The rising trend of insisting on crisis preparedness reaches the investment industry
Last year we saw widespread insistence by insurance providers that the insured have crisis management plans in place, and now it looks like other industries are hopping on board in force.
Here’s a look at new requirements being put forth by investment services, from a Pensions & Investments article by Rick Baert:
An increasing number of requests for proposals now require firms to detail their cybersecurity procedures, the result of heightened concerns of the potential for data breaches and hackers.
“There are differences in cybersecurity procedures among providers, but now this has become an important part of everyone’s due diligence,” said Gregg Sommer, Chicago-based principal and head of operational risk assessment at Mercer Sentinel, the investment operations consulting business of Mercer LLC. He said that what once was considered only best practice among asset owners, with due diligence focusing on only the largest money managers, is now “a market practice, where cybersecurity information is required by all plans from all providers.”
Watch for this to become the norm across many industries as the people putting money up realize how important it is to be protected from and prepared for crises of all kinds.
Erik & Jonathan Bernstein