The Securities and Exchange Commission (SEC) has made it no secret, cybersecurity is a top priority…and will likely remain so for the foreseeable future.
And rightly so.
The threat and impact of a cybersecurity breach has never been higher, with new and more sophisticated methodologies, cyberattacks can result in a significant loss to both a firm and its clients.
In order to comply with SEC cybersecurity requirements, financial advisory firms must incorporate effective cybersecurity regulatory compliance initiatives into their overarching regulatory compliance program.
Creating a cybersecurity regulatory compliance program designed to meet all SEC cybersecurity requirements
According to a RIA in a Box® and ComplySci® guide published by 51 percent of respondents stated information security and operational resilience was the SEC priority which was the most concerning for their financial advisory compliance program. As the SEC introduces new rules regarding cybersecurity and information security, firms must proactively adjust their firm’s policies, procedures and processes to adequately meet these requirements and protect the firm’s integrity and their client’s personal information.
In order to mitigate cyber risk, your firm needs three things:
- The right people armed with the appropriate training.
- The right technological support to detect risk points.
- A thorough vendor due diligence to assess risk of outside parties which could impact your firm.
However, it can often be difficult to assess how effective your compliance program’s cybersecurity initiatives are in mitigating cyber risk. The NRS Cybersecurity Review can help you identify gaps or red flags in your program before it opens the door for cyber-attack. Working with your firm, NRS experts can help you:
- Assess cybersecurity risks.
- Develop the right policies and procedures.
- Train staff to think compliance and cybersecurity first.
- Support the business through annual updates, reviews and strategic planning.
- Test vulnerabilities and application security.
- Manage the security risks with vendors and conduct the necessary due diligence.
Regulatory cybersecurity is and will remain a critical concern for the SEC and, subsequently, those financial advisory firms which are governed by it. Taking proactive measures to adapt your firm’s regulatory cybersecurity program before risk becomes reality will help you remain in compliance and protect yourself and your clients from the potentially detrimental impact of a cyber-attack.
Ready to talk? Schedule a call today to learn more about our cybersecurity offerings across the entire COMPLY™ portfolio.
