How To Invest In Cyber Security


What Is Cyber Insurance

Your Guide to Investing in Cyber Security

According to the US Cybersecurity and Infrastructure Security Agency , cyber insurance mitigates losses from cyber incidents like data destruction and/or theft, extortion demands, hacking, denial of service attacks, crisis management activity related to data breaches, and legal claims for defamation, fraud, and privacy violations. In addition, cyber insurance policies cover the costs of data recovery, system forensics, legal defense, customer reparations, and more.

Companies need a separate standalone cyber insurance policy since standard commercial insurance policies do not usually cover cybersecurity incidents. Its also important to evaluate whether first-party or third-party cyber liability insurance applies to your industry and services. First-party cyber liability insurance protects your company and covers costs related to a cyberattack, like public relations and forensic analysis. Third-party cyber liability insurance, on the other hand, protects against lawsuits brought by other businesses for losses or damages caused by the cyber incident your company experienced.

Cyber Security Increasingly A Strategic Goal

In response to the changing vulnerabilities and threats, and the increased need to build trust for competitive advantage, business leaders are making cyber security a strategic goal. There is now greater understanding that cyber security should not be an afterthought driven by compliance, but must be an integral part of company organisation and processes if the business is to survive and remain competitive.

Comprehensive cyber security, therefore, needs to be the goal of every successful business, and can be achieved by following a modern cyber security framework or architecture. Cyber security tools are essential to enabling organisations to protect data, detect malicious activity, respond to attacks and recover from them quickly to minimise the impact on business operations.

It is also important to remember that cyber security is not only about protecting the business against specific threats, but essentially about providing the cyber protections that the business needs to be viable. Cyber security is therefore about working with the business to ensure that the business can innovate and achieve its goal by ensuring a safe IT environment to operate in.

In the same way that the UKs National Cyber Security Centre is aiming to make the UK a safe place to do business, each business needs to work with its cyber security teams to ensure the organisations IT environment is a safe place to do business for employees, partners and customers.

Why Do Sec Registered Companies Need To Evaluate Cybersecurity

Understanding SEC investment guidance safety is crucial for investment advisers. With this guidance, investment advisers can follow the proper procedures to improve cybersecurity.

The SEC offers several tips for investment advisers to bolster their cybersecurity, including:

  • Use periodic assessments In addition to penetration testing, the SEC recommends investment advisers evaluate both internal and external cyber threats, security controls and processes, how and where sensitive data is stored, the impact of a potential data breach and the governance structure for managing cybersecurity risk.
  • Develop a cybersecurity strategy An effective cybersecurity strategy ensures investment advisers can prevent, detect and respond to cyber dangers without delay. This plan should include data backup and retrieval measures, the use of data encryption and controlling access IT systems via authentication and authorization methods.
  • Educate employees, clients and partners Cyber threats can affect an organization and its employees, clients and partners. Therefore, implementing a cybersecurity strategy and educating all involved parties about it can ensure these groups work together to control cybersecurity risks.

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Cybersecurity Stocks Promise Stable And Good Returns To Digital Wallets

Cybersecurity is one of the most essential advanced technologies in the internet era and also for the upcoming Web 3.0 and 5G. Cybercriminals are on the constant lookout for weak links to launch an attack with all modern cyberattack approaches to steal confidential data from organizations or individuals. It has given rise to a need for thousands of cybersecurity companies to combat this issue with multiple strategic cybersecurity solutions. Cybersecurity Companies have started offering lucrative stocks in cybersecurity to earn profits from a stable global tech market. Lets explore some of the top ten cybersecurity stocks to invest in 2022 that help make a reasonable profit.

Top ten cybersecurity stocks in 2022

A10 Networks, Inc.

Current price: US$14.24

A10 Networks Inc. is one of the top cybersecurity stocks to invest in 2022 for providing networking solutions across the world, especially in Japan, the US, EMEA countries. This cybersecurity company offers a wide range of cybersecurity solutions such as Thunder Application Delivery Controller, Lightning ADC, Thunder Carrier Grade Networking, Thunder Threat Protection System, Thunder Secure Sockets Layer, etc, to serve industries such as telecom, retail, government, education.

Current price: US$101.84

Current price: US$195.21

Current price: US$452.00

Current price: US$239.15

Current price: US$344.52

Current price: US$5.85

Current price: US$79.53

Current price: US$116.42

Current price: US$182.84

Coronavirus Outbreak Boosted Demand For Cloud Security

The Importance for Cyber Security in Investment Banking ...

Other cybersecurity firms with a sizable government business include Tenable Holdings , Rapid7 and CyberArk. Tenable in February acquired France-based Alsid, which focuses on identity access management.

Rapid7 and Qualys specialize in vulnerability management services.

Amid the rapid global spread of Covid-19, many companies instructed employees to work from home. That has increased demand for computer security products that support remote work.

The coronavirus emergency and shift to remote work has accelerated the growth of cloud-based network security. So the industry now has a new term for the infrastructure that supports distributed workers and branch offices.

It’s spelled SASE â pronounced “sassy” â and it stands for Secure Access Service Edge.

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Identify The Risks Associated With Customer Access And Funds Transfer Requests

If a customer wants to access their accounts online or complete a funds transfer request, will this clients sensitive data remain secure? Thats a question investment advisers need to consider. As such, investment advisers will need to do everything possible to identify and manage customer risks.

How investment advisers control and secure customer data is key. These advisers must be able to show the SEC that effective cybersecurity controls are in place to ensure customer information is protected 24 hours a day, seven days a week.

Plus, investment advisers must be able to deliver secure, consistent online access to clients that includes verification mechanisms. In many cases, investment advisers may consider multiple verification systems as well.

Investment advisers must be able to identify unusual behaviors among customers who access their data online, too. Advisers who have ability to monitor customer behaviors can understand the differences between typical and unusual actions when customers access their accounts. With the ability to differentiate between normal and anomalous customer behavior, investment advisers can reduce the risk that customer data becomes compromised.

Investment advisers also may deploy multi-factor authentication techniques to further protect customers against cyber threats. MFA minimizes the risk of a minor cyber threat becoming a major issue because it requires customers to pass through multiple layers of security to access their accounts.

How To Invest In Cyber Security

When it comes to money and credit card fraud, Experian is many individuals and businesses go-to when it comes to checking a credit score.

A holding in ***, Experians paid-for service is a great resource for those who want to keep a closer eye on their credit history. You can keep a watchful eye over any credit card applications and potential identity fraud.

While Experian can alert you to potential fraud after the fact, Cisco has a host of security products to detect and stop threats before they occur.

A top ten holding in Lazard US Equity Concentrated***, the company ranked fifth on the Cybersecurity 500 list for the worlds hottest and most innovative cybersecurity companies in 2018**. Cisco focuses on business threat protection, with tailored products from domain security to cloud-based network security.

With the introduction of Microsoft Threat Experts^ , Microsoft is quickly becoming a leader in cyber security trends.

A top ten holding in Brown Advisory US Flexible Equity***, Microsoft is bringing to market a number of security services for their customers, which use artificial intelligence, hand in hand with technology and experts, to stop fraud.

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Why Is Cybersecurity Important For Investment Advisers

Cybersecurity remains vital for investment advisers. As new cyber threats are identified, cybersecurity will remain paramount for these advisers both now and in the future.

The PricewaterhouseCooper State of Information Security Survey 2016 revealed 91 percent of businesses currently follow a risk-based cybersecurity framework. Investment advisers, meanwhile, must be able to identify the key issues associated with cybersecurity as well as the best ways to manage these problems.

Fortunately, cybersecurity guidance is readily available but first, it is important to examine why cybersecurity is important for investment advisers.

Why Is Penetration Testing For Investment Advisers Important For Improved Cybersecurity

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The U.S. Securities and Exchange Commission frequently explores ways to help investment advisers minimize cyber risks. As such, the SEC may require penetration testing to examine the security of an IT infrastructure.

Penetration testing involves trying to exploit vulnerabilities to determine if an IT infrastructure is protected against a wide range of security threats. This testing enables investment advisers to evaluate vulnerabilities in a number of potential points of exposure, including:

  • Servers
  • Mobile devices
  • Wireless networks

Using automated and manual technologies, investment advisers can conduct penetration testing to determine if cybersecurity exploits can breach an IT infrastructure. If the exploits are successful, investment advisers likely will need to revamp their cybersecurity strategy.

SANS Institute points out that there are two reasons investment advisers may conduct penetration testing:

1. Increased security awareness Investment advisers can identify cybersecurity issues before they cause extensive IT infrastructure problems.

2. More informed decision-making Cybersecurity data provides exceptional value, and with penetration testing, C-suite and senior-level executives can identify IT infrastructure weaknesses and determine the best steps to minimize these issues.

A penetration test does not last forever. Depending on the organization conducting the tests, the time frame to conduct each test varies, SANS Institute notes.

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How To Invest In Cybersecurity

Morningstar analyst Kenneth Lamont likes three ETFs in this space: L& G Cyber Security, Rize Cybersecurity Data Privacy and iShares Digital Security ETF. He says: I like the new entrant, Rize Cybersecurity Data Privacy ETF , for the purity of exposure to its theme. It uses a tiered index approach, which gives a larger weight to those firms that have a higher revenue from cyber security related activities.

Among actively managed funds Lowcock likes Polar Capital Technology Trust and the Silver-rated Blackrock Global Funds World Technology. These are not pure cyber-themed funds but they have traces of the sub-sector in their portfolios. He likes Polars managers Ben Rogoff and Nick Evans, who seek new and disruptive technologies: They combine thematic views with financial analysis to spot high growth companies. Meanwhile, the Blackrock fund contains disruptive firms that can rapidly capture market share, such as cloud computing provider Twilio.

Its clear in todays digital world that cyber-attacks – especially where personal data privacy violations are concerned – pose an incalculable risk,” says Bhushan. “Companies that don’t invest in security will lose the trust of their customers. That’s a big enough problem even before the hefty fines that companies can expect to be slapped with by the authorities for security breaches.”

Protect Detect Respond Recover

The protect pillar includes everything that has to do with protecting data, including change controls, access controls, vulnerability management, and network and physical security. It also includes several components that span one or two other pillars, such as endpoint protection, detection and response .

The detect pillar includes everything related to detecting threats and anomalous or malicious activity. Several components span one or two other pillars, such as the SIEM/security intelligence component. The detect pillar also includes five full-service components that cover all layers of cyber security, namely: online fraud detection, privacy/breach monitoring, anomaly detection, threat hunting and security operations centre.

The respond pillar is becoming increasingly important as organisations realise they cannot rely only on protection technologies to keep cyber attackers out of their corporate networks and must have some capacity to respond when security breaches do occur. The respond pillar includes components that are designed to ensure that when an organisations cyber defences are breached, the impact of the attack is kept to an absolute minimum. The focus of this block is on incident response.

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How To Speak In Financials

While there are methodologies you can use to convert risk scores into ROI, they are not logistical or very accessible. However, by using Boardish, you can easily quantify threats and calculate how effective each threat mitigation solution is. This paints a clearer picture to decision-makers on why they should approve your budget and invest in cyber security. For each threat your company faces, you can assign one or more mitigation approaches, each with different effectiveness. You can enter the cost of employee downtimes, education, software solutions, professionals, and more.

Boardish allows you to run quick simulations on the most efficient and effective solution combinations. Sales loss, market loss, regulation, or salary loss are all available, and you can present custom results to the board, focusing only on what is important to them.

The Current Investing Environment

Why we need to invest in Cyber Security Services ?

Once considered a niche domain reserved for investors with a specialist focus, cybersecurity stocks are now enjoying a period of rapid growth, which should put them on the radar of any investor looking to gain exposure to a promising industry.

Firstly, the sector has been one of the big winners of the global economys digitisation. This process has been ongoing for years but Covid-19 has spurred this forward as businesses have sought to adjust to remote working and cashless payment infrastructure.

Researchers from the World Economic Forum expect this digitisation to generate a $100tn dividend for businesses and society by 2025. But it also opens new avenues through which cybercriminals and other malicious actors can attack organisations by exploiting flaws in their defences.

According to Deilotte, it is this accelerated move to the digital economy which is the main catalyst for a steep increase in cyber attacks against businesses. Close to half of all UK companies reported breaches of security last year, and the trend has continued into 2021, with a number of high-profile attacks and breaches occurring across a diverse range of industries.

However, the same report finds that corporate leaders also feel less confident in their abilities to resist the growth in cyber incidents. This deficit represents a golden opportunity for cyber-security firms to achieve impressive growth, and there are a number of ongoing developments that look set to increase their importance.

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How Much Should You Invest In Cybersecurity

Companies are spending more than ever on cybersecurity.

A Gartner report found that global spending on information security products and services totalled $81.6 billion in 2016 an increase of 7.9 percent from 2015. With the frequency and intensity of cyber attacks increasing globally, this is a trend thats likely to continue.

Investing in cybersecurity really isnt an option anymore. Its a necessity. Taking a proactive approach to cybersecurity is your best bet for thwarting attacks and protecting your data assets.

Theres just one question. Exactly how much should you invest?

More specifically, how do you strike the right balance between adequately shielding your company without overspending on superfluous features?

Lets look at some key data to find out.

How Cyber Insurance And Cyber Security Go Hand

A cyber insurance policy doesnt replace preventative cybersecurity measures. On the contrary, cyber insurance policies often require and promote the adoption of preventive measures to get coverage in the first place. Implementing best practices can also reduce ones premiums.

And despite excellent policies and coverage, some intangibles cant be fixed by cyber insurance. For example, when a cyberattack leads to intellectual property theft or severe damage to a businesss reputation, no insurance policy can fully compensate for that damage. In which case, a company should do everything it can to prevent a cyber attack from succeeding in the first place.

To prevent a successful cyberattack, organizations should follow cybersecurity best practices like requiring multi-factor authentication organization-wide or protecting all passwords with a business password manager. Some cyber insurance providers are actively aiding clients to improve their cybersecurity practices. Implementing best practices means its easier to get cyber insurance, cheaper to stay insured, and less likely the company will be at fault due to a preventable vulnerability. Most importantly, its significantly more difficult for bad actors to compromise a corporate network or steal valuable data when IT puts these cybersecurity measures in place.

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Return Comparison Of All Cybersecurity Etfs

The table shows the returns of all cybersecurity ETFs in comparison. All return figures are including dividends as of month end. Besides the return the reference date on which you conduct the comparison is important. In order to find the best ETFs, you can also perform a chart comparison.

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  • Historic return simulation of ETF portfolios
  • Performance and risk analysis
  • 5 portfolios included

Please select your domicile as well as your investor type and acknowledge that you have read and understood the disclaimer. The fund selection will be adapted to your selection.

Where To Invest: People

Webinar: How to invest efficiently in cybersecurity? Optimal Cyber Security Investment (ROSI) – BSG

The critical role that security training has on data security cannot be understated. The2020 Webroot Threat Reportfound that running 11 or more training courses over the course of 4-6 months reduces the click-through rate of phishing emails by 65%.

Funding cybersecurity training is not just a way of mitigating current threats. It is an investment to keep your business safe in the future as new threats emerge. Offering training for staff who are keen to learn relevant skills will be much more cost-effective than hiring expensive and hard to find professionals and paying huge sums to reduce the consequences of an attack.

Offering cybersecurity training is about being proactive. Taking a proactive approach to protecting your business will place you in a better position in the future. Providing training for staff will offer you an immediate return on your investment since they could tweak daily practices to make them more secure and help plan for the most secure ways to run future business operations.

Theres no better opportunity than investing in and upskilling your staff on a continuous basis. Since cybersecurity is not just a single qualification, you may take advantage of plenty of regularly updated courses, covering the latest threats and accommodating learners of all levels, from foundation courses through to expert. For example, the European Union Cybersecurity Agency offers free training materialspecifically tailored for SMEs.

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