Improving cybersecurity is one of the key business priorities for global asset managers according to a new report.
With the perceived threat of attacks on the up, bolstering cybersecurity operations are a key business priority for 33% of asset managers, according to a new report from Osney Media and BackBay Communications.
The report found that two-thirds (65%) of the senior asset management professionals surveyed believe that the threat posed to their organisation from cybercrime this year is greater than in 2017; this compares with just 2% who said it is less of a threat.
With the priority on the up, investments to improve cybersecurity measures by the asset management industry is also expected to increase. Half (50%) of respondents said their organisation plans to increase expenditure in this area this year.
For firms with clients and operations in the EU, the introduction of GDPR, the new European data protection regulation, in May will also cybersecurity. Under new rules, regulators are able to impose fines of up to €20m to firms that fail to report cyber-attacks within 72 hours.
“Cybersecurity is clearly in focus for asset managers right now,” said Jonathan Wiser, Director at Osney Media, which commissioned the study and organises TSAM London. “Not only is it firmly on the agenda for regulators, but with the vast majority of firms turning to technology to enhance the services they offer to customers and drive down costs, they need to make sure they have appropriate cyber defences in place. The potential operational and reputational risks from a breach are immense.”
The report also reveals that 66% of respondent firms are currently undergoing a digital transformation project – to incorporate new technologies into the heart of their business operations and processes – with a further 18% planning such a project. The main reasons cited for such projects were to improve or automate middle- and back-office processes (71%), improve fund distribution and enhance the client experience (65%), and improve research and investment decision-making (35%).
Copyright © 2018 RegTech Analyst
Copyright © 2018 RegTech Analyst
