Investment firms may be overlooking the cybersecurity risks associated with artificial intelligence and new regulations, a recent survey suggests.
The 2024 Cybersecurity Benchmarking Survey, conducted by ACA Group and the National Society of Compliance Professionals (NSCP), revealed that nearly 40% of compliance professionals in asset management, investment adviser, and private markets firms have not yet assessed AI as a cybersecurity risk.
Additionally, 27% of respondents do not see AI as relevant to cybersecurity, while almost half are still in the early stages of exploring AI as a tool for managing cybersecurity risks.
The top three cyber threats that respondents are most worried about include payment fraud/business email compromise, ransomware, and privacy threats involving personal identifiable information.
The Securities and Exchange Commission’s (SEC) new cybersecurity rules are also causing confusion and skepticism among industry professionals. Forty-four percent of those surveyed are unsure about how the SEC will enforce the rules, and 36% have concerns about meeting cyber incident reporting requirements and deadlines.
Despite expressing confidence in their firms’ ability to respond to a cyber breach, only 40% of compliance professionals have conducted an external test of their response plan. Many firms are relying on cybersecurity insurance as a risk management tool, with 85% of respondents who have such insurance viewing it as essential.
Overall, the survey highlights inconsistencies in cybersecurity practices within the industry and underscores the need for investment firms to prioritize evaluating AI as a cybersecurity risk and complying with new regulations.