Did you know that the average cost of a data breach is $3.8 million? Or, that the consolidated average cost incurred for each record of lost or stolen sensitive and confidential information has increased six percent (6%) since 2013 from $145 to $154? A recent study of 350 companies spanning 11 countries reported the aforementioned statistics, representing a twenty-three percent (23%) increase in data breach consolidated costs.
Welcome to the third installment of our SEC Cybersecurity Guidance Update video series. Our third (and last) video covers what the SEC is telling registered investment advisers about having written information policies and procedures. You can watch the first two videos below or HERE and HERE.
In Part 1 of the SEC's recent cybersecurity guidance update, the regulatory body highlighted the need for cyber risk assessments across multiple areas of a registered firm's organization. Continuing to address how firms should prepare for security incidents before they occur, Part 2 of the SEC's guidance update focuses on how hedge funds and registered investment advisers should prevent, detect and respond to security incidents.
Take a look at the latest installment of our video series or scroll down to read a brief recap.
Categorized under: Security Launching A Hedge Fund Cloud Computing Disaster Recovery Hedge Fund Due Diligence Hedge Fund Operations Hedge Fund Regulation Infrastructure Communications Outsourcing Business Continuity Planning Trends We're Seeing Videos And Infographics
We are excited to release the first in Eze Castle Integration's three part SEC Cybersecurity Guidance Update video series.
In case you missed it, in April 2015 the SEC issued a Guidance Update on Cybersecurity Risks and Expectations for registered investment companies and registered investment advisers. The three point guidance update addresses the need for Cybersecurity Assessments, Strategy and Written Policies plus Procedures.
So to get you up to speed quickly, we’ve created this video series. In this first (90 second) video we cover SEC cybersecurity guidance around conducting periodic risk assessments. Be sure to come back next week for our next two videos.
HFMWeek catches up with Eze Castle Integration’s managing director, Bob Guilbert, to discuss why so many funds are opting for cloud solutions and how the industry can work together to tackle cyber crime.
HFMWeek (HFM): What are the security implications of moving to a cloud system?
Bob Guilbert (BG): Firms looking to move to the cloud need to consider which provider is right for them and can service their operational and security needs. A firm needs to consider the security protocols in their office as well as in the cloud and work with someone that covers both sides, including the virtual and physical elements. It’s also vital that firms understand the ‘response and remedy’ services that cloud providers offer, the quality of which can vary hugely between public and private clouds.
If you missed our 'Starting a Hedge Fund' webinar last week, you missed a lot. Luckily, our webinar replay is available here, and we're now onto Part Two of our recap. If you missed Part One - which focused on the structural and formation basics of starting a new hedge fund - click here. In Part Two, we're recapping what our very own Managing Director Vinod Paul covered, specifically around IT infrastructure decision-making, cybersecurity protections and common technology mistakes.
2015 Technology Priorities
Before looking at the specific technology infrastructure components emerging managers should consider before and during the launch phase, let's first cover some large-scale IT priorities for startups in 2015. We've identified three major priorities:
Selecting the right service providers. Whether it's outsourcing IT, administration or another critical function, it's imperative for startups (and successful hedge funds in general) to conduct proper due diligence and forge partnerships with providers that offer flexibility and accountability.
Understanding your firm's vulnerabilities and exposures. Security, security, security. It's the most critical area of focus for hedge funds in 2015. Firms should understand what risks could affect their businesses and the safeguards in place to mitigate those risks.
Employing an infrastructure your firm can grow with. You're a startup, yes. But you can't afford to act like a startup, at least when it comes to your technology. Selecting an infrastructure platform and provider that can grow with your firm and support you 2, 5, 10 years down the road is critical to your success, and will save you money and headaches in the long run.
Categorized under: Launching A Hedge Fund Cloud Computing Disaster Recovery Security Hedge Fund Due Diligence Hedge Fund Operations Hedge Fund Regulation Infrastructure Communications Outsourcing Business Continuity Planning Trends We're Seeing Videos And Infographics
Yesterday, we hosted a hedge fund launch webinar called “A Checklist for Starting a Hedge Fund in 2015,” which focused on structure and strategy considerations for hedge fund startups as well as focus areas for your technology infrastructure and cybersecurity systems. Marni Pankin, partner at Marcum LLP, and Vinod Paul, managing director at Eze Castle Integration, shared their expert knowledge on what they consider to be the top priorities for hedge fund startups in 2015.
Pankin started with a checklist of her own, including what an emerging manager should look for when launching a new hedge fund. Below is a brief summary of her checklist and be sure to read our second article, "Starting a Hedge Fund: Your IT and Cybersecurity Checklist" here.
Categorized under: Launching A Hedge Fund Cloud Computing Disaster Recovery Security Hedge Fund Due Diligence Hedge Fund Operations Hedge Fund Regulation Infrastructure Communications Outsourcing Business Continuity Planning Trends We're Seeing
We were honored to be invited to participate in an exciting event in Boston recently hosted by KPMG. The event, Hedge Fund Symposium 2015, featured a lively panel on cybersecurity to kick off the afternoon. Featuring speakers from Eze Castle Integration, Morgan Lewis and The Baupost Group, the panel discussed the changing cybersecurity landscape for hedge funds and alternative investment firms and shared best practices on how to mitigate risk in this evolving climate. Following are some of our favorite highlights from the event.
Malware is seemingly the most common threat to financial firms and can infect a firm’s network as a result of improper use of removable storage media (USB devices), opening of suspicious hyperlinks and attachments or more advanced ransomware technology (think Cryptolocker virus).
Spear-phishing and social engineering campaigns are also extremely prevalent and can cripple even the most technology-savvy firm. Ultimately, these campaigns are best prevented through proper user training and awareness around information security.
In our latest webinar, “Understanding Written Information Security Plans," Eze Castle Integration’s resident WISP expert, Lisa Smith, shares insights into the development and maintenance of WISPs, including the basics of what a Written Information Security Plan (WISP) is and the stages that a firm’s WISP goes through. Continue reading for a recap or scroll down to watch the webinar.
What is a WISP?
A WISP is a formal documentation of a firm’s plans and systems put in place to protect personal information and company sensitive data. It includes both administrative and technical safeguards and identifies confidential information, where it is located, how it is protected, and who has access to it. Technical safeguards include an assessment of current policies such as penetration software and encryption and technical policies like password changes and access control.
This article first appeared on Opalesque as part of a four-part series on cybersecurity.
Ruane, Cunniff and Goldfarb, Inc. used to have their own IT infrastructure. Todd Ruoff, Executive Vice President in charge of trading, operations and technology, was responsible for its maintenance. Then he started looking at outsourced providers a couple of years ago, as he wanted a better disaster recovery solution, the equipment was ageing and the firm was planning an office relocation. His firm is now using Eze Castle Integration’s Private Cloud, the ECINet private Internet service and Eze Castle’s Vault backup and recovery service. He tells Opalesque how that works for him.
Ruane, Cunniff and Goldfarb is an investment advisor and broker-dealer in the US, which manages an $8bn mutual fund, a '40 Act company called the Sequoia fund. The firm has around $5bn managed in hedge funds, and another $15bn in separately managed accounts run for HNWIs and institutions.
"As a broker, we need the ability to trade," Todd Ruoff says. "We are a long-term investor who invests in large, concentrated positions, focused on a few securities. It’s important that we have access to real-time market data, which we get from various sources, as well as access to our trading systems for execution and order management. As an advisor, we need to be able to report for our clients, as well as internal portfolio management teams. All of our research is done in-house, through an organic internal process, whereby our analysts work on the subject companies, which are publicly traded equities. We invest primarily in common stocks in the US, Europe and Asia."