Private Equity And Cybersecurity: A Guide To Preparing For And Responding To A Breach

A cyber breach can have serious legal, financial, and reputational consequences for a fund sponsor, as described in our previous post. As such, cybersecurity threats must be treated as business risks, not just a potential IT problem. Senior management at fund sponsors should take the lead to ensure that the sponsor is taking appropriate actions to protect itself against cyber risks. There are several steps that senior management can guide the fund sponsor to take to prevent breaches from occurring and to mitigate the impact when they do occur.

Be Prepared

Careful planning and preparation, including appropriate policies and procedures, is critical for the creation of an effective cybersecurity program. The program should include a Cyber Risk Assessment and a Cyber Incident Response Plan.