Half of private Equity firms are not satisfied with their current cybersecurity arrangements according to a recent survey.
The latest industry survey from Augentius found that 51 per cent of PE and Real estate managers are less than satisfied with their current level of cybersecurity.
The research is based on a survey of firms across the globe, highlighting the extent to which managers prioritise investing in their businesses’ technology.
With just over half of the managers surveyed being less-than satisfied with their firm’s current level of cybersecurity, 54 per cent of managers identified cybersecurity as one of their top two priorities for technology investment this year.
Due to an increased degree of regulatory burden on the European side, with both AIFMD and the more recent GDPR carrying stringent data management and reporting obligations, 56 per cent of the respondents said they are investing in data management/cloud.
The survey also found that 17 per cent would be investing in AI machine learning, while just 7 per cent saw a need to plough capital in RegTech.
Ian Kelly, group CEO of Augentius, said: “There are positive signs that regulator warnings about the rising threat of cybercrime are getting through to the industry and having the desired effect on investment in this area. However, with half of the industry less than satisfied with their arrangements there is clearly still some road left to travel – regulators have been clear that there isn’t any room for half-measures on this front.”
Looking over a longer timeframe, the research also asked managers which areas of innovation they felt were most likely to transform the way they do business. Data management and cloud services emerged as the most popular answers.
However, while not a spending priority at present, over half of the managers highlighted the AI and machine learning as an area that could have a large impact on how private equity operates in the coming years. The potential impact of RegTech was the lowest, with just 5 per cent.
Kelly added: “While the industry is shifting to embrace technology in culture and attitude, a gap in the necessary expertise presents a challenge. This internal lack of technology leadership and skill is understandably a problem for many smaller firms, given the prohibitive cost of building up in-house expertise from scratch. For many managers, partnering with a trusted third party is the optimal route, so they can focus on the core job at hand.”
Copyright © 2018 RegTech Analyst
Copyright © 2018 RegTech Analyst
