How ready are institutional investment firms to prevent data breaches and mitigate damage in the event of a cyberattack?
On Tuesday, Backstop Solutions Group, which provides cloud-based solutions for institutional investors, reported that 77% of respondents in a new survey considered cybersecurity as at least "an important" priority in their firms.
More than a third of respondents claimed cybersecurity was a top priority, while only 4% minimized its importance.
Backstop questioned leading institutional investors about their firm's budget allocation to address new threats and their confidence in their firm's ability to recover from a potential attack as a way to allow them to benchmark their preparedness against their industry colleagues.
"As cybersecurity threats continue to rise, the financial consequences of a breach can wreak havoc for fund managers and multi-managers," Backstop's global marketing manager, Chris DeNigris, said in a statement.
"Institutional investors have proprietary client information, and not having preventive measures in place can lead to long-term reputational damage for the firm."
Cybersecurity experts recently discussed best practices for responding to and lessening the effects of cyberattacks.
