Cyber insurance policies are indispensable for investment firms operating in an age of widespread cyber attacks and data breaches costing millions of dollars in damages and liability. Investment fund manager principals need to have a nuanced grasp of what those policies cover and ensure they maximize their value. Doing so can put their firms in a good position to reduce reputational and financial harm in the event of a cyber breach or investigation of their cyber preparedness by a regulatory agency. See “Essential Tools for Hedge Fund Managers to Combat Escalating Cyber Threats
” (Feb. 4, 2016). These points were explored in a panel discussion presented by Haynes and Boone. Moderated by Haynes and Boone partner Werner Powers, the panel included Ron Borys, managing director of Crystal & Company; Sandy Crystal
, executive vice president of Crystal & Company; Christopher Liu, head cyber specialist for financial institutions at AIG; and Haynes and Boone partners Ricardo Davidovich and David Siegal. This article presents the key insights communicated by the panel. For additional insight from Davidovich, see “Understanding the Regulatory Regime Governing the Use of Social Media by Hedge Fund Managers and Broker-Dealers
” (Dec. 13, 2012); as well as our two-part series on closing hedge funds: “How to Close a Hedge Fund in Eight Steps
” (May 8, 2014); and “When and How Can Hedge Fund Managers Close Hedge Funds in a Way That Preserves Opportunity, Reputation and Investor Relationships?
” (Jun. 2, 2014).