Like every sector, the financial industry utilises and relies on cyber security in a variety of different ways. Unlike other industries, finance is required to meet numerous regulatory and compliance requirements, depending on where in the world they are located. These regulations often come with extremely debilitating punishments for failing to meet them, including huge fines, regulatory investigations, and damaging effects on reputation.
At Wizard Cyber, we have extensive experience working with financial institutions to ensure they are complying with all regulations and compliance requirements. We assist them by putting in place a rigorous cyber security strategy that accounts for current requirements and has plenty of leeway for expansion and changes should things change in the future, such as new laws or amended guidance.
We also assist them by putting in place the infrastructure they need to succeed. This often takes the form of a managed service, where we supply the personnel, infrastructure, processes, and 24x7x365 support.
In this blog, we are going to discuss some of the ways in which the financial industry utilises cyber security, as well as the importance of cyber security in its day-to-day operations.
1. Regulatory Compliance
There are many different security standards within the financial industry, creating confusion and disrupting the cyber security strategies of many organisations.
Many organisations solve this problem by focusing on only the mandatory regulations, rather than any optional ones that might only add reputational and marketing advantages. Whilst this is a temporary solution, it isn’t necessary.
With the right cyber security strategy, financial institutions can achieve all the regulatory standards they like. The major advantage of this is that it decreases their cyber security risks massively and provides a variety of other benefits.
Fundamentally, a rigorous and well-developed strategy and associated infrastructure are required for financial institutions to meet their regulatory obligations and succeed.
2. Protecting sensitive data
Financial institutions store an incredible amount of sensitive data on their customers. This data makes for a very attractive target for cybercriminals, leading to the trend that more and more organisations are being targeted by increasingly advanced cyber-attacks.
Cyber security is crucial in preventing data breaches that would adversely affect both the institution and its customers. A data breach could lead to regulatory fines, compensation, service disruptions, loss of reputation, and a requirement to invest heavily into cyber security at very short notice.
3. Expanding into other markets
Like any organisation that expands into another market, ensuring that your new assets are appropriately protected by your cyber security strategy is vital for their ongoing success.
Financial institutions more than anyone have to consider this when moving into new markets. As they take on new customers, open branches, and seek compliance with new standards, cyber security plays a vital role in avoiding disasters and ensuring a strong reputation.
The sensitive nature of financial data means that your IT and cyber security infrastructure must be in place before an expansion can happen to ensure proper security.
4. Reduce the strain on your in-house security team
Financial institutions often employ an extensive in-house security team that handles a lot of their cyber security needs. Due to the number of attacks and subsequent alerts that these teams have to deal with, cracks can appear if they are undermanned or utilising outdated infrastructure.
A managed security provider can greatly reduce this strain, preventing alert fatigue and increasing the resilience and accuracy of your cyber security infrastructure.
At Wizard Cyber, we offer a fully bespoke, co-managed option for our services that allows your organisation to fill skill gaps in your team, take over certain cyber security processes, and shore up weaknesses to prevent future incidents. This allows your in-house security team to retain control over the cyber security strategy and larger infrastructure whilst promoting a more efficient and effective way of working.
