It is ironic that the professionals whom many people trust both their entire past AND future to, aka financial advisors, often don’t take potential threats seriously.
Sure, any given wealth managers can fill an entire dinner’s worth of conversation with lengthy discourses on market risk, interest-rate risk, unexpected-death risk, and even global-mayhem risk, but these very same people fail to stem a risk that is largely under their control: cybersecurity risk.
This aversion to take the steps necessary to avert risk is inherent to the human condition. After all, it’s easier to complain about the rising rate of crime in your neighborhood as opposed to enrolling in a martial-art style self-defense course. But the situation shifts from being lackadaisical to negligent as soon as you are responsible for someone else’s security.
According to WealthManagement.com, an examination of over 1,200 investment agencies revealed that nearly 700 had weak cybersecurity insurance measures in place. Many did not employ dedicated cybersecurity experts, nor were there policies in place for the necessary and continual upgrades for relevant software and hardware.
Frank Quinlan, who provided cybersecurity for the U.S. military and currently is a counselor to the law firm Newmeyer & Dillion, recommends that even the smallest of advisory firms subscribe to NASAA’s “Cybersecurity Checklist for Investment Advisor’s.” He additionally recommends reading the “National Institutes of Standards and Technology’s Guide” as a go-to source of how to identify problems and what to do to correct them. Finally, if this is overwhelming, then he concedes that you need to resource a consultant or other cybersecurity tech expert. Following the willful negligence that brought down Equifax, it appears that criminal charges may be introduced against any firm that does not take such tech-threats seriously.
To read about this developing situation in greater depth, it is well worth your time to read the full article below:
The Cybersecurity Problem Requires Human Solutions | Wealth Management