Do you have a cyber ‘Maginot mentality’?

How PE firms should be tackling cyber risk; HKW's Rakkou on what it's like to juggle the roles of CFO and COO.

Cyber overconfidence:  “CFOs need to consider this process never ending,” said a panelist at the Forum in late January, talking about the process of data management strategy and implementation. Of course, this is also true of cybersecurity… more so, really, given the constantly evolving threats out there in Wild West of cyberspace.

Hugh Kennedy over at sister title Regulatory Compliance Watch gives us this article, “A complete cyber mitigation strategy”, from a report by FTI Consulting, cautioning that the cybersecurity landscape is “dynamic” and “fluid”, meaning that firms need to “continually assess [their] cyber resilience methodology.”

Just as a poll taken at the Forum showed that most GPs think they’ve got cybersecurity more or less mastered (though their LPs are far from convinced), FTI’s survey showed that although executives regard cyberattacks as the biggest corporate risk in 2020, 10 percent said they think they have no cybersecurity gaps at all, and less than half are actively managing cyberattacks.

Q&A: Today, we’ve got mid-market firm HKW’s CFO and CCO, Constantine Rakkou, who talks to us about what it’s like managing both roles. He also touches on the firm’s anti-money laundering policy; although there are no AML requirements for private funds under US law, changes are already coming (more on that soon), and Neuberger Berman’s Brian Smith recently talked about how a mirroring of European AML rules in the US is eventually all but inevitable.

Email prepared by Graham Bippart