HFSB Holds Cyber Attack Simulation Roundtable for Hedge Fund Managers
HFSB Releases Lessons Learned From First Cyber Attack Simulation
The Hedge Fund Standards Board (HFSB), the standard-setting body for the hedge fund industry, has held its first table top cyber-attack simulation for hedge fund managers in London.
The objective of the simulation was to explore the response of hedge fund managers to three realistic cyber-attack scenarios: data theft and leakage of internal sensitive data; financial infrastructure attack; and crypto ransomware. The simulation highlighted that confusion over responsibilities can prevent an effective response to a cyber-attack and that managers should not consider cyber security as just an IT issue, given the legal, compliance, investor relations and reputational issues involved.
One hedge fund manager, who attended the event, noted: “This event has been an eye-opener regarding the complexity when dealing with the fallout from a cyber-attack, and very timely in light of the heightened regulatory focus, including the SEC’s intention to test firms’ implementation of cyber security procedures and controls. We will revisit our own approach based on the lessons learned.”
Thomas Deinet, Executive Director of the HFSB, stated: “This is the second large-scale initiative by the HFSB in the area of cyber security, following the publication of the cyber security memo in September 2015. Simulation exercises are a very powerful approach to sharpen one’s understanding about how incidents can unfold. We encourage managers to revisit the HFSB Cyber Security Memo for helpful guidance."