Within the past 18 months, the Securities and Exchange Commission (SEC) has made one thing crystal clear: cybersecurity is a top priority.
Not only have we seen the release of multiple SEC cybersecurity proposed rules, but just last year, the SEC doubled the size of its crypto assets and cyber unit. A clear indication of coming enforcements and potential fines, if there ever was one.
For RIA firms, especially those with limited resources and an even more limited budget, the question is: How can I effectively mitigate cybersecurity risk without straining an already stretched budget?
Addressing the SEC cybersecurity proposed rules in 2023
From our perspective, cybersecurity prevention comes from three pillars:
- People.
- Technology.
- Vendors.
While the security of each pillar will require some investment, there are steps your firm can take to address cybersecurity risk and mitigate potential points of weakness which a cyber attack could expose.
People: When it comes to protecting your firm from the people element of cyber threats, it all comes down to training. Train regularly and train often. Increasing your team’s awareness of threats like email phishing can help reduce the chance that an erroneous click in an email will give way to a costly cyber-attack.
Technology: To protect your firm, you must create and implement the appropriate policies and procedures designed to address the technological risk your firm faces. As each RIA faces unique challenges and risk points, it is essential for your firm to accurately assess any points of weakness which could result in a successful cyber-attack and mitigate those risks with the risk policies and processes to protect your firm, its employees and its clients.
Vendors: When it comes to vendors, it’s all about diligence. Vendor due diligence should be addressed both before the vendor relationship begins and on a regular basis thereafter, ensuring any third-parties comply with your firm’s requirements and processes.
As made obvious by the SEC’s multiple cybersecurity proposed rules, this topic is here to stay. And for firms which have not implemented appropriate policies and protocols, now is the time to address potential cyber weaknesses. RIA in a Box’s cybersecurity solution provides firms with a comprehensive solution to meet the mitigate the many points of cybersecurity risk, from training and email phishing testing, to protocols and vendor due diligence.
Ready to talk cyber? Schedule a demo today!