The Rising Threat of Social Engineering

From the 2015 PLUS Webinar “What’s Next on the Alternative Asset Manager Risk Horizon?,” panelists Neil Lipuma (Hiscox) and Machua Millett (Marsh) discuss social engineering and how that growing risk impacts both cyber and fidelty/crime coverage.

PLUS members can view this entire Conference session in the PLUS Multimedia Library.

Also from the webinar, moderator Elan Kandel (Cozen O’Connor) responds to a question from the audience…

Q: If the family office has an RIA experienced with private placements, is there a decreased risk for those family offices that make side by side investments with private equity firms?

A: Family offices typically qualify for the SEC’s Family Office Rule exemption and are not usually RIAs. With that being said, a proven track record should equate to a better risk. In the scenario of family offices making side by side investments with private equity firms, we should determine if they are passive investors or direct investors. Direct investors will bring risks more akin to PE and we should  inquire as to whether or not board seats are taken by family offices and if sufficient underlying D&O insurance is maintained. Passive investing will likely bring less exposure.  

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The Professional Liability Underwriting Society (PLUS) was founded in 1986 by industry professionals who recognized the need for a forum for individuals involved in the field of professional liability. The Society is a non-profit organization with membership open to persons interested in the promotion and development of the professional liability industry. Membership consists of over 6,500 individuals, representing over 1,000 companies active in the many fields of professional liability. PLUS currently receives the support of more than 200 companies through corporate membership. PLUS is recognized as the primary source of professional liability educational programs and seminars, assistance to its members to help serve clients, and information regarding professional liability. The Society is continually seeking new means to fulfill its mission statement and better serve its members.

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