A wealth management company is an investment advisory service that consolidates monetary services to address their clients’ demands. Wealth management is a consultative practice where the advisory firm gathers information about its clients and develops a personalized strategy to use the right monetary products and services. To protect wealth management data is of the utmost importance. The company uses a wide range of accessible financial disciplines to manage a wealthy client for an agreed charge, for example:
- Economic and investment advice
- Accounting
- Legal
- Tax services
- Estate
- Retirement
Examples of large, well-known wealth management companies include:
- UBS Wealth Management
- Credit Suisse
- Morgan Stanley Wealth Management,
- Bank of America Global Wealth & Investment Management,
- J. P. Morgan Private Bank.
Small and medium sized wealth management companies make up a sizable portion of the industry, but regardless of the size of the company, data protection should be taken seriously.
Importance of Data Protection for Wealth Management Companies
One of the unforeseen results of the coronavirus pandemic is the rise in remote working teams, which is driving an increase in cyberattacks. With over 36 billion data breaches in the first half of 2020 alone, only 5% of companies are properly protected against this danger.
Wealth management firms store data, such as staff and client data, information on products and services, and financial transactions. Business managers make decisions based on this information; likewise, workforces also utilize it to deliver quality goods and services. This makes data a critical business resource that should be considered a top priority to avoid falling into the wrong hands.
The Layered Approach to Cybersecurity
Wealth management organizations should consider the layered approach to tackling cybersecurity when deciding how to protect their technology. This implies that multiple security controls are established to guard various entries to systems.
For example, a layered approach might include executing an internet application firewall, protected email gateways, and endpoint security, instead of depending solely on traditional border safeguards. Although these processes form part of the layered security approach, there’s more to it. For adequate layered security, businesses must consider how they deal with people and procedures by employing multiple elements to guard their data at all levels.
Businesses looking to develop a layered security environment should consider several elements to security, including:
The People
Employees can be the most significant cybersecurity risks, but they can also be a great asset and your front-line defense when well trained and informed. Employees are often targeted during cyberattacks due to their limited knowledge of ideal security practices.
For example, employees are often subject to phishing emails intended to urge them to click on mischievous links or disclose their credentials. Therefore, it’s essential for businesses to regularly train their staff to equip them with knowledge on likely tricks that may expose them to data breaches.
Such training practices go a long way when building a solid cybersecurity culture in the workplace.
The Processes
This security layer guarantees that IT teams proactively set up strategies to respond effectively to cybersecurity occurrences. The team should first begin by designing a response plan to present the organization with routine methods and operational approaches, to address their security concerns and recover quickly and efficiently.
Additionally, consider implementing appropriate backup plans and regularly test them to reduce downtime. This will also enhance data recovery opportunities should an incident occur. Research, gather, and analyze all security threats. All security strategies and resources must be implemented using the latest opportunities in technology for proper threat detection and response.
Technology
There are several security innovations that businesses can implement to improve their defense, yet IT teams must avoid implementing isolated solution points when layering their defenses. You must select tools based on their capacity to develop an integrated and automated security shield that encourages the early detection and moderation of threats.
Present network security demands a layered security approach that considers people, processes, and technology. These factors, together with building a solid security culture, researching threats, focusing on modern resources, and executing the latest network controls will improve visibility and cut threat times, which will contribute to decreasing the effect of cyberattacks.
Contact Axiom today to learn how to protect wealth management data by implementing a layered approach to security. To learn how your wealth management company can keep your business secure with a layered approach to security, attend our Security Webinar on March 30, 2021 at 9 a.m. (ET) by following this link.