The frequency of large cyber breaches is increasing, as is the cost of responding to them.  A recent program sponsored by K&L Gates and the Investment Adviser Association (IAA) surveyed the current cybersecurity threat environment and SEC cybersecurity initiatives; summarized the applicable laws and regulations that bear on cybersecurity; considered the multitude of cybersecurity risks faced by investment managers; and offered a number of strategies for mitigating those risks.  The program was moderated by Mark C. Amorosi, a partner at K&L Gates, and featured a panel consisting of Jeffrey Bedser, CEO of iThreat Cyber Group; Laura L. Grossman, Assistant General Counsel of the IAA; Andras P. Teleki, a partner at K&L Gates; and E.J. Yerzak, Vice President at Ascendant Compliance Management.  This article, the first in a two-part series, summarizes the key points raised by the panel relating to the costs of cyber breaches; applicable laws and regulations; and cyber threats.  The second article will discuss the panel’s views on mitigating cybersecurity risks.  For more on cybersecurity, see “ACA Compliance Group Clarifies Misconceptions Commonly Held by Fund Managers with Respect to Cybersecurity,” Hedge Fund Law Report, Vol. 8, No. 15 (Apr. 16, 2015).