Why Financial Planners Needs to Stop Gambling with Data and Cyber Security

Introduction

As a financial planning business with 7 employees managing over $100M in assets under management (AUM), our client recognized the growing importance of data and cyber security in protecting their business from potential risks. Working with 62 Consulting Pty Ltd(62C), they used the 62C data and cyber security governance check list to identify any weaknesses in their procedures, processes, or technical implementation.

It's true that the concept of data and cyber security is often used as a buzzword in advertising, nonetheless its importance should not be underestimated. Data and cyber security are critical for the protection of your business, client data, and reputation. Moreover, as insurance companies continue to tighten their requirements, it can also have an impact on reduced insurance premiums that have implemented best practice data and cyber security governance and measures.

While the government does have a key role to play in helping to protect businesses from cyber-attacks, businesses are ultimately responsible for their own security. Regulators can help to create a guideline for best practices, but it is up to the individual business owners to deploy data and cyber security measures to mitigate the risks.

Data Security Governance

Data security governance refers to the process and procedures for protecting sensitive information related to a business or individual. In the case of our client, their financial planning business handles sensitive financial information for their clients, including payment information for clients, suppliers, and fund managers, making data security governance essential to their operations. Without proper data security measures in place, the risk of data breaches, theft or loss of sensitive information increases significantly.

Our client recognized this risk and used the 62C checklist to ensure their data security procedures were up to standard. By evaluating their current data security measures and procedures and identifying any areas of weakness, our client was able to improve the quality of their data security governance and implementation.

This was achieved through changing the password policies, ensuring proper access control for staff and documenting (and enforcing) the procedures and policies for removing data.

Cyber Security Governance

Cyber security governance refers to the policies and processes in place to protect a business’s computer systems, hardware, software, and electronic data from unauthorized access, theft, or damage. A cyber-attack, such as a ransomware attack, on a business can have a wide range of consequences such as loss of data, operational downtime, financial losses, and reputational damages.

Our client implemented the recommendations from 62C to ensure their cyber security governance was up to standard for a company of their size dealing in the amounts of money they deal with. They implemented an IT security policy, which included documenting when regular security audits would be conducted, processes around ensuring regular hardware upgrades and updates, and updating their business continuity plan. Additionally, training programs were implemented to ensure employees were aware of the importance of cyber security and the role they play in protecting the business.

Conclusion

By completing the 62C checklist and discussion with 62C consultants, our client was able to identify areas of weakness in their data and cyber security procedures, processes, and technical implementation. By addressing these areas of weakness, our client was able to significantly reduce their exposure to potential risks related to data and cyber security threats.

It is important for small businesses, especially those in the financial planning industry, to recognize the importance of data and cyber security governance. Regulators are focusing more on best practice data and cyber security governance as are insurance companies which are placing a stronger emphasis on data and cyber security governance when figuring out business insurance premiums.

While data and cyber security is perceived as having the right technology in place, it should not be underestimated that proper governance procedures and policies also play a key role in ensuring that your business will keep pace with the ever-changing threat environment and allocates resources efficiently, as investing in cyber and data security is not cheap.

Working with 62 Consulting helped mitigate the risks associated with data and cyber security threats Such risks can never be eliminated completely. Not only did our experts identifying areas of weakness and provide recommendations, but 62C also organised and implemented the solutions to the issues from documentation of policies and procedures to upgrading the security on the firm’s security system.

In conclusion, by implementing proper data and cyber security governance, businesses can protect themselves, their suppliers and their clients, ensuring their success in the long term.