How Cloud Services Can Be Security Gaps for Alternative Funds
For many private equity firms and hedge funds, the use of cloud services has become commonplace. Regardless if it’s a well-established firm or a single manager brainstorming on how to start a private equity firm, cloud services offer means to store data, process data, and disseminate information faster than ever. Agio, a provider of IT outsourcing for hedge funds and private equity firms, offers a few key thoughts and considerations on how to secure critical data in the cloud.
The Importance of Process
However, the process of migrating to the cloud is just as important, if not more so than the benefits of the technology. Migration to the cloud is not a simple IT decision, but rather something the business as a whole needs to consider. Cloud services can have a multitude of different security models which can have significant impact on the security of your data. Especially if you have minecraft server hosting on the migration schedule.
For example, the way data is classified, sorted, and managed needs to be considered. Most private equity firms and hedge funds have some form of organizing data for its most effective use and protection. Oftentimes, it boils down to handling sensitive vs. non-sensitive information. When accessing and managing data online, it’s important to be able to identify the extent of a breach and what type of information is accessed.
Classifying Data
The procedures and ramifications of unauthorized access to trade positions would be very different from unwanted access to investor lists. Being able to know exactly what files are comprised in a breach can help inform a measured response. It is especially important to know if a breach would require notifications to multiple state attorney generals, which could lead to fines, damage to the firm’s reputation, and loss of investor trust.
The First Step to Secure Data
One of the first steps towards securing your cloud-based services and systems is with a document called a DDQ, or Due Diligence Questionnaire. A DDQ provides a consistent, standardized means of assessing the cybersecurity capabilities and vulnerabilities of your firm and vendors. Whether it’s measuring your cloud-based security procedures and permissions or the potential vulnerabilities of your vendors, a DDQ is the first step in any in-depth audit.
As an established IT services provider and cybersecurity specialist for alternative investment funds, Agio is uniquely positioned to help keep your firm secure. For many small fund managers, creating a DDQ is a daunting prospect – which Agio can help address.
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