TY - JOUR T1 - A Plan for Wealth Managers to Reduce the Risk of Cyber Threats JF - The Journal of Wealth Management SP - 24 LP - 30 DO - 10.3905/jwm.2006.661429 VL - 9 IS - 3 AU - Nick Nierengarten Y1 - 2006/10/31 UR - https://pm-research.com/content/9/3/24.abstract N2 - The author focuses on new risks facing individuals and families with substantial wealth. Financial manager acumen, market fluctuations and credit risks are now compounded by a variety of cyber threats and crimes, including identity theft. He suggests that the failure to address cyber security issues could mean severely diminished or destroyed returns on an otherwise highly successful portfolio, as measured by traditional means. Individuals, families and wealth managers can reduce risk by evaluating their financial advisor's ability and preparedness to respond to cyber threats. He postulates that, when a client experiences a loss or other damage as a result of a cyber-related incident, the issue relates to who will bear the loss—the client, the financial institution or someone else. He argues that effective wealth management now requires a critical analysis of the financial advisor's ability to anticipate and respond to cyber threats, to how cyber-related risks are contractually allocated between the client and financial advisor, and to the financial advisor's ability to compensate the client (both balance sheet strength and through appropriate insurance).TOPICS: Wealth management, risk management, manager selection ER -