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The U.S. Securities and Exchange Commission (SEC) has made clear that it is important for investment advisers, including private equity (PE) firms, to effectively manage cybersecurity risks. This is especially true as PE firms implement greater amounts of technology into their activities and cyber risks multiply, impacting not only information technology, but also business, regulatory and operational aspects of a company. PE firms should be mindful of this regulatory climate and take cybersecurity issues into account as part of their overall exposure to the federal securities laws.

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