A new survey of 88 assets managers showcases their intentions to invest more in cyber-security this year.

Half of asset managers plan to beef up their cyber-security this year amid rising concerns around data breaches in an industry tied to trillions of dollars, new research shows. 

A new survey by Osney Media and BlackBay Communications carried out at The Summit for Asset Management in London found investments in cyber-security were set to grow in 2018, as 50 per cent of asset managers said their organisation planned to increase expenditure on digital defenses. A third (33 per cent) said cyber-security improvements were a “key business priority”. 

“Cybersecurity is clearly in focus for asset managers right now,” Jonathan Wiser, director at Osney Media, said. “Not only is it firmly on the agenda for regulators, but with the vast majority of firms turning to technology to enhance the services they offer to customers and drive down costs, they need to make sure they have appropriate cyber defences in place. The potential operational and reputational risks from a breach are immense.”

The cost of a data breach

The survey’s findings follow a spate of high-profile cyber-attacks and data breaches in 2017 across numerous sectors. Experian, the credit rating agency, for example, was hacked last year, exposing the personal data of 145 million US citizens in a major breach that sent its share price sliding.

In Europe, the stakes will soon be particularly high as reforms to data protection laws known as GDPR enter into force in May. Under the new rules, regulators can impose fines of up to €20 million or 4 per cent of a firm’s annual turnover – whichever is higher – if they fail to report cyber-attacks within 72 hours. 

Data breach cost per capita

Nearly two-thirds (65 per cent) of senior asset managers thought cyber-crime posed a greater threat this year than in 2017, according to the survey. In comparison, just 2 per cent thought the opposite.