PHYSICAL SECURITY AT THE INVESTMENT MANAGER
Operational risk due diligence on private fund managers should factor in physical security especially in today’s expanding technological and remote working environment.
Here is a basic checklist:
- Does the manager have a physical office?
- Does the manager have a direct lease with their landlord, or is the lease short term?
- Does the manager sub-lease their office space to third parties?
- Is the office building secure from unauthorized entrants, and/or other risks such as fire and weather?
- Does the office building have a security desk and guards in the lobby?
- How is the office building locked (keycard, fingerprint, metal key)?
- Does the manager’s office suite have a receptionist monitoring the entrance of their office space?
- Does the manager keep their office suite entrance door closed and locked?
- How is the office suite locked (keycard, fingerprint, metal key)?
- Are hard copy documents kept in locked cabinets?
- Does the manager maintain hard copy documents visible in the office?
- Does the manager have names of their clients visible around the office?
- Does the manager keep their email open and hold confidential calls during an ODD review?
- What is their policy for staff working remotely?
- Do they have an information security policy to ensure that their home office space is secure from family members, roommates, household staff?