Cybersecurity is a growing threat for organizations in every industry, including brokerage firms and financial advisers. At least 88 percent of broker-dealers and 74 percent of advisers have been the target of cyberattacks, according to recent results from the SEC's Office of Compliance Inspections and Examinations (OCIE) cybersecurity examination program. The OCIE examined more than 50 broker-dealers and almost 50 investment advisers for its Cybersecurity Examination Initiative.
For more on the SEC's findings, click here.
Brown Smith Wallace has an integrated network of resources to provide specialized services for the regulatory and operational complexities of the brokerage and investment advisory industries.
Cyberattack Prevention
Brokerage firms and advisers have to be far more
cognizant of the potential risks that are involved
with their technology infrastructure, understand these risks
and put the appropriate safeguards in place to mitigate
vulnerability.
Conducting a security risk assessment can help an organization understand where potential weak points are in its security infrastructure. An IT assessment conducted by an outside expert will provide objective insight and help reduce cyberattack risks.
Cyberattack Insurance
Prevention is good, but without cyber insurance, an organization is
still taking a huge risk. Cyber liability policies are
relatively new and come in many forms with various coverage
options. An independent review of your situation by a firm
that understands insurance, IT and Enterprise Risk Management can
help to ensure that you select the appropriate coverage consistent
with your situational needs.
Our advice is independent because we don't sell insurance—we help you devise the strategy that works best for your particular situation and needs.
Originally published February 2015
The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.
