While most businesses handle at least some customer personally identifiable information on a daily basis, there is little more important than a client’s financial information which consists of what is likely a significant portion of their life savings. Firms that manage investment and savings accounts spend years cultivating relationships with their clients, with complete trust as one of the foundational pillars of these relationships. That’s why strengthening business continuity is so important for financial services organizations.
With data hacks on the rise, financial services organizations must do everything they can to ensure their client’s investments are safe and secure. This also means ensuring they are able to deliver continuous service such as deposits and withdrawals, and even simple account review 24/7/365. Financial services firms must also protect against identity theft and/or impersonation, which can even be more devastating to clients as these types of crimes affect not only their investments, but almost every other aspect of their daily life.
Business Continuity Defined
In order to understand business continuity, it’s important to define it as it relates to data and information systems. In order for a firm to have continuity of services, they must have a complete solution, not just a plan for backup, but also recovery in the event of a disaster. This means client data is protected both on-premise and in the cloud in order to keep data safe and secure, even in the event of a device failure.
Do Your Backups Measure Up?
Companies still working under the impression that a daily back-up of all corporate data is sufficient, are at high risk for significant problems. This traditional way of viewing backups overlooks many gaps including instances such as when those in charge forget to perform a backup or the process fails in some way. Other potentially disastrous scenarios include losing an entire day’s worth of work after a failure and/or lack of backup validation, which is then discovered to be useless when needed for a restoration.
Other issues can occur from only keeping backups on-site, which means if a disaster such as a tornado, flood, or fire should occur, the backups become useless. Incomplete backups that only include raw data, rather than including other crucial data such as server configuration and application files means it could take several days to get fully back online in the event of a system failure.
Finding the Optimal Solution
At this point, smaller financial services organizations may recognize they simply do not have the IT resources to implement the right protective strategies to safeguard their clients from irreparable financial harm. Fortunately, there is still a way to fully protect clients and their investments in the event of a disaster, whether natural or manmade.
For smaller financial organizations, the ideal solution is to outsource their IT needs to a company that also has experience in the financial industry. By partnering with such a firm, smaller companies can be confident they are doing everything they can to protect not only all the valuable assets and information pertaining to their clients, but every online function related to operating their firm.
An IT firm specializing in the financial industry can handle all compliance and regulatory issues that go along with protecting client data, as well as offering their expertise in the areas of timely hardware and software updates and maintenance, and ensuring the integrity of backups and their restoration process in the event that action becomes necessary. A specialized IT firm can also establish and provide continuous review and maintenance of system security practices within the financial firm. With a firm that specializes both in the IT and financial industries, financial services firms can have the best of both worlds and know they are doing everything they can to maintain the assets and the trust of their clients for decades to come.
If you are a financial services firm and are ready to update your data backup strategy to industry standards, please contact us.