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In the News Press Release

Manager Data in Peril from Growing Cyber Threats

Publisher: FundFire
February 26, 2019

Jed Davis was quoted in an article, "Manager Data in Peril from Growing Cyber Threats," published by FundFire, a Financial Times news service for professionals working in the high net worth and institutional investment management industry. The article discusses increased risks in data security lapses for asset management firms. As reported in the article, the Securities and Exchange Commission (SEC) has made cybersecurity a top priority for examination and enforcement actions this year, and managers must also be aware of state, federal and international laws related to cyber incidents and data privacy. In addition, GDPR and the California Privacy Act have heightened the potential legal risks of failing to protect client information.

"When, as is almost inevitable, some kind of incident will arise, the organization is at risk of being caught flat-footed," if it has "not previously thought about what information it holds that's at risk, how will it safeguard that information and what will it do at the sign of compromise," Davis told FundFire. The article also notes that if a data compromise occurs, a firm needs to quickly react and determine its obligations to report the incident accordingly. "Every company that is regulated really needs to do a real risk assessment," advises Davis. That includes evaluating what kinds of sensitive data they are accumulating, whether they can reduce that, who they would turn to for outside assistance if there is an incident, and who internally, beyond the IT department, would be responsible for handling this, he added.

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