Organizations need a complete, accurate inventory to optimize their IT environments for compliance and align them with business objectives. Yet many FSIs struggle to obtain a clear picture of their technology ecosystems; for example, knowing all the clouds in which they have data. In a CDW survey of FSI IT professionals, only half said they are “very confident” that they have sufficient visibility into their cybersecurity landscapes. Shadow IT is another common concern, particularly given the ease with which employees can purchase cloud services. 

Proper asset management capabilities, delivered through software and services, enable organizations to establish and update a baseline efficiently. Governance policies should clarify how much leeway employees have to make technology decisions, while software tools can help IT departments enforce these rules through improved visibility. Partners with expertise in holistic IT assessments can help FSIs understand their technology stacks and identify gaps, vulnerabilities and opportunities. This support can be valuable for FSIs seeking to proactively evaluate their environments as part of a robust risk management strategy.

CLOUD-BASED SECURITY: The cloud adds challenge and complexity to compliance. Many FSIs struggle to gain cloud visibility and maintain proper configurations and controls to prevent cloud-based attacks. A phased approach to cloud maturity helps organizations address these challenges by leveraging regulatory, cybersecurity, and FSI-specific frameworks and standards.

Capabilities should include automated compliance reporting and audits mapped to regulatory requirements, which reduce the staffing burden and support adherence. FSIs also benefit from Infrastructure as Code, allowing standardization and version control to minimize errors. Multienvironment backups and disaster recovery capabilities let FSIs leverage the cloud for rapid recovery and minimal downtime. Finally, standardized controls and Policy as Code facilitate consistent enforcement, automated policy updates and overall risk reduction.

ACCESS AND AUTHENTICATION: FSIs must be able to control data access by effectively authenticating users and managing user identities and permissions. Network capabilities should include role-based, least-privilege access controls, device verification tied to security policies, and integration with endpoint security solutions to ensure devices have up-to-date anti-virus protection and patching.

MFA is essential for reducing the risk of breaches via compromised credentials, a common vector of attack. Biometric verification is widespread in the industry, although many FSIs have not yet determined how to protect against attacks using deepfake credentials. Identity and access management (IAM) controls should be centralized, with single sign-on access permitting seamless authentication. These and other solutions allow for a zero-trust approach that improves overall compliance and reduces risk.

FSIs that effectively address their security and compliance challenges stand to gain significant benefits: enhanced compliance, stronger risk management and increased efficiency.

ENHANCED COMPLIANCE: An effective compliance department requires a solid understanding of the technical environment and data assets across the organization. Teams also need the resources to manage emerging areas of concern, such as AI, and assess how to leverage new tools in service of compliance objectives. Organizations that develop these capabilities achieve higher levels of regulatory compliance, reducing penalty risks and enhancing their reputations within the industry.

It’s easy to conflate compliance and security, but a well-rounded compliance effort goes beyond that. Multiple factors shape and determine the effectiveness, efficiency and maturity of an FSI’s compliance practice. A partner can help organizations bring all these elements together for a comprehensive, coordinated approach that aligns security and compliance.

IMPROVED RISK MANAGEMENT: Addressing current risks while preparing for those of tomorrow is challenging and essential in the fast-changing regulatory landscape of financial services. By implementing advanced risk management solutions, FSIs can proactively identify, assess and mitigate potential threats while maintaining regulatory compliance.

For many FSIs, third-party suppliers are a top concern, with 65% of FSIs reporting that their third-party and supply chain risk management needs improvement. A survey of community and midsize banks found that while most have established auditing and compliance requirements for their vendors, these are far from consistent. FSIs that implement best practices in this potentially high-risk area will reduce the likelihood of a security incident or compliance infraction and reduce their organizations’ liability.