The Latest Cybersecurity In The Asset Management Industry Statistics Explained
Approximately 89% of asset management firms expect cybersecurity to be one of the top risks by 2025, according to Deloitte.
The statistic highlights the growing concern within the asset management industry regarding cybersecurity risks, with approximately 89% of firms anticipating cybersecurity to emerge as one of the top risks by the year 2025. This data, sourced from Deloitte, signifies a significant shift in priorities for asset management firms, who are increasingly recognizing the potential threats posed by cyber attacks and data breaches. The projection suggests that firms are preparing to allocate resources and implement strategies to mitigate cybersecurity risks proactively in the coming years, reflecting a heightened awareness of the importance of safeguarding sensitive financial data and protecting against potential cyber threats in an increasingly digitized landscape.
Over 44% of asset management firms face a high level of cybersecurity risk internally.
The statistic stating that over 44% of asset management firms face a high level of cybersecurity risk internally indicates a significant vulnerability within the industry. This suggests that a substantial portion of these firms may be inadequately equipped to protect their data, systems, and operations from potential cyber threats. Cybersecurity risks within asset management firms can lead to various consequences such as data breaches, financial losses, reputational damage, and regulatory implications. It highlights the importance for these firms to prioritize and invest in robust cybersecurity measures to safeguard their sensitive information and maintain the trust of their clients and stakeholders in an increasingly digital and interconnected world.
90% of asset managers plan to increase their spending on cybersecurity measures.
The statistic ‘90% of asset managers plan to increase their spending on cybersecurity measures’ indicates a high level of investment intention among asset managers to enhance their cybersecurity defenses. This finding suggests that asset managers recognize the growing importance of protecting their data and systems from cyber threats, likely driven by the increasing frequency and sophistication of cyber attacks in the financial industry. By planning to increase spending on cybersecurity measures, these asset managers are signaling a proactive approach to mitigating risks and safeguarding their operations, client information, and overall business continuity. This statistic highlights a strong industry-wide commitment to bolstering cybersecurity practices in response to the evolving cyber threat landscape.
35% of asset management firms experienced a cyber incident in the past 12 months.
The statistic ‘35% of asset management firms experienced a cyber incident in the past 12 months’ indicates that a significant portion of firms operating in the asset management industry encountered some form of cybersecurity breach or incident within the specified timeframe. This statistic highlights the prevalence and potential vulnerability of asset management firms to cyber threats, emphasizing the importance of robust cybersecurity measures and protocols within the industry. It suggests that a considerable proportion of firms may have experienced breaches affecting their digital assets, data security, or operational integrity, underscoring the need for ongoing vigilance and investment in cybersecurity defenses to mitigate risks and safeguard sensitive information and assets.
Two-thirds of asset management professionals surveyed believe the cyber security environment will worsen in the future.
The statistic indicates that out of the asset management professionals surveyed, a majority of two-thirds believe that the cyber security environment will deteriorate in the future. This suggests a significant level of concern and pessimism within the industry about the potential risks and threats posed by cyber security vulnerabilities. The belief in a worsening cyber security environment may stem from the increasing sophistication of cyber attacks, the proliferation of technology, and the growing reliance on digital systems and data within the asset management sector. This statistic underscores the urgent need for organizations to prioritize and strengthen their cyber security measures to mitigate potential risks and safeguard their assets and operations in the face of evolving cyber threats.
About 80% of senior IT and IT security leaders believe their organizations lack sufficient cybersecurity protection.
The statistic indicates that a large majority, specifically around 80%, of senior IT and IT security leaders feel that their organizations do not have adequate cybersecurity protection measures in place. This suggests a prevalent concern among IT professionals regarding the level of security within their organizations. The perceived lack of sufficient cybersecurity protection may stem from various factors such as increasing cyber threats, resource constraints, and evolving technology landscapes. Addressing this issue is crucial to improving organizational resilience against cyber threats and safeguarding sensitive data and systems from potential breaches.
52% of asset management companies increased their cyber-related budget by 10% or more in 2020.
The statistic indicates that 52% of asset management companies chose to increase their budget allocated for cyber-related activities by at least 10% during the year 2020. This suggests a significant proportion of asset management firms recognized the importance of improving cybersecurity measures to protect their digital assets and sensitive information against potential cyber threats and breaches. The decision to boost investments in cybersecurity likely reflects a growing awareness of the evolving cybersecurity landscape and the need to stay ahead of potential risks and vulnerabilities in an increasingly digitalized environment.
In Europe, nearly 95% of asset managers are preparing for increased regulations regarding cybersafety.
The statistic that nearly 95% of asset managers in Europe are preparing for increased regulations regarding cybersafety highlights the growing importance of cybersecurity in the financial sector. With the increasing threat of cyberattacks and data breaches, regulatory bodies are putting more emphasis on enforcing stringent measures to protect sensitive financial information and safeguard the integrity of financial markets. Asset managers, aware of the potential risks and consequences of failing to meet these regulations, are proactively taking steps to enhance their cybersecurity practices and systems to ensure compliance and protect their clients’ assets. This statistic underscores the recognition of cybersecurity as a critical aspect of ensuring trust, stability, and resilience in the financial industry in Europe.
64% of asset management companies worry that the executive team at their organization inadequately understands cyber risks.
The statistic indicates that a significant portion, specifically 64%, of asset management companies are concerned about the level of comprehension the executive team at their organization has regarding cyber risks. This suggests that these companies feel there may be a gap in knowledge or awareness among the top leadership about the potential threats and vulnerabilities related to cybersecurity. Such worries may arise due to the highly dynamic nature of cyber threats and the increasing dependence on technology within the asset management industry. This statistic highlights the importance of increasing awareness and understanding of cyber risks at all levels of organizations to better mitigate potential threats and protect valuable assets.
Nearly 35% of asset management firms failed to conduct any cybersecurity risk assessment in the past year.
This statistic indicates that a significant portion, almost 35%, of asset management firms did not perform any cybersecurity risk assessment within the last year. Conducting cybersecurity risk assessments is essential for identifying potential threats and vulnerabilities within an organization’s systems and processes, particularly in the finance industry where sensitive financial data is at risk. The failure to conduct such assessments can leave asset management firms exposed to cyberattacks, data breaches, and financial losses. This statistic highlights the importance for asset management firms to prioritize cybersecurity measures to protect their clients’ assets and maintain the trust and integrity of their operations.
60% of asset firms report their biggest challenge is staying ahead of cyber threat innovation.
The statistic that 60% of asset firms report their biggest challenge is staying ahead of cyber threat innovation indicates that a majority of asset firms perceive cybersecurity as a significant issue that they struggle to address effectively. This suggests that these firms are aware of the constantly evolving nature of cyber threats and the risks they pose to their operations and data security. By highlighting this as their primary challenge, it emphasizes the importance of actively monitoring and adapting to emerging cyber threats to protect their assets, clients, and reputation. This statistic underscores the critical need for asset firms to prioritize cybersecurity measures and invest in strategies to enhance their resilience against evolving cyber threats.
71% of asset managers include cyber-risk under their definition of digital risk, according to a PWC survey.
This statistic indicates that a majority of asset managers, specifically 71%, consider cyber-risk as part of their definition of digital risk, as revealed by a survey conducted by PWC. This finding suggests that a significant portion of asset managers recognize the importance and potential impact of cyber threats within the broader context of digital risks they may face. By incorporating cyber-risk into their definition of digital risk, asset managers are likely taking proactive measures to assess and mitigate potential cybersecurity vulnerabilities in order to protect their assets and investments from cyber attacks and data breaches. This statistic underscores the growing awareness and prioritization of cybersecurity within the financial industry.
48% of breaches suffered by asset managers have links to insider mischief or negligence.
This statistic indicates that nearly half (48%) of breaches experienced by asset managers are connected to insider actions of either misconduct or carelessness. This suggests that a significant proportion of security breaches within asset management firms are not primarily due to external malicious attacks, but rather stem from internal sources such as employees or other insiders. Such incidents could involve intentional actions by individuals within the organization, or negligent behaviors resulting in unauthorized access or data exposure. Understanding and addressing these internal vulnerabilities is crucial for asset managers to enhance their cybersecurity measures and safeguard sensitive information from unauthorized access and potential threats.
About 45% of cyber incidents can cause a potential loss of more than 6000 customer records for asset management firms.
The statistic suggests that approximately 45% of cyber incidents experienced by asset management firms have the potential to result in the loss of more than 6000 customer records. This indicates a significant risk to client data within this industry, highlighting the importance of robust cybersecurity measures to prevent such incidents. The implication is that asset management firms need to prioritize data security and implement effective strategies to safeguard customer information, given the potential impact on both their reputation and regulatory compliance. This statistic underscores the critical need for proactive measures and vigilance in managing cyber threats within the asset management sector.
Only 16% of asset managers have integrated their cybersecurity monitoring with other risk monitoring.
The statistic indicating that only 16% of asset managers have integrated their cybersecurity monitoring with other risk monitoring suggests that there is a significant lack of coordination and collaboration between cybersecurity measures and other risk management functions within the asset management industry. This lack of integration implies that many asset managers may be operating in silos when it comes to identifying and mitigating risks, potentially leaving them vulnerable to more sophisticated and coordinated attacks that exploit gaps between different monitoring systems. This statistic underscores the need for greater synergy and alignment between cybersecurity and overall risk management practices in the asset management sector to enhance the overall resilience and security of firms’ operations and assets.
53% of asset managers feel their cyber policy is lacking effective communication and incident management.
The statistic “53% of asset managers feel their cyber policy is lacking effective communication and incident management” indicates that more than half of asset managers believe that their current cybersecurity policies are deficient in terms of effectively communicating relevant information and managing incidents. This suggests that there may be gaps in clear communication channels within organizations regarding cybersecurity protocols and procedures, as well as shortcomings in handling and responding to cybersecurity incidents promptly and effectively. Addressing these deficiencies is crucial for enhancing overall cybersecurity preparedness and resilience in the face of increasing cybersecurity threats and risks in the asset management industry.
More than 25% of asset managers expect cost of managing cybersecurity risks will grow more than 10% per year.
The statistic indicates that over a quarter of asset managers anticipate a significant increase in the cost associated with managing cybersecurity risks, with more than a 10% annual growth rate. This suggests that a sizeable portion of asset management firms are recognizing the evolving threat landscape and the increasing importance of robust cybersecurity measures. The data implies that these organizations are expecting to allocate more resources and budget toward enhancing their cybersecurity capabilities to effectively mitigate potential risks and protect their assets. It highlights the growing awareness within the industry of the need to address cybersecurity challenges proactively and allocate sufficient resources to stay ahead of emerging threats.
Cybersecurity breaches cost the average financial organization $18.5 million annually.
The statistic “Cybersecurity breaches cost the average financial organization $18.5 million annually” represents the financial impact of cybersecurity breaches on financial institutions. This figure accounts for the direct costs associated with addressing and mitigating breaches, such as investing in security measures and conducting forensic investigations, as well as indirect costs like lost business opportunities, reputational damage, and regulatory fines. The substantial amount of $18.5 million underscores the significant financial risk that cyber threats pose to the financial sector, highlighting the importance of robust cybersecurity measures and protocols to safeguard sensitive data and assets.
Conclusion
Overall, the statistics presented in this blog post highlight the critical importance of cybersecurity in the asset management industry. It is clear that the increasing frequency and sophistication of cyber attacks pose a significant threat to financial firms and their clients. As technology continues to advance, it is crucial for asset managers to prioritize robust cybersecurity measures to safeguard sensitive data and maintain trust in the industry. Stay vigilant, stay informed, and stay secure.
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