Cyber threats are (unfortunately) getting more sophisticated than ever before; you may feel like you’re on a treadmill – or a Stairmaster if you’re a hardcore gym goer – trying to keep up with them all. But with cyber threats always evolving, it’s really important to make sure your financial services firm has solid practices in place.
And thankfully this doesn’t have to be complicated. Today, we’re going to be sharing what your top 5 priorities should be when making sure your cybersecurity is up to the FCA regulations. Notebooks at the ready and let’s get started!
1. Master the basics
The more complicated and the less you understand your cybersecurity measures the more effective they are… right? Nope! Before you move onto complicated cybersecurity set-ups, make sure you’ve got your basics perfected. This includes:
- Patch management: Regularly update software and systems to fix security holes.
- Access controls: Limit access to sensitive data to only those who need it.
- Multi-factor authentication (MFA): Add an extra layer of security for user logins as passwords really aren’t enough these days.
- Data encryption: Ensure that all sensitive information is encrypted both while stored and during transmission.
A great way to show you’re on top of these basics is by getting Cyber Essentials certification from the National Cyber Security Centre (NCSC). There are two levels: Basic and Plus. While Basic is a good start, Cyber Essentials Plus is better because it involves a thorough check by an independent assessor so they might pick up bits and pieces that you’ve missed.
2. Think about your operational resilience
This topic might not have you on the edge of your seat with anticipation, but operational resilience is none the less very important. The FCA places a lot of emphasis on it and it’s easy to see why. If your systems fail or are disrupted, even for a short time, it can cause significant harm to your customers and your business. Operational resilience is about making sure your company can continue to operate effectively in the face of cyber threats, hardware failures, or other disruptions.
So, what can you do to make sure that your financial services firm is resilient? Well, we recommend:
- Mapping critical services: Identify the systems, services, and processes that are vital to your business.
- Scenario testing: Walk through different types of cyberattacks or disruptions to understand how your systems would respond.
- Stress testing: Regularly test your systems to ensure they can handle disruptions or high demand.
- Incident response plans: Have a clear, well-practiced plan for dealing with a crisis when it happens. Your plan should also include which people within your business will handle the plan being carried out – don’t forget to have some cover in case they’re on their hols in an emergency!
The FCA expects firms to demonstrate that they can keep things running during and after disruptions. By focusing on resilience, you’re not just protecting your own business, but also reassuring your customers that you’re prepared for whatever cybercriminals throw your way.
3. Cyber threat intelligence (CTI)
Who said knowledge is power? Well, we should listen to that guy because he knows a thing or two! Knowing what threats are out there is key to protecting against them, and that’s where Cyber Threat Intelligence (CTI) comes in. CTI involves gathering and analysing information about potential cyber threats so that your financial services firm can prepare for and defend against them.
So, what the heck does this look like in practice?
- Identify potential threats: Stay informed about new and evolving threats specific to the financial sector.
- Analyse attacker tactics: Understand the strategies and techniques cybercriminals are using so you can tailor your defences.
- Informed decision-making: Use threat intelligence to guide your security policies and practices.
There are heaps of cybersecurity resources online you can access, as well as speaking to IT and cybersecurity experts, reviewing industry reports, and keeping one eye on the news for any cybersecurity news you can apply to your own business.
4. Training and awareness
You can have the best cybersecurity measures in the world, but if your team aren’t clued up on staying secure online, they won’t do you much good. After all, the best technical defences can be undone by human error. That’s why training and awareness should be at the top of your to do list – and this goes for your whole company, not just the IT guys and gals!
Employees at all levels need to understand the role they play in maintaining cybersecurity, from recognising phishing emails to following best practices when handling sensitive information. A few important topics to include in training sessions are:
- Phishing awareness: Show employees how to spot and report phishing attempts.
- Data handling: Make sure everyone knows how to safely handle and store sensitive info.
- Password policies: Encourage strong, unique passwords and require multi-factor authentication.
The FCA expects companies to teach staff about cybersecurity risks and best practices. This should be an ongoing process, with regular training and even mock phishing tests to keep everyone on their toes. When the whole team is aware of the risks, you’re less likely to face accidental breaches or costly errors.
5. Leadership and the board
As we said above, cybersecurity is not just an IT issue, it’s something the whole business needs to care about, and leaders play a big part in making sure it stays important. The FCA expects top management and the board to be involved in planning and decisions around cybersecurity.
Here’s how leadership can stay on top of it:
- Keep it on the agenda: Cybersecurity should come up regularly in board meetings, with updates on any incidents, risks, and how well things are going.
- Know your limits: Set clear guidelines on how much risk the company is okay with, and make sure your cybersecurity efforts match that.
- Allocate resources: Make sure there’s enough money and people dedicated to keeping cybersecurity strong.
- Stay informed: Leaders should keep up with the latest threats and understand how they impact the company.
When leaders get involved, it shows the FCA that cybersecurity is being taken seriously. Plus, it helps make sure security and business goals are aligned so the whole company moves forward together.
Want to know how our IT services can support your financial service firm’s cybersecurity efforts? Get in touch with our friendly team today!