The Internet of Things (IoT) is what allows us to connect all of our devices to the Internet - these devices that we use every day to make our lives easier, more efficient and, most of the time, safer. IoT devices can be usually be monitored or controlled from a remote location. For example, we use baby monitors and cameras to watch over our kids and houses, apps to control the temperature and lights in our homes, and webcams chat with long-distance friends or conduct business meetings and interviews. Although there are enormous benefits to streamlining and connecting these devices across both business and personal settings, the Internet of Things can also pose a real threat to the security posture of both an individual and an organization.
Like the recent DDoS attack which brought down major sites such as Twitter, Reddit and Netflix, sophisticated hackers can take advantage of these everyday IoT devices to gain access to networks and sensitive information. For example, hackers can release malicious malware onto the Internet that looks for vulnerable devices, including IoT devices. Once a device or devices are detected, the malware is then able to get into the network and cause disruptions, potentially leading to users losing control of functionality, shutting down of websites, or theft of information.
One concern is that when developers design IoT devices, they often overlook the software needed to protect consumers. In many cases, they may be more concerned with functionality, design and the value said device will bring to users. IoT devices are easy to attack because they usually connect to the Internet by default and use stock code from open source software. Developers also can’t assume that consumers know the risks they face when using IoT devices. While robust security features, such as firewalls, can't truly be installed within IoT devices themselves, in the future designers need to pay closer attention to security to prevent devices from becoming easy targets.
In Part Three of our Risk Outlook Webinar Series, Michael Corcione, Managing Director of Cordium, spoke about compliance and cybersecurity trends in the investment industry. Although cybersecurity risks and struggles can vary from firm to firm, it is important to address a number of key areas.
Continue reading for quick takeaways or scroll down to watch the 30 minute video replay.
Good security can be achieved as firms move from reactive to proactive strategies. Firms usually start with the goal of checking the box for regulators, but they need to get beyond the 'check-the-box' exercises and test controls. The SEC’s 2015 cybersecurity guidance update provided more specific insights on cybersecurity focus areas for investment firms - governance and risk assessments, training and awareness, incident response, data loss prevention, access rights controls, and vendor risk management. Hedge funds and investment firms should use this as a framework, understand how they have addressed these areas and where they need to improve.
A good cybersecurity program starts with the leadership team, and they need to set the tone from the top down. This way everybody understands the impact of risk and its effects on the firm. Leaders should acknowledge risk, understand risk, and lead ongoing discussions firm-wide.
During Part 2 of our Risk Outlook Webinar Series we spoke with Eze Castle Integration Director Dan Long about how investment firms should address evolving cybersecurity risks, third party service provider oversight and employee training and education. Many of the points Dan addressed highlight questions hedge funds and private equity firms should be asking themselves.
Read on or scroll to the bottom to watch the full, 30-minute replay.
What is our commitment to cybersecurity and what is our outlook on the future?
Regulators and investors continue to ask more questions about cybersecurity because they want to know that firms are effectively mitigating risk. To meet these growing expectations, firms must demonstrate that you take cybersecurity risk seriously and have implemented sound systems, policies and procedures to combat those risks. As the threat landscape and technology continue to evolve, investment management firms need to evolve accordingly and develop better ways to counteract threats. Firms don’t necessarily need to implement every available security technology, but they should be keenly aware of their options and have a plan to effectively mitigate as much risk as possible.
How are we addressing third party risk and oversight?
Investment management firms often rely on third party vendors to obtain functionality or capabilities that they need, want or can’t afford to produce on their own. But moving functions out of the firm's control can present challenges. With any outsourced function, the firm inherently takes on additional risks at the hands of the third party. But it's critical for investment managers to limit those risks through sufficient due diligence. To combat vendor risk, financial firms need to maintain strict oversight of all third party relationships and investigate security practices and protocols, particularly for those vendors who have access to the firm's confidential information. An outsourced vendor should be providing the same level of security (or better!) as your firm would if the function was under in-house control.
Private equity firms have been slow to embrace outsourcing, but managing data and technology is more complex than ever. With increasing regulatory requirements and a growing urge to focus on core competencies, PE firms are shifting their views of the back office. In case you missed our recent webinar on 'The Transformation of Private Equity Operations', speakers from Citco Fund Services and Eze Castle Integration examined the changing tide for private equity operations and how CFOs, CTOs and fund managers alike can control operating costs, maximize efficiency and better perfect operational workflows.
Drivers for change.
The number one reason for managers to make the switch to an outsourced solution is the desire for managers to get back to their roots. The idea of back office transformation is really founded in that managers have found themselves spending much more time doing everything but raising money and investing money.
Beneath this layer, back office transformation is also driven by regulation, investor transparency, the lifecycle of a private equity firm, and global reach. Slow adoption, fast results. The private equity sector has been slow on the uptake when it comes to outsourcing, and we contribute this lag due to lack of education on the process and benefits of outsourcing. In the past three to five years, adoption in the PE space has increased because it is cost effective, secure and feature rich. Private equity firms that have made the switch wonder why others are not doing the same. The idea of leveraging an experienced managed service provider is one that private equity firms have really embraced because there is no burden for firms to hire and attract talent, which can be challenging and expensive.
The day that many Apple users wait for every year finally came - the release of the newest Apple products. From the latest iPhone to the all-new Airpods, Apple had a lot to share with us yesterday afternoon. We’ve recapped some highlights below.
Watch Series 2
Unlike the Watch Series 1, the Watch Series 2 now has a built-in GPS and is water resistant. The new processor will now be in the Watch Series 1 and the Watch Series 2, but there will be a $100 price difference between the two models.
The new iPhone 7 introduces a new camera, better performance, longer battery life, stereo speakers, the brightest display yet, and it’s the first water resistant iPhone. iPhone 7 and iPhone 7 Plus are splash, water, and dust resistant and were tested under controlled laboratory conditions with a rating of IP67 under IEC standard 60529. Battery life and charge cycles vary by use and settings, but the iPhone 7 and & 7 Plus have been tested to hold a charge up to one (7 Plus) or two (7) hours longer.
Strangely, Apple seemed quite excited to announce the introduction of two new colors - black and jet black.
The biggest change for iPhone users is the elimination of the audio port. Stepping in are AirPods, Apple’s version of wireless headphones. The iPhone 7 will come with traditional EarPods that are connected through the lighting connector (goodbye, headphone jack!), or you can use an old set of headphones using the provided adapter. AirPods are an additional cost ($159).
As we work with clients on completing due diligence questionnaires (DDQs), one increasingly common question is, “does your firm block access to data sharing sites such as DropBox or Google Drive?”
Generally the answer to this question should be ‘Yes,’ but that isn’t always the case because public file sharing services such as these are very convenient, and firms may overlook the security risk they pose. Additionally, employees accustomed to using Dropbox for personal use may be tempted to go for convenience over security when they need to share a large file or data set.
However, with security threats multiplying exponentially, hedge funds and alternative investment firms need to be proactive in protecting data and personally identifiable information (PII) from accidental and malicious insider risks. That’s why for secure file sharing Eze Castle Integration includes Varonis' DatAnywhere product as a standard feature within our Eze Managed Suite. Varonis' DatAnywhere offers users seamless and secure collaboration and file sharing across devices.
Beyond security, Varonis' DatAnywhere is easy to use. Users receive the same drag-n-drop experience as shared network drives or a cloud sync folder, which means no need for training on complex user interfaces and collaboration workflows. Additionally, data is automatically backed up and version controlled.
Cloud, Cyber Security and Managed Services: Putting Eze Castle Over the Top in Waters Rankings (Video)
We're thrilled to share that Eze Castle Integration has won the coveted awards for Best Cloud Infrastructure Provider and Best Cyber-Security Provider in the 2016 Waters Rankings. Vinod Paul, Managing Director of Eze Castle Integration, spoke with Dan DeFrancesco, Deputy Editor of Sell-Side Technology and Waters Technology about how Eze Castle Integration differentiates itself from other cloud and security providers.
Watch Vinod's video interview below or scroll down for some quick takeaways.
As a hedge fund or investment management firm, you’re juggling a lot. Hedging bets, pitching investors, running day-to-day operations – there’s a lot on your plate. That’s why working with an experienced cloud services provider can offer benefits beyond just infrastructure.
Let’s take a look at three different ways your cloud services provider can de-stress your busy life and provide you with much needed value.
1. Free up your space.
One of the beauties of a cloud computing environment is the near elimination of physical hardware and equipment on-site at your office. When managing your own server room or Communications (Comm.) room, you are responsible for housing a variety of equipment such as servers, UPS units, networking equipment and cables, spare parts, etc. Not to mention you need the real estate for it all. And don’t forget – much of this equipment runs on a three-year refresh cycle, which means you’ll have to upgrade everything in the near future.
If you’re one of the seemingly few firms who has yet to make the move to the cloud, it could be for a variety of reasons. Perhaps you want to maintain total control of your IT environment. Or maybe you’re waiting for a tech refresh to motivate you. Alternatively, it could be that you just haven’t made the proper case to management for switching to the cloud – and many times the one who really needs convincing is the Chief Financial Officer (CFO).
If you’re the Chief Technology Officer (CTO) or IT Manager, your responsibility is determining the infrastructure choices that are going to best suit operations at your firm. But those priorities may not line up exactly with those of the firm’s CFO. IT doesn’t always have insight into the financial ramifications of an operations decision of this magnitude. Instead they are typically focused on the other benefits including personnel reallocation, workflow efficiencies, etc.
The CFO, on the other hand, is ultimately tasked with ensuring the company’s financial decisions are appropriate, and therefore, it’s often advantageous to at least attempt to speak his/her language when pushing for an IT change.