Cyber Risk Exposure from Third-party Asset Managers: What You Need to Know

Over the past few years, cyber risk has gained prominence on the agenda of institutional investors, and it is a rapidly evolving issue. While much of the media attention to cybersecurity breaches has focused on incidents where large volumes of personal information have been stolen (such as social security numbers or credit card information), cyber risks exist even within organizations that do not typically handle large volumes of personal data. These risks can include phishing scams, ransomware attacks, or other network breaches.

In this white paper, we focus on some of the cyber risks associated with multi-manager portfolios—specifically those to which institutional investors are exposed by using third-party asset managers.

In particular, we consider the following:

• Types of cyber risks that may be present;
• Steps that can be taken to help mitigate these risks; and
• Aon’s approach to assessing third-party investment managers’ cybersecurity controls, policies, and procedures.

This piece focuses on cyber risks from outside investment managers. We recognize that many institutional investors, such as the plan administrators for pension plans, are also exposed to cyber risks. That is beyond the scope of this piece, although Aon has the capabilities to develop solutions in these areas.

To learn more, download the full whitepaper above. 

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