Preventing a Data Breach: Add Financial Executives to your Security Team

When we think of corporate security breaches, we immediately turn to IT and the security specialists for advice. But, what role can financial executives play in keeping data safe and mitigating corporate security risk? In an article by Dale Dabbs in the September issue of Financial Executive magazine, Dabbs makes the case that security is actually a very real issue for financial executives because, ultimately, they are the ones that have a responsibility to protect their organizations’ bottom line and shield shareholders and customers from unnecessary risk. Dabbs goes on to say that according to a survey by Ponemon Institute, data breaches increase the risk of identity theft and can cost business an average of $5.5 million dollars or $194 per customer record stolen. As we’ve seen time and time again in the news, a data breach can happen to the most respected – and prepared – brands. The fallout can have a prolonged effect on financial benchmarks, customer trust and even an employee’s motivation and performance. In addition to taking a proactive approach to prevent data breaches, businesses are also required to follow federal and state regulations from not only multiple jurisdictions, but also from multiple countries. A penalty for failure to comply can be just as damaging. Financial executives are in a unique position because they have access to a variety of information. Regular internal audits of both financial records and data security systems can reveal inconsistencies early. Careful review of regulatory changes and proactive response can ward off fines for non-compliance. Because financial executives have a voice in determining the value of security and fraud prevention investment, they need to be part of the team to assess current security practices and identify potential gaps. While there are many tools available, the best approach to security includes solutions that help businesses protect intellectual property, personal identifying information and other sensitive details. Implementing plans that address preventing a breach focus on increasing compliance and place an emphasis on proactive, due diligence and should go hand-in-hand with investment in technology. Beyond that, being prepared to respond to a breach will help organizations minimize financial and reputational damage to business and their customers. What is your data security plan? Who drives risk mitigation at your organization? Share your thoughts by leaving a comment below.

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Preventing a Data Breach: Add Financial Executives to your Security Team

When we think of corporate security breaches, we immediately turn to IT and the security specialists for advice. But, what role can financial executives play in keeping data safe and mitigating corporate security risk?

In an article by Dale Dabbs in the September issue of Financial Executive magazine, Dabbs makes the case that security is actually a very real issue for financial executives because, ultimately, they are the ones that have a responsibility to protect their organizations’ bottom line and shield shareholders and customers from unnecessary risk. Dabbs goes on to say that according to a survey by Ponemon Institute, data breaches increase the risk of identity theft and can cost business an average of $5.5 million dollars or $194 per customer record stolen.

As we’ve seen time and time again in the news, a data breach can happen to the most respected – and prepared – brands. The fallout can have a prolonged effect on financial benchmarks, customer trust and even an employee’s motivation and performance. In addition to taking a proactive approach to prevent data breaches, businesses are also required to follow federal and state regulations from not only multiple jurisdictions, but also from multiple countries. A penalty for failure to comply can be just as damaging.

Financial executives are in a unique position because they have access to a variety of information. Regular internal audits of both financial records and data security systems can reveal inconsistencies early. Careful review of regulatory changes and proactive response can ward off fines for non-compliance. Because financial executives have a voice in determining the value of security and fraud prevention investment, they need to be part of the team to assess current security practices and identify potential gaps.

While there are many tools available, the best approach to security includes solutions that help businesses protect intellectual property, personal identifying information and other sensitive details. Implementing plans that address preventing a breach focus on increasing compliance and place an emphasis on proactive, due diligence and should go hand-in-hand with investment in technology. Beyond that, being prepared to respond to a breach will help organizations minimize financial and reputational damage to business and their customers.

What is your data security plan? Who drives risk mitigation at your organization? Share your thoughts by leaving a comment below.