Written by: Alex
Technology is consistently and dramatically changing the financial services industry. From regulatory overhauls to cybersecurity threats, organizations must maintain their IT infrastructure and environment to operate efficiently and safely in the consistently changing tech world.
What Financial IT issues should my organization be aware of and prioritize?
Risk management and IT security are arguably the most significant issues targeting the financial IT world today. Hackers are consistently developing new methods of accessing systems, resulting in new security technologies. Failure to prioritize IT security and risk management can result in company ratings decreasing, and potentially a costly negative result.
Some of the most common cybersecurity breach sources that can be disastrous for financial organizations include:
a.) Internal Threats
Many data breach sources originate from employees. Poor security awareness, such as irresponsible browsing, open the door for attackers.
To combat this; your staff will need an efficient and effective antivirus software, firewall, and understanding of security awareness.
Ransomware is one of the most costly and catastrophic security concerns in any industry. It has the potential to hold all of your data for ransom until a hefty price is paid. For organizations with outdated devices or network vulnerabilities, the question is when will our systems be held for ransom, not if.
***Interesting fact: FedEx lost an estimated $300 million dollars during Q1 in 2017 from a ransomware attack.***
c.) Outdated Technology – Software, Computers, Servers, network equipment, etc.
Hackers prey on outdated technology. The lack of updates to software and Windows, as little as a few months, can leave you vulnerable to the latest hacking methods.
The mindset of Finance vs. Technology is vulnerable and outdated. The impact of technology on the financial industry is too extensive to leave little to no budget regarding technology. Below are the most common issues resulting in vulnerabilities to a data breach or lack of efficiency.
a.) Little to no IT budget
If there are financial setbacks in an organization, IT expenses are commonly the first to be cut. A very limited IT budget often results in decreased productivity for non-technical staff, inadequate IT infrastructure, increased stress for your staff, and unpreparedness in the event of an IT disaster.
b.) Poor IT Infrastructure
Many organizations rely on outdated IT infrastructure to keep their systems running. It’s drastically more difficult and time consuming to maintain security and effectively run business applications in this position. As mentioned, outdated technology opens the door for the risk of vulnerabilities.
The impact of technology in the financial industry increases daily. It’s essential to evaluate your organization to see if it’s affected by the common issues mentioned.
The question is not if you can afford to maintain your IT infrastructure. The question is if you can afford the ransom, lost income, and lost faith with customers and vendors if you do not.