Take cybersecurity seriously now that everyone is remote

For RIAs choosing a balance between remote and office operations, that is, for all RIAs, this spring is a good time to review your cybersecurity policies and ensure that your logs still make sense given the way you do business today.

Keeping up with privacy guidelines and staying one step ahead of bad actors and cyberattacks can be a daunting task for a financial advisor, but like anything else, very often, getting started is the hardest part. As we move onto a new iteration of working on the COVID-19 pandemic, here are some tips to help you think about how to keep your cybersecurity program on track and comply with regulations.

Update cybersecurity compliance guidelines for remote workers
Thanks to COVID-19, we now know firsthand the big difference between the occasional remote working and setting up for remote working with a regular clip. Your company may now have the technology to support remote working for a while. However, have you implemented up-to-date cybersecurity policies and protocols that protect customer and customer data? Did you test these guidelines to see if they pass regulatory review?

Really integrate the company's fintech and technology stacks
Better management and integration of your fintech and technology stacks leads to better cybersecurity and better data protection. (The company's financial technology stack contains core advisory tools and applications, while the technology stack is the backbone that supports the financial technology stack - such as PCs, laptops, Internet, and technology.) True integration is generally achieved through a hybrid approach to technology reached. Management so your company can comply with SEC cybersecurity guidelines even when your team is working remotely on personal devices.

Budget for potential risk and growth
ARIs typically allocate 1% of their gross annual income to their technology costs. Most of this usually goes to the company's fintech stack, but 20% to 25% usually goes to the tech stack. In order to meet current cybersecurity and operations requirements, it makes sense that most companies are forecasting a 5 to 10% increase in technology spending from 2020 onwards.

Communicate consciously with customers about cybersecurity.
Cybersecurity breaches and data attacks not only affect large social media platforms, but affect companies in all industries, including financial services. Has your company recently contacted customers to let them know about the cybersecurity updates it made to protect their information during the pandemic? When would you like to let them know how your company is protecting your data? Do you also offer advice to customers on how to protect themselves?

Promote a strong cybersecurity culture
Building a cybersecurity culture starts at the top. Cybersmart RIAs go beyond just hiring new employees signing a standard technology policy agreement. They regularly review these guidelines to reflect changes in business. In addition, all company employees are required to review and sign up-to-date technology policy documents annually. Executives share data breach headlines with employees, remind them why certain policies exist, and celebrate the company's achievements in cybersecurity. This could include the number of phishing emails securely quarantined by the company, failed firewall security attempts, or employees actively reporting suspicious activity.

Get to know your suppliers
RIA owners need to understand how and where their technology providers store and protect their data. If you haven't already, you should make regular due diligence on your suppliers regarding your own cybersecurity protocols a priority so that you can give certain assurances to your customers in the event of a problem.

As we enter a summer of opportunity, the ARIs need to devote time to cybersecurity and understand how best to bridge the gaps. Ultimately, a strong cybersecurity program can only improve your current customer service while protecting against potentially devastating data breaches that can ultimately affect your business or your customers.

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