Cyber security a real concern for the LGPS

In the first of DG Publishing’s LGPS Barometer surveys, the LGPS has, unsurprisingly, expressed an increased concern around cyber security and related issues. 61% of respondents said that they were either concerned or very concerned about cyber security. The recent cyber attack on Capita highlighted those concerns, leading several to comment that the attack, which impacted many pension funds, served only to highlight the dangers we face in the modern connected word.

Figure 1: Level of concern about cyber security

Source: LAPF Investments

Respondents also commented that no matter how seriously an organisation treats cyber risk, if security at a company such as Capita can be breached, then it’s important to realise that cyber-attacks can and will occur. Adding that organisations should make sure not only that their defences against such an attack be robust, but that they should also have a clear and effective recovery plan in place.

When asked if they have the skill set and IT infrastructure internally to manage their cyber security, it was encouraging to see that nearly 70% of respondents said yes they did.

Figure 2: Internal skill set and IT infrastructure to manage cyber security

Source: LAPF Investments

However, the fact that over 10% didn’t know if they had the necessary skills raises questions around communications. It’s vital that all parties be fully aware of a data breach when it happens and understand the measures that are in place to protect data systems and processes.

Some pension funds have Cyber Security Essentials Plus Accreditation, independently reviewed regularly, which is something the LGPS could embrace as cyber attacks become more frequent.