Backstop Survey Reveals Increased Focus on Cybersecurity for Institutional Investors
Chicago, March 8, 2016 - Backstop Solutions Group, a leading provider of cloud-based solutions for the institutional investment community, today released the results of a cybersecurity survey. A sample of leading institutional investors were questioned about their firm’s prioritization of cybersecurity, their budget allocation to address new threats, and their confidence in their firm’s ability to recover from a potential attack.
“With barriers to entry getting lower, the threat of cyber-attacks is only growing,” said Michael Neuman, Backstop’s Head of Information Security. “It’s crucial that firms look at their preparedness and create an integrated plan that readies the company to fight these attacks.”
Backstop surveyed a group of leading investment managers and allocators on the following criteria:
- The level of prioritization for cybersecurity prevention at their firm
- The percentage of budget increase their firm allocated to cybersecurity over the last year
- The level of confidence in their firm’s recovery plan
“As cybersecurity threats continue to rise, the financial consequences of a breach can wreak havoc for fund managers and multi-managers,” added Chris DeNigris, Backstop’s Global Marketing Manager. “Institutional investors have proprietary client information and not having preventative measures in place can lead to long term reputational damage for the firm.”
The results of this study revealed a growing concern for data security:
- Over 34% of respondents claimed that cybersecurity is a top priority for the firm, while only 4% said it was not a priority.
- 77% of respondents listed cybersecurity as at least “an important” priority.
- 43% of respondents said their firm had increased its budget for cybersecurity including prevention.
Despite the overwhelming percentage of respondents stressing the importance of information security, some firms still feel a lack of preparedness in their protection against and ability to recover from attacks:
- Over 10% of respondents expressed a lack of confidence in, or transparency around, their firm’s recovery plan in the event of a cyber-attack.
- Less than 20% conveyed complete confidence in their firm’s recovery plan.
The results of Backstop’s survey shed light on the readiness of the institutional investment industry to prevent breaches and mitigate damage in the event of an attack. With this data, institutional investors can benchmark their preparedness against their colleagues in the industry.
About Backstop Solutions Group
Backstop Solutions Group is a leading provider of cloud-based financial technology solutions for hedge funds, funds of funds, pensions, endowments, private equity firms, consultants and family offices. Founded in 2003, Backstop created the industry’s first web-based software that helps firms in the alternative investment management industry operate more efficiently, invest intelligently and communicate effectively. With offices across the United States and in Europe and Asia, Backstop now serves over 670 firms worldwide, making it one of the fastest growing software providers in the financial services industry. For more information visit www.backstopsolutions.com. Follow us on Twitter @Backstop.