Nowadays, there is a lot of talk about data security but the truth is that few people actually understand what this really means. Data security can be considered as being vital since many businesses these days have access to and store really sensitive information.
Really severe liability risks would appear if data is compromised. This is especially the case when looking at data maintained by financial companies. All information that is utilized to develop accounting records has to be secured. This includes profit distribution, stock ownership, joint venture agreements, wage information and more.
Financial Managers And Data Security
Many corporations look to a financial management employee to actively get involved and prevent data security breaches. James Scott ICIT highlights that this is not something that is easy to do and without proper knowledge, numerous problems can appear.
The most secure option these days is considered to be storing information on private cloud platforms, as opposed to public cloud platforms. Proprietary data that is utilized in financial and accounting environments has to be structured so that access is prevented for unauthorized users. This needs to be done according to country laws and strict rules and regulations.
The financial professional needs to work with the IT department in order to reduce all security risks associated with data. This is only possible after increasing awareness about how often the information is changing, together with the probability that a breach is going to take place.
The flaws of the public cloud environment are mitigated by the use of private cloud environments. This includes generalized security controls, uncertain data storage locations and generalized security controls. Private cloud platform models are highly beneficial for the financial professionals because they gain access to:
- Private secured platforms
- Industry-specific security controls
- Private secured infrastructure
- Specific data location
- A platform that is capable of dealing with sensitive data
- Clear access control
Data Security Liability Risks
There are numerous possible risks associated with data security breaches, especially when dealing with corporations that operate in finances. The big one is exposing the personal sensitive information of people. When information is exposed, dishonest people can end up using the information in a way that will hurt everyone involved. Corporations are going to be sued by victims but huge costs also appear when rebuilding security systems and processing legal proceedings. Recovering from the data losses is just the beginning since brand recognition will automatically be damaged. It is quite hard to recover after the brand’s image was negatively affected by a security breach.
Minimizing Cyber Attacks
Every single business that processes personal information or financial information needs to take steps to minimize the possibility of being the victim of a cyber attack. This is only possible when working with experienced IT security professionals that develop strong data security plans. All plans have to include access requirements, passwords, firewalls and everything else considered to be common practice in data security. If necessary, this needs to be outsourced to a company that has the necessary experience to take all security steps needed to make sure breaches do not happen.