The biggest risk facing the financial industry is cyber security. The SEC discovered that many major exchanges, clearing houses, and private exchanges and forums lack cyber policies covering the risks that they face, leaving them open to cyberattacks. Although the SEC is doing everything possible to prevent such attacks, the agency cannot handle the problem without help from the financial industry. Here are some ways to ensure that your own policies and procedures are tailored to your particular risks.
Get Assistance from the SEC
Because of the SEC’s concerns over cyber attacks, the agency formed a Roundtable on Cyber Security to better understand the issue, and determine what role the SEC should play in preventing such attacks. As a result, the SEC actively provides recommendations to investment companies and advisors, conducts examinations for uncovering cyber security risks, and assists with cyber security preparedness for the securities industry. In addition, the SEC’s OCIE includes cybersecurity compliance and controls in its Examination Priorities.
Be Multifaceted in Security Approaches
Because cyber attacks can come from international and domestic sources, as well as employees, contractors, or other internal sources, you must fight cybersecurity with various approaches. For example, protection from external threats may include strong firewalls and systems that stop criminals from accessing your company’s computer system and notify company executives of attacks so they can create additional preventative measures. Protection from internal threats may include strong restrictions on which employees have authorized access to confidential information.
Put Additional Funds Toward Cyber Security
Because cyber security is not a profit center, many financial companies and institutions do not invest enough money in cyber security, leaving openings for fraud. Since criminals continue evolving in their use of creativity and resources for financial gain, lack of cyber security enables them to hack into computer systems and steal confidential information. In addition, the fact that computer systems and the internet were created as open systems increases companies’ need for cyber security.
Financial companies need to place greater value on their intangible assets, such as client information, because they may be at greater risk from theft than their tangible assets are. Because we live in the information age, and the value of information continues increasing, so do the risks of cyber attacks. For these reasons, companies need to continue putting resources toward protecting confidential information on an ongoing basis, updating their systems as new threats arise.
Don’t take chances with your cyber security. We can help provide the staff who can make sure your company is prepared for preventing cyber attacks. Contact the trained professionals at CarterWill Search & Flex today to work with a leading recruiter for financial compliance!