle Integration discuss the cybersecurity landscape of the investment community, specifically the risks facing hedge funds and alternative investment managers in 2015. Both spend the majority of their time educating their client base on internal and external risks, protecting them against the “Activist Hacktivists” looking for any means of entry into funds.
These hackers will spend weeks, months, and sometimes even years trying to get access, most often with the goal of triggering illicit wire transfers out of the fund.
Today, the usual efforts of employees to avoid clicking links or opening files and password protocoling aren't enough. Everyone should be aware of new techniques employed by hackers like “spearfishing” and “whaterhole” attacks which, with more institutional dollars flowing into hedge funds, will become more frequent. Unless funds have the right Written Information Security Policy (WISP) and processes in place, together with true intrusion detection that monitors what is coming into the firm and what data and information is going out of the firm, they can be at risk of a cybersecurity attack.
If you live in the Northeast United States – anywhere from DC to Maine – you’re likely living through the Blizzard of 2015 right now. Snow and heavy winds are pounding the East Coast, with snow totals expected to exceed 2 to even 3 feet in many areas and wind gusts to reach hurricane strength.
During weather events such as this, it’s critical that firms take precautions to ensure that not only do their technologies work and their businesses remain operational, but that their employees are safe, connected and receiving constant communications. We’ve experienced many events such as this in recent years – Hurricane Sandy is probably the most memorable – but the Blizzard of 2015 is an important reminder to firms about employing comprehensive business continuity plans and disaster recovery systems.
Here are a few reminders to get your firm through this latest weather event:
Communicating effectively with your employees is especially critical before, during and after disasters and other weather events. Be sure to keep your employees in the loop on what’s happening and what’s expected of them. Should they work remotely in the event they can’t get to the office? Are non-essential personnel expected to use paid time off? When can they expect updated communications regarding next steps?
If your firm employs a comprehensive BCP, you’ve likely already shared regional Quick Reference Cards so your staff is aware of evacuation locations, remote access policies and instructions and other communication essentials.
It’s officially 2015! With the New Year upon us it is important to set new goals for the future. In today’s post, we offer five resolutions hedge funds should consider to help pave the pathway for another prosperous year.
Resolution #1: Prepare for Cybersecurity
In 2014, hedge funds were revamping their IT policies and upgrading their methods of preventing, detecting and responding to cyber threats. However, this push to overhaul and enhance security was largely reactive to the several breaches we witnessed in 2014. Among those companies affected were Sony, Target, JP Morgan Chase and Home Depot. In 2015, we predict cybersecurity will remain at the forefront of headlines. That being said, hedge funds should prepare ahead of time and have detailed information security policies in place.
Resolution #2: Avoiding Common Cloud Mistakes
When it comes to hedge fund operations and technology, there is no margin for error. Common mistakes range from not sizing bandwidth adequately to business needs to not planning proactively for applications and assuming deep security safeguards are in place. Hedge funds that take the proper precautions and do their research when cloud shopping save themselves from preventable stress and inflated issues down the road.
If you’re a loyal Hedge IT reader, you may remember we highlighted a few simple dos and don’ts a few months ago that, when utilized, can go a long way in shoring up your firm’s security. To make it easy, we’ve put these tips together into a video. Take a look below and discover a vast range of security tips and tricks from email encryption to proper security measures for protecting computers and mobile devices.
When it comes to the cost of a successful data breach, the ensuing ramifications are not limited to monetary loss. A firm’s confidential information, customer trust and overall operations are all at risk of being compromised. To protect their data and systems from cyber-attacks and breaches, it is critical that firms become as secure as possible.
Raising the Bar
Over the past year, we have witnessed more firms strengthening their security measures in an effort to comply with industry regulations as well as the SEC cybersecurity expectations. Additionally, we’ve seen an increase in frequency and sophistication of both data theft and cybercrime. A study by Risk Based Security revealed that within the first nine months of 2014 there were 1,922 data breaches reported and 904 million records exposed. Four of those incidents have made the Top Ten All time Breach List and three hacking incidents combined were accountable for nearly sixty percent of exposed records. Today, most hedge funds are aware of the severe negative effects a security breach can cause; however, gaining this knowledge may have been a tough lesson to learn.
As hedge funds and investment management firms shore up security practices in an effort to comply with the SEC cybersecurity expectations and other industry and investor standards, it can become overwhelming to sort out what's required and how firms should go about achieving compliance. It can also be easy to make mistakes. We asked Eze Castle's Business Continuity and Data Privacy Manager, Lisa Smith, to tell us about some of the common information security mistakes she witnesses firms make and how to avoid them in the future. Here are some of the key questions Lisa answers:
Where are you seeing the most deficiencies in cybersecurity preparedness?
What goes into an effective Written Information Security Plan?
What common mistakes do you find firms are making when it comes to information security safeguards?
Take a look at Lisa's answers!
How important is day to day communications within your company/firm? If an incident or disaster occurred today, how would your organization respond? Do you have a team or group designated to develop messages for both internal (employees, vendors, third parties, building management) and external (public, employee families, media) contacts? Have they practiced? When the pressure is on, is your organization prepared if a disaster or event suddenly puts your firm under the microscope with an onslaught of internal/external calls, questions, requests, emails, social media messages or media requests?
Crises and disasters continue to happen across borders and industries. Let’s not forget some of the more recent large scale disasters such as Hurricane Katrina, Typhoon Haiyan, Deepwater Horizon, Fukushima, Hurricane Sandy, and, of course, the ongoing major data breaches, just to name a few. That list doesn’t include more common events that may not make the major news networks such as utility failures, office fires, and systems outages. Smaller events like previously mentioned can cause minimal to significant disruption to business operations. This is why developing and practicing a variety of communications is vital in an organization’s response to an incident.
Some of these events can be predicted in advance, giving an organization time to make decisions, analyze other organization’s responses, consider impacts, and communicate a message or action. Sometimes events are sudden, such as an earthquake or active shooter. These events require immediate actions, decisions, and communications to be made. In either case - an immediate or delayed event - communication is critical to demonstrating proper leadership and providing employees with proper direction, especially if the event is centered specifically on your organization.
In any relationship, when things are good, they’re usually pretty good. And when things are bad, sometimes they are really bad. There may come a point when you need to evaluate whether you’re still a good fit together.
Just like with a romantic relationship, your firm’s connection to a service provider (especially an infrastructure/cloud provider you rely on daily) should be strong enough to withstand a few hiccups and healthy enough to warrant open communication at all times. In some cases, it might be clear that you’re in a good place and moving forward together, but sometimes there are sure signs it’s time to call it quits.
Here are a few of those signs:
1. Your provider’s service levels are not up to snuff.
Maybe you recently experienced a major service outage or find that you not-so-conveniently have to work around confusing and interrupting maintenance schedules during work hours. You’re constantly frustrated and don’t feel like you are receiving the level of support that was agreed to – both verbally and as part of your Service Level Agreement (SLA).
Your SLA should clearly indicate the uptime standard (e.g. 99.995% availability) as well as repercussions to any breaches in the contract (for example, service credits) and associated RPOs if disaster recovery is involved
On our recent Hedge Fund Marketing and Due Diligence webinar we looked at how the hedge fund investor due diligence process is evolving especially in terms of scrutiny on technology processes and security safeguards.
The reality is that investors have a greater understanding of technology, are asking more probing questions and care about the responses they receive. We’ve even heard investors say that deficiencies in IT infrastructure and security contributed to the decisions to redeem from or not invest in a fund.
So at Eze Castle Integration we regularly assist our hedge fund clients in completing the IT portions of investor due diligence questionnaires. The wording of questions varies but here is a handy list of 51 common IT due diligence questions we see.
Provide an organization chart for the Company, its affiliates and key personnel.
Provide the physical address and general contact information for each of the Company’s office locations.
Provide the name and contact information of the Company employee(s) assigned to the client’s account(s).
Provide a list of compliance personnel, their roles and qualifications, the date of his/her appointment and position within the Company’s organizational structure.