According to CoreData Research, investors classify cybersecurity or data breaches to be more significant than a fund manager change and an even more pressing reason to terminate a manager.
So when it comes to answering the security section of an allocator’s RFI or DDQ, it’s even more important that asset managers share these details in a clear and compelling fashion.
If you’re not a security expert, or your organization doesn’t employ one, this can be a daunting task.
Good news...it doesn’t have to be.
Vigilance in an Ever-Changing Security Landscape
At the end of the day, asset managers can’t be blindsided by any breaches or gaps in security.
And with the risk landscape constantly evolving and hackers devising new methods, asset management organizations should constantly be improving and adapting, too.
As for allocators, they need to clearly understand the boundaries of their security program and know where they rely on vendors and partners to achieve their security goals.
How to Successfully Answer Binary Questions
When allocators send asset managers RFIs or DDQs, they are seeking to understand and evaluate the asset manager’s security controls to see if they align with their expectations.
Unfortunately, binary questions are a staple of many allocator RFI and DDQ questionnaires, and they set asset managers up for failure since they don’t allow you to explain how robust your security processes or protocols actually are.
If you want an allocator to understand the strength of your security measures, you need to provide a more nuanced answer that addresses HOW your information security policy works.
Answering binary questions with a detailed explanation immediately differentiates you from competing fund managers who answer with a simple “yes/no."
This is just one of the guidelines you can learn about in Backstop’s whitepaper, “This is How Asset Managers can Conquer the Security Portion of Allocator RFIs and DDQs.”
These guidelines will help you discover how to:
- Provide an accurate accounting of your security measures
- Help investors see if your security controls align with their expectations and requirements
- Demonstrate the high priority you place on security
- Empower allocators to confidently make decisions
Ready to start opening the doors to productive conversations with potential investors and build long-term relationships?