The current financial firms are under pressure to think of cybersecurity as a means to address and fix market standing.
However, as more security breaches expose sensitive financial data, it has become important for CXOs to collaborate and find best-suited security solutions.
Budgetary Security Solutions Call for Strategic Investments
CFOs must be able to use financial data to boost operational decision-making processes better. They must develop strategies that identify the best fit security solutions. This will help them in making strategic investments in cybersecurity. They need to be aware that improving or applying security solutions will need a good investment.
So, amid volatile markets, they can concentrate on ways that lead them to plan for meeting security needs best. This can help financial firms to maintain the scope of security measures for vulnerabilities, attacks, and data breaches.
Ways to Successfully Comply with Budgetary Security Needs
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Include Cyber Insurance Policies
Financial companies need cyber-liability insurance the most. It is important since the finance industry deals with sensitive customer data.
There are several cyber- insurance policies available in the market. Their costs vary based on the service offerings they provide.
- Leaders can find cyber-liability insurance policies that cover:
- Forensic analysis to recover assets technically and legally
- Forensic analysis to identify attack sources
- Extortion cases by threat attackers
- Network attacks by third parties
- Credit monitoring services
- intentional reputational loss
- Loss of income
- Media content discrepancy
- Regulatory defense and penalties
Looking for cyber insurance to protect assets and claim recovery is also beneficial. With compliance penalties and settlement costs, financial activities can be protected.
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Build a Strong Security Supported Processes for Finance Teams
CISOs influence the overall cybersecurity strategies in all companies. But since financial sector is the second most prone target for threats such as invoice fraud, online transfer fraud, business email compromise (BEC), and payment fraud, they need to be more cautious.
FBI report Business Email Compromise The $26 Billion Scam shows that wire transfer fraud occurred 166,349 times through BEC. Businesses costed over $26 billion in losses.
FBI’s Internet Crime Report 2022 mentions that FBI received 15,690 complaints about BEC in 2021. Businesses recorded $675 million losses. In 2022, it increased to 23,775 complaints, resulting more than $1.7 billion in losses.
Finance company heads must collaborate with their security leaders and teams to help employees train to spot scams, use email security software across the department and create detailed payment-proof processes.
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Know the Trick to Spot Phishing
Financial services face the most phishing attacks. Attackers duplicate the processes and solutions frequently. As a result, they have access to and control over the company’s financial details.
So, finance industry leaders must also be armed for phishing attacks, they need to have tools and solutions to apply whenever they suspect a phishing email, text, or malicious request regarding financial details. In such cases, adequate training, security processes, and technology can help.
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Benchmark Spending Plans
Financial leaders must benchmark their spending plans. They should do it to determine the budgetary allocation for cybersecurity.
They can study the recent percentage of the company’s revenue and decide on high-risk areas of finance where security solutions are a priority. The hallmark is the losses they will incur in case of a cyber-attack. This can give a good idea of allocating a security solution budget around the revenue.
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Adopt Cloud Application Services
CIOs of financial companies must focus on automating financial activities, applying access controls, and using passwords for every crucial file.
They need to apply innovative solutions. Also, adopting cloud applications will help create a centralized data repository. This way, financial assets can be easily secured and access accurate real-time data.
Customized dashboards help to monitor financial data and create accurate, customized reports faster. This can solve the challenges of siloed financial data and update outdated and manual financial processes.
The next step in this is to choose the right cloud solution. Only some cloud-native applications promise to provide similar safety levels. In such cases, leaders must know if the application will solve their specific needs and stands out at security levels.
A cloud application offers stronger security layers for data than an on-premises system. Before any transition, they must document needs that fulfill critical data security efficiently. For this, consider checking these components:
- Compliance with applications
- Data security options
- Disaster recovery options
- Access controls
- MFA
- Encryption
- Authentication
- Network security
- Monitoring
- Penetrating testing
Also Read: How CFOs Can Streamline Their Tech Stack In 2023
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Apply Agile Management Processes
New financial security risks are constantly evolving. Attackers are also changing tricks and strategies of attacks. That is pushing leaders in financial sector adopt agile security programs. Proper agile management processes to respond are essential.
Financial services and firms need to manage security by following best practices and staying resilient.
Agile management of all financial processes will aim to improve operations, customer services, and other key financial disciplines. The management process includes major security solutions, including efficient software usage, firewalls, MFA, 2FA, and other strong solutions.
Managing agile security programs will keep attackers away. Financial data breach cases will be less, and payment frauds can also reduce. However, the important thing is CISOs must make the right security decisions at the right time. They need to make informed, strategic, and collaborative decisions that can cost businesses in powerful ways.
Cooperative Relationships between CISOs and CFO Must Flourish
Financial risks and cyber-risks are interconnected.
Following the best practices of operational risks, and analyzing the risk in every financial service, are crucial to maintaining a hygienic risk-free finance environment.
