Family offices need to prioritise cybersecurity, whether handled internally or outsourced. Ignoring cybersecurity leaves them vulnerable to criminal threats, requiring an evolution in their defence strategies.
Andrew J. Evans, CEO and founder of Rossby Financial, highlights this vulnerability. A 2023 report by Dentons reveals that many North American family offices faced cyber attacks, with only a small percentage having strong cyber risk capabilities and adequate training.
Cybersecurity for family offices involves more than protecting business and client data; it includes safeguarding the digital lives of wealthy families. The proliferation of IoT devices increases risk, as each device represents a potential security breach.
Family offices must choose between building in-house cybersecurity teams or outsourcing the service. An in-house team offers greater control and potentially lower long-term costs but requires significant initial investment and ongoing training. Outsourcing provides immediate expertise and predictable costs but may be more expensive over time.
Ultimately, any proactive approach to cybersecurity will enhance the value family offices offer to their clients, setting them apart in a competitive market.
