With easy-to-use ransomware toolkits hitting the cyber crime market and sophisticated hackers using novel attack strategies, fund managers need to firmly grasp the risks of ransomware and the measures they can take to proactively mitigate those risks. They must also create an effective, comprehensive response to potential attacks. In this two-part series, legal and technical experts share their insights on how fund managers can prepare for ransomware threats by employing effective cyber hygiene and planning. This first article covers the current methods of attack and their risks, as well as prevention techniques and how fund managers can prepare for an inevitable attack. The second article will address effective response measures, including if experts should be used to conduct a forensic analysis, whether to pay a ransom and how cryptocurrency is changing the landscape. See “Steps Hedge Fund Managers Should Take to Defend Against the Rising Threat of Ransomware in the Wake of WannaCry” (Jun. 15, 2017).