Data security and smart investments work in tandem to ensure the safety of business and establish trust between the company and its customers. While it may be tempting to cut down on cybersecurity expenditures during times of economic uncertainty, an ounce of prevention is well worth an ounce of cure and it’s cheaper to invest in the prevention of incidents than for cleanup and recovery.
Investment banks often have sophisticated security systems in place, including firewalls and anti-virus software. However, it’s crucial to keep in mind that a successful cybersecurity strategy requires more than these tools. It also requires best practices such as allowing access to sensitive information only on a”need-to know” basis, encryption and authentication. It’s also crucial that financial institutions realize the importance of investing in a human firewall because nearly 90% of breaches are caused by employee error.
In addition to protecting themselves from potential cyberattacks, investment banks can increase their security measures by implementing technology like blockchain. This technology improves security by encrypting information at the point of storage and during transit which makes it impossible to read for unauthorised users. It also lets businesses keep track of their assets and secure these assets, helping them avoid data loss and other negative outcomes.
Many financial institutions still struggle with the fear that sensitive information on investors or customers could be lost. Employees can lose sensitive data long-term investment when they use their laptops or other devices away from the office, go to meetings offsite or work at home. Through the use of solutions such as DLP investment banks are able to implement their data security policies regardless of whether a device is connected to the company network, a public or home WiFi connection, or not connected the Internet at all.