Registered Investment Advisors Continue to Rank Threats to Data Security as Their Top Business Concern, According to the Golsan Scruggs 2023 RIA Risk Survey Concerns about regulatory risk and trade errors are also among top RIA concerns.
LAKE OSWEGO, Ore.
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December 19, 2023 11:00 AM Eastern Standard Time
Registered investment advisors (RIAs) are more concerned about their liabilities for a cyberbreach or theft of data than any other potential business exposure, according to the 2023 RIA Risk Survey from insurance brokerage Golsan Scruggs.
Nearly nine out of every 10 RIAs surveyed listed Cyber/Privacy Data Breach as their most pressing corporate risk. That concern increased slightly from 2020’s RIA Risk Survey.
“The complexity of advisor technology stacks and the data-driven nature wealth management has raised the risks advisors face in handling and protecting client data, and RIAs know it,” said Kenneth Golsan, Co-Founder and Managing Director of Golsan Scruggs. “Managing and mitigating that risk should be top of mind for any RIA.”
The second-highest risk concern for RIAs was regulatory compliance/audit, followed by trade execution/errors. Lowest on the list of concerns was employee dishonesty, which includes theft by employees of either company or client assets.
Golsan Scruggs surveyed approximately 8,000 independent RIAs from August through October to determine which areas of risk are collectively perceived as concerning, significant, and central to their businesses. Respondents were asked to rank 10 different risks in order from lowest to highest.
“RIAs are businesses, and it is important for all business owners to assess and limit their liabilities through smart management, best practices, and risk mitigation,” Golsan said. “Our survey shows that RIAs increasingly understand many of the risks to their businesses, which is good news for the industry and the clients it serves.”
To access the full survey results, please visit Golsan Scruggs at www.gsRIA.com.
ABOUT GOLSAN SCRUGGS
Golsan Scruggs is a specialty corporate insurance brokerage firm serving the risk and insurance needs of various financial institutions: registered investment advisors (RIA), private equity/hedge funds, mutual funds and related.
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