Even a small cyber incident can erupt into a high-profile event depending on whether and how it becomes public. Because of the potentially damaging impact press coverage can have, fund managers should be prepared with a thorough communications plan that contemplates more than just technical answers. For more on mitigating reputational risks, see “Hedge Funds’ Image Crisis: Fighting Public Perceptions Against the Backdrop of Potential Financial Sector Reforms
” (Jun. 22, 2017). This second installment of our two-part series on cyber crisis communication plans offers advice on strategies for handling external communications to the media, regulators and others; controlling and coordinating with a third-party vendor; and overcoming common pitfalls and challenges. The first article
discussed how to identify key personnel and their roles; detailed crucial playbook components and the benefits of planning ahead; and offered guidance on how to approach internal communications during a cyber crisis event. For more on combatting cybersecurity breaches, see “Essential Tools for Hedge Fund Managers to Combat Escalating Cyber Threats
” (Feb. 4, 2016); and our two-part series on how hedge fund managers can meet the cybersecurity challenge: “Snapshot of the Regulatory Landscape
” (Dec. 3, 2015); and “A Plan for Building a Cyber-Compliance Program
” (Dec. 10, 2015).