What a Cyber Risk Vulnerability Threat Assessment Actually Involves

The written risk and threat assessment is, in my experience, the single most-requested document in an SEC cybersecurity examination. Rule 206(4)-7 requires advisers to identify risks and review the adequacy of their controls. Regulation S-P requires written safeguards reasonably designed to protect customer information. Neither obligation can be satisfied by a policy that asserts the firm is secure. Both require evidence that the firm looked, found what was actually there, and acted on it.

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