2023 Hedge Fund Cybersecurity Trends Report Reveals Shift from Insourcing to Outsourcing to Tackle Cyber Risks
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To protect hybrid work environments, firms outsource cyber programs to harden security and resist escalating attacks.
NEW YORK, May 9, 2023 /PRNewswire/ — Agio, a leading managed IT and cybersecurity provider for financial services firms, published its annual 2023 Hedge Fund Cybersecurity Trends Report today. Agio surveyed over 100 hedge fund practitioners spanning the technology, operations, cybersecurity, compliance, and finance fields for an in-depth look into how economic and employment trends are shaping their technology management practices and preferences.
Survey respondents reported a significant spike in cyberattack complexity and intensity in the last 12 months. Firms that insource their cyber programs reported the biggest increase: 77% said the number of attacks increased and 87% said attacks were more severe. These funds unanimously (100%) said they would look to outsource over the next two years.
Funds that currently insource reported the reasons they initially chose to do so are the same reasons they will pivot to an outsource model. Their motivators are to protect hybrid work environments, consolidate cybersecurity and managed IT with a single provider, and access industry-specific and regulatory expertise. Additionally, respondents said meeting regulator and investor pressure to use a third party for cyber governance impacts their decision.
The report also found that respondents unanimously agree it is essential for cybersecurity and technology teams to work as a single, holistic unit to bolster a firm’s cyber posture. Bundling these services with a single provider helps identify vulnerabilities and mitigate risks before they become serious—a critical part of the story as firms navigate the complex security required to protect hybrid environments.
“In a world where cyber threats are evolving rapidly, Agio’s vantage point as a managed IT and cybersecurity industry leader allows us to offer unparalleled protection to our clients,” said Bart McDonough, CEO and Founder of Agio. “By safeguarding numerous clients, we’ve cultivated insights that those solely focused on their own networks miss out on. Our experience becomes their shield.”
This year’s in-depth report also explores how cyber program pain points vary based on assets under management, number of staff, and years in operation as well as seniority and functional role.
To download the full 2023 Hedge Fund Cybersecurity Trends Report, visit <link>
Agio is a hybrid cybersecurity and managed IT organization equipping financial and healthcare services organizations with next-generation cyber protection and technology support. Agio is headquartered in New York, NY, with additional offices around the world. For more information, please visit www.agio.com.
Agio worked with Market Measurement, an independent survey administrator, to conduct the 2023 Hedge Fund Managed IT Trends Survey Report. The survey was fielded in Q1 of 2023. A total of 121 online interviews were conducted with technology, cybersecurity, operations, and compliance professionals in the hedge fund industry to assess attitudes, behaviors, and perceptions among hedge fund executives about sourcing and managing their cybersecurity solutions and programs.