With cyber breaches costing firms upwards of $9 million, having an outdated compliance program could cost…and you quite a pretty penny.
A recent webinar hosted by COMPLY gave insight into how cybersecurity compliance programs address cybersecurity concerns and how programs have sought to keep up with regulatory advancements.
During the webinar, the audience of compliance professionals serving financial advisory firms were polled about whether their current cybersecurity compliance program effectively addresses recent regulatory changes. The results?
Yes – 37%
Somewhat – 44%
We need to update – 19%
Risks of having an outdated and incomplete cybersecurity compliance program
The rules and amendments rolled out by regulators are designed to address the increasingly sophisticated cyber-attack vectors which plague today’s digital landscape. And for those firms that have not prioritized cybersecurity and data protection, the cost could be even higher than a dollar amount.
- Legal and reputational risks.
Noncompliance with cybersecurity regulations exposes financial firms to legal repercussions, including hefty fines. Moreover, in an era where trust is paramount, a breach or non-compliance can tarnish a firm’s reputation irreparably.
2. Cyber threats are evolving.
Cybercriminals are becoming more sophisticated, and their methods are constantly evolving. An outdated compliance program is like a weak link in a financial firm’s security posture, waiting to be exploited. By failing to keep their compliance programs up-to-date, financial firms are putting themselves and their customers at risk of serious financial losses, reputational damage and regulatory penalties.
3. Client expectations.
Clients entrust financial firms with their most sensitive data. In an era of heightened awareness about data privacy, clients expect nothing less than stringent cybersecurity measures. Failing to meet these expectations can lead to client dissatisfaction and attrition.
Five tips to upgrade your cybersecurity compliance program
In the realm of financial advisory firms, cybersecurity compliance is a dynamic process that requires continuous attention and adaptation. These are five tips to help your firm upgrade its cybersecurity compliance program:
- Regular assessments.
Conduct regular assessments of your cybersecurity compliance program to identify gaps. This includes reviewing the latest regulatory changes and ensuring that your program aligns with the updated requirements.
2. Continuous training.
Cyber threats are dynamic, your staff’s cyber awareness and knowledge must be too. Provide ongoing training to ensure that your team is well-versed in the latest cybersecurity best practices and regulations.
3. Collaborate with consultants.
Cybersecurity is complex and so are financial regulations. Consider collaborating with a compliance consultant. Their insights can prove invaluable in tailoring your compliance program to meet specific industry needs.
4. Invest in technology.
Leverage advanced cybersecurity technologies to fortify your defenses. This includes encryption tools, intrusion detection systems and AI-driven security solutions that can adapt to emerging threats.
5. Incident response plan.
Develop a robust incident response plan. In the unfortunate event of a cybersecurity breach, having a well-defined plan can mitigate the damage and expedite recovery.
Complying with COMPLY
Firms that view compliance as a strategic investment, rather than a mere obligation, are better equipped to navigate the complexities of the regulatory landscape and mitigate the high cost of non-compliance, which includes not only fines but also the erosion of trust and reputation. In the wake of cyber breaches costing firms upwards of $9 million, having an outdated compliance program could prove to be a costly mistake.
By proactively updating and enhancing their cybersecurity compliance programs, financial firms can not only meet regulatory requirements but also build a resilient foundation for the future. And to do that, you need a reliable, knowledgeable partner.
Tailored COMPLY™ consulting and technology services help your firm’s cybersecurity compliance programs meet regulators’ expectations. By utilizing COMPLY’s tools and solutions, your firm can ensure it protects its own and its clients’ data.