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ComplySci stats: 45% of compliance professionals say the SEC cybersecurity rule will impact their firm the most

While digitalization hasn’t quite resulted in computers and robots attempting to takeover the world (as predicted by the Sci-Fi genre), it has brought about increasing cybersecurity risk and heightened SEC cybersecurity regulations.

And given the very real consequences should your firm fall victim to a cyber attack, it’s no wonder cybersecurity has become such a critical focus area for compliance programs.

How can you proactively prevent such risk?

Protecting your firm against cybersecurity risk

During a recent webinar, we asked attendees which of the SEC’s recently proposed rules and/or amendments they thought would impact their firms the most in terms of compliance duties.

  • Cybersecurity risk management – 45%
  • Private fund investor protection – 27%
  • Registration and regulation of security-based swap execution facilities – 9%
  • Climate-related disclosures – 7%
  • Other – 12%

Their answers were enlightening and highlighted the very real concern the industry and its regulatory bodies have regarding cybersecurity.

At the core of the proposed SEC cybersecurity risk management rule is a need for firms to more proactively safeguard client’s data and information, regardless of fluctuation in work environment and extraneous external factors.

As SEC Chair Gary Gensler put it, “Over the years, our disclosure regime has evolved to reflect evolving risks and investor needs. Today, cybersecurity is an emerging risk with which public issuers increasingly must contend. Investors want to know more about how issuers are managing those growing risks.”

All of which begs the question, what can you do to adhere to the SEC’s proposed rules and protect your firm from cybersecurity risk?

  1. Implement written policies and procedures that are reasonably designed to address cybersecurity risks.
  2. Determine a method of reporting cybersecurity incidents.
  3. Maintain cybersecurity-related records.
  4. Provide ongoing training for all staff members about how to best protect the firm from cybersecurity risk.
  5. Thoroughly screen third-party vendors to ensure they meet your cyber protocols and standards.

It’s clear, today’s digital landscape presents significant cybersecurity risk. However, with the right protocols, both for your internal employees and your third-party vendors, you can rest assured you are proactively meeting this risk with the appropriate measures.

At ComplySci, we are as dedicated to your compliance program as you are, prioritizing cybersecurity measures and implementing the latest protocols to safeguard your firms data.

Ready to see how we can help you mitigate risk and achieve compliance success? Schedule a demo today!