Smart investments and data security go hand in hand to ensure safety for businesses and build trust between the business and its customers. While it is tempting to cut down on cybersecurity expenditures during times of economic uncertainty, a pound of prevention is definitely worth an ounce of cure and it’s much more cost-effective to invest in the prevention of incidents than for cleanup and recovery.
While investment banks often have sophisticated security protocols with firewalls and anti-virus software, it’s important for them to remember that a successful strategy for cybersecurity requires more than tools such as those. It also requires best practices such as restricting access to sensitive data to those who require it, and ensuring that the data is encrypted and authenticated. It’s also important that financial institutions invest in the human firewall, since nearly 90% of breaches are caused by employee error.
In addition to avoiding optimizing operations through integrated solutions potential cyberattacks, investment banks can increase their data security efforts through the use of technologies like blockchain. Blockchain technology enhances security by encrypting data at stationary and while in transit and making it inaccessible to unauthorised users. Additionally, it allows businesses to monitor and protect their assets, allowing them to avoid data loss and other grave consequences.
Many financial organizations still struggle with the risk of losing sensitive customer or investor information. Employees are at risk of losing sensitive data when they use their laptops or other devices away from the office, attend meetings offsite or work from home. Investment banks can apply their privacy policies to data regardless of whether the device is connected to a company network or WiFi network, a public one, home WiFi, or connected at all.