Data security and smart investments are a perfect match to ensure the safety of business and build trust between the company and its customers. It may be tempting to reduce cybersecurity investment during times of economic uncertainty. But prevention is more effective than cure, and it’s more cost-effective to prevent incidents rather than spending money for cleanup and recovery.
Investment banks usually have sophisticated security systems in place, which include firewalls and anti-virus software. However, it is crucial to keep in mind that a successful security strategy requires much more than these tools. It also involves the best practices for granting access to sensitive information only on a”need-to know” basis and encrypting the information with authentication. Additionally, it’s vital that financial institutions comprehend the importance of investing in a human firewall since nearly 90% of data breaches result from employee error.
Investment banks can increase their data security efforts as well as avoiding cyberattacks. This is possible by implementing technologies like blockchain. Blockchain technology enhances security by encrypting information at stationary and while in transit, making it unreadable to unauthorized users. Additionally, it allows businesses to keep track of and protect their assets, helping them avoid data loss and other grave consequences.
Many financial organizations still streamline collaboration with an efficient data room setup struggle with the possibility of losing sensitive customer or investor data. Employees can lose sensitive data when they use their work-related devices out of the office, attend meetings offsite or work from home. Investment banks can implement their privacy policies to data regardless of whether the device is connected to a company network, public WiFi, home WiFi, or is not connected at all.