The New York Hedge Fund Roundtable
1375 Broadway, 3rd Floor, New York, NY 10018
P: 646-278-6739 www.nyhfr.org
FOR IMMEDIATE RELEASE
Contact:
Britt Erica Tunick
media@nyhfr.org
Tel: 646-283-3244
Hedge Fund Industry’s Biggest Concerns Over Cyber Security Lie
in Potential External Attacks &Security Practices of Employees
NEW YORK, NY, April 27, 2015 – In the wake of heightened activity regarding hackers
targeting financial institutions, members of the New York Hedge Fund Roundtable indicated that
their biggest concerns about protecting sensitive information lie in the possibility of external
attacks and lax security practices among employees.
Cyber Security was the focus of the Roundtable’s April event, where a panel of industry experts
discussed the challenges of fending off increasingly sophisticated hackers, malware and
ransomware that is able to morph on an almost daily basis. “Security breaches have become an
unfortunate reality for the hedge fund industry, so it is an issue that needs to be at the forefront –
particularly amidst heightened regulatory oversight of security in general,” said Timothy P.
Selby, President of the New York Hedge Fund Roundtable. “We want to make sure that
Roundtable members have an avenue for learning about and discussing the most important issues
in the industry.”
Given the speed at which malware and ransomware programs have been evolving, panelists
agreed that there isn’t a company in existence –whether in or out of the financial industry– that is
invulnerable to attack. As one panelist put it: “There are two kinds of companies: those who’ve
been hacked, and those who just don’t know it.”
As part of the event, the Roundtable conducted its latest monthly survey on Cyber Security.
Following are some of the key findings of that survey:
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When it comes to identifying the biggest risks in protecting sensitive information, 48% of
respondents cited the potential of outside attacks; 32% cited lax practices among
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employees; 14% said the possibility of involuntary internal security breaches and 6%
pointed to the failure to encrypt sensitive data.
36% of members responding to the poll indicated that they believe their firms do not have
adequate firewalls and anti-virus software programs in place to fend off serious risks.
Only 60% of respondents said their firms allow employees to use removable media, such
as USB plugs.
Only 40% of respondents said that their firms use third party providers to secure their
systems. Of those who do outsource security, 69% indicated that they believe the key
decision makers in their firms are truly aware of the risks outsourcing creates.
When asked whether their firms have increased the amount of money they allocate to
cyber security over the past two years, 63% of respondents said they had; 21% indicated
that their firms have added full-time IT staff and only 16% of respondents said they
believe their firms were already allocating sufficient money to the issue.
April’s “bonus” question: When asked how they believe the final season of Mad Men will end,
30% of respondents believe Don & Peggy will end up together; 28% believe Don will wake up
next to Betty and everything will have been a dream; 26% believe the show will wind up in the
80’s with Peggy running the entire firm and 16% think that everyone will have died from either
lung cancer and/or alcoholism.
About The New York Hedge Fund Roundtable:
The New York Hedge Fund Roundtable is a non-profit organization focused on promoting ethics
and best practices within the alternative investment industry. The membership consists of
investors, fund managers and other industry professionals who regularly meet to discuss current
issues within the industry and connect with peers. Monthly events center around thoughtprovoking speakers and panels designed to keep members apprised of timely and important
issues within the alternative investment industry. The Roundtable’s goal is to provide a forum for
thought leadership, where industry professional have the opportunity to enhance their knowledge
and skills and to network with other individuals committed to advancing the industry with the
highest ethical standards. For additional information about the Roundtable, visit:
http://www.nyhfr.org
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