Launching and sustaining a hedge fund startup is no easy feat. With any business venture comes trial and error, and success and failure. As startups expand and grow, they tend to bring in new personnel and invest in software systems, computers and most likely office space. However, businesses tend to overlook a crucial element to successful evolution.
What is this top-line priority often neglected in expansion plans? Find out in today’s blog article.
Did you know that any hack, regardless of size, can result in incurring costs, expenses and irreparable damage to your company? According to a report from Hiscox, 65% of small businesses fail to act upon a cybersecurity attack.
Which brings us back to our first point: The significant factor increasing business risk during business expansion is when firms overlook evaluating their cybersecurity procedures currently in place, making them more vulnerable to cyber-related incidents.
So, what can hedge fund startups do to better mitigate, detect and prevent cyber-attacks? We’ve outlined some actionable cyber security tips and best practices to help secure your startup’s future:
1. Shift your Cybersecurity Strategy to a more Holistic Approach
One of the most prominent mistakes startups make is setting up their security measures on a device-by-device basis. If a hacker can break into a single device, then the entire network is most likely going to get infected too.
Instead of sticking to a security by device tactic, establishing a more holistic approach for your business allows you to bolster defenses against cyber threats company-wide.
2. Educate Your Employees with Cybersecurity Awareness Training
Having a fully integrated security awareness training program as a part of your growing business model will provide staff with the necessary tools to identify risks and better protect your assets. Cybersecurity programs should involve all levels of your organization and can come in various forms, such as discussion forums, online gaming, in-person training and mock phishing exams. Aside from educational models, cyber security awareness training should feature reporting capabilities and quantified metrics, so you can measure the success and progress of the program.
As a best practice, we recommend looking for an IT partner that will customize cybersecurity training to the particular requirements and concerns of your business. A data breach can dissolve any confidence clients or partners may have in a company, so it’s important that training becomes a vital part of the onboarding process and continue in an ongoing matter.
3. Incorporate a Password Protection Policy
Having a robust password protection policy in place is critical for helping keep company information private and uncompromised. Having two-factor authentication, a password manager and file permissions for various data will strengthen security protocols and enforce procedures in place.
Employees should never share password information over email, phone or messenger app. Furthermore, file permissions should be restricted to only those members that need access to specific company data. Granting access to highly confidential information to everyone in your company can drastically increase the risk of it falling into the wrong hands.
4. Invest in a Cybersecurity Program
Employing a cybersecurity service provider is a long-term investment in your company’s future, yielding numerous benefits that far outweigh the costs associated with not implementing a security program.
Hedge fund startups should seek a Cybersecurity Advisory Practice that will develop a cybersecurity risk management program tailored to their business’ unique risk profile and monitor systems 24x7x365.
Conclusion
Keeping cybersecurity risk management as a top-line business priority for hedge fund startups and outsourcing this responsibility to experts will present both immediate and long-term benefits for the business:
- Access to subject matter experts specializing in cybersecurity, risk management, regulation, technology, legal and more.
- Adequate resources are available to thwart cyber-threats.
- Advanced technology is in place to safeguard the firm’s sensitive business information and IP.
- Empowered with security knowledge and aware of the latest threats, employees evolve to become the firm’s first line of defense.
- Security procedures are updated and understood company-wide.
- Creating an effective cybersecurity program can satisfy regulators, attract investors and provide a competitive advantage.
Align Cybersecurity™, the company's comprehensive cybersecurity risk management solution, provides legally sound, regulatory compliant and workable solutions that are continuously monitored, periodically tested and annually evaluated and enhanced.
For more information about these services and how your hedge fund startup can integrate cyber security into its business model, contact us here (https://www.align.com/speak-to-a-cybersecurity-expert), or by clicking on the button below.
