With high value digital information such as client securities and banking records, proprietary research and trading algorithms and trading strategies, investment management firms of all sizes are attractive targets for cyber criminals.
Attacks can lead to IT security breaches that damage a firm's reputation, expose it to losses and costly litigation, and compromise intellectual property.
Many are not prepared to be on the "frontlines"of data protection and information security where they face not only financially motivated cyber criminals, but even politically or socially motivated hacktivists. Investment management firms that do not invest shrewdly in information security services can see investment capital erode rapidly due to reputational damage incurred as a result of a security breach.
Additionally, more investors and trading partners, such as prime brokers, are calling for the firms they work with to improve information security policies and implement a proven incident response plan.