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3 Security Concerns All Financial Services Companies Should Address

 

January 26, 2016 | DevOps | joanna mastrocola

As enterprise IT teams grow, the threat surface for attacks increases.  As hackers are getting smarter in the way they access systems, businesses are quickly realizing that security is one of the most important, and potentially Security Concerns for Financial Services Companiesdevastating, challenges they face. It used to be that only security teams were concerned about cyber safety, however, recently, it has quickly become a priority on the c-suite agenda. After surveying 1,409 CEOs around the world,  found that 61%  are concerned about cybersecurity and 55% are troubled by consumers’ waning trust in businesses.

In its recently released Global State of Information Security Survey of 2016 PwC found that for financial service firms, cybersecurity is a chief concern. The piece discusses some of the key issues they face. Although some of the statistics on breaches seem scary, and all of the publicized hacks make us feel as though no one takes our private data seriously, this study shows that we are headed in the right direction. Enterprises are finally understanding that security cannot be an afterthought and seem to recognize where the vulnerabilities lie within their organizations. It is important that business leaders understand the way teams, internal processes, and external factors can potentially impact cybersecurity; in being aware of these things, a strategy can be created to help mitigate risk.

Here are 3 Security Concerns Financial Services Should Be Aware Of

    1. Most breaches occur within the organization

Of the surveyed companies, PwC found that 59% have an employee training and awareness program. As most breaches occur due to employee negligence, these new training programs are crucial in helping team members to understand and implement the appropriate security best practices. Knowing where vulnerabilities lie within the organization, and training teams to avoid them, is crucial to mitigating future risk.

    2. Third-party vendors are risky

Third-party vendors pose a security risk. Although these organizations likely set security standards of their own, they might not meet the rigorous ones that you set for your own organization. Additionally, it is very difficult to be sure they are actually following their security best practices. Just as a breach can occur within your organization due to employee negligence, breaches can also occur at third party vendors for the same reason.

    3. Consumers are worried 

Keep Data Safe73% of consumers in the UK said they are worried about how data is being handled by the businesses that gather it. This statistic comes as no surprise as the news is bombarded with stories about the latest data hacks. Companies want to make money, and they cannot do so if customers continue to lose trust and take their business elsewhere. This monetary impact has led to a big change within organizations. 59% of those companies surveyed by PwC have a CISO that is in charge of security.  Having someone whose sole responsibility is to oversee, manage, and implement new security measures is a huge step in the right direction.

Thankfully, there are solutions that help make these concerns less scary and more approachable. The more sensitive information an organization holds, the bigger target they are. However, having security weaved into the organization, instead of serving as a bottleneck, will allow businesses to continue operating efficiently while keeping data safe.

 

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