Recently published research has revealed that asset managers’ cybersecurity preparedness has become a key concern for institutional investors during the fundraising process.
A survey of international asset managers commissioned by fund administrator Crestbridge found that 71% identified cybersecurity as one of the topics raised by investors during the fundraising due diligence process.
According to Crestbridge, the increased interest is a result of the growing reliance on digital processes and the rapid pace of technology development – both of which have left the asset management industry open to various cyber threats.
The threat has also been amplified by the fact that investment funds hold significant amounts of confidential financial data, making them attractive targets for hackers.
Similarly, investors have become increasingly concerned at the prospect of having their investment holdings exposed and the potential financial and reputational damage that could entail.
“As the financial services sector continues to embrace digital technologies, the importance of cybersecurity in the fund management industry cannot be overstated,” said Shaun Davies, director, client operations, for Crestbridge.
“The [survey] results indicate that investors are acutely aware of the potential risks and are seeking fund managers who prioritise cybersecurity.”
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