Financial Services Institute: OneVoice 2014

Which firms are most at risk for cyber-attacks?

Feb 3, 2014 @ 12:00 am

Runtime: 1:55

David Fetter of Quadron Data Solutions details why it's important for advisory firms to take holistic approaches to shoring up their cybersecurity and discusses the firms most at risk for cyber-attacks.

The Financial Services Institute's annual broker-dealer conference, taking place January 27-29 in Washington, D.C.

Video Transcript

What's interesting, if I knew the main things advisers needed to think about with respect to security that it should be easy-- the real dilemma is the scope of it, everything from what customers are doing with information you might provide to them, how you're managing your office, everything from physical security to passwords, to the applications you're using, to vendors you might bring in for reporting. So, really, the most important thing is to have a holistic program of policies and procedures and reviews that really do look at all aspects of your business, all aspects of your data and ensure that your staff is regularly trained and informed. You know, it's a great question of the big firms versus the small firms and who's a bigger risk, and the reality is a chain is only as strong as its weakest link. And anywhere the data's exposed is a risk. I was actually talking to some larger firms earlier today at this conference, and they made the comment that they often sort their vendors by spend, and they do the most thorough security audits with the vendors with whom they spend the greatest amount of money. Well, they realize the fall in that thinking is even if the vendor doesn't get paid a lot of money, if they have access to the data and they are a weak link, the exposure's huge. So, again, same answer that the scope of the problem, big, small, sophisticated, unsophisticated that's-- the exposure's everywhere. There is a growing awareness of the risks and certainly, some of the things that, you know, didn't actually publicized, security breach is in the last few months have highlighted that. But I think we, as an industry, have a long way to go to really understand and appreciate the scope at all levels.

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