Cybersecurity and Risk Advisory for Financial Firms

Financial services firms handle sensitive financial and personal data, making them prime targets for cyberattacks. Robust cybersecurity measures are essential to protect this data, maintain customer trust, comply with regulatory requirements, and prevent financial losses.

Our solutions are tailored to identify vulnerabilities, assess risks, and implement strategies to mitigate potential threats. We enhance your cybersecurity posture, ensure compliance with industry regulations, and foster a culture of security awareness among employees.

We continuously monitor changes in cybersecurity regulations and integrate relevant updates into our advisory services. We have a dedicated team of cybersecurity analysts who actively track regulatory developments across key jurisdictions, helping firms stay ahead of evolving requirements. By leveraging deep expertise and cross-functional insight, we provide clients with a comprehensive view of the threat landscape and its potential impact on their business.

Employee training is essential for recognizing and responding to cyber threats. We offer comprehensive training programs that educate your staff on emerging threats, compliance requirements, and help foster a proactive security culture. 

The specific regulatory requirements will vary based on the type of firm and the jurisdiction that it operates in. However, common regulations that impact financial services include the SEC’s Amendments to Regulation S-P, the EU’s Digital Operational Resiliency Act (DORA), the General Data Protection Regulation (GDPR), as well as numerous state-level regulations. While no formal cybersecurity regulations are currently in place, regulators including the SEC have made it clear that cybersecurity is an examination priority. The expectation is that cyber risk is adequately managed, despite no prescriptive framework.

Financial services firms should aim to implement encryption and access controls, enable secure authentication, and conduct regular data audits. As privacy regulations continue to evolve, often with broad scope but limited prescriptive detail, firms must identify which laws apply to them and establish clear, defensible processes to demonstrate compliance.

When responding to a cybersecurity incident, an efficient response can mean the difference between a minor disruption and a costly organizational crisis. Firms should create an incident response program that clearly outlines roles, responsibilities, and response plans for a variety of incidents. These plans should then be periodically tested through tabletop exercises and assessed for adequacy and practicality. Firms should also socialize the response plan internally and have appropriate external support on standby.

Firms should implement a risk-based cybersecurity strategy, conduct regular security assessments, ensure regulatory compliance, invest in employee training, and use threat intelligence for proactive defense. 

Firms should perform risk assessments at least annually, and additionally following major system changes, mergers, or significant regulatory updates.

The key to effective resilience is a robust incident response plan that ensures your business can weather disruptions with minimal business impact. Firms can further improve their cybersecurity resilience by implementing continuous threat monitoring, conducting regular security drills, and developing a cyber incident response plan.

Threat intelligence provides real-time insights regarding emerging cyber threats. Firms should use this to anticipate attacks and strengthen security measures. By implementing continuous threat monitoring and developing a cyber incident response plan, firms can improve their cybersecurity resilience.

We offer mock regulatory cyber exams to help firms prepare for examinations by regulators including the SEC, FCA, and FINRA. These mock exams review a firm’s information security program from a regulator’s perspective, identifying potential gaps and areas for improvement.

Penetration testing simulates cyberattacks to identify system vulnerabilities. It helps financial firms uncover security weaknesses before malicious hackers exploit them. There are several types of penetration tests, including internal, external, and application. Each is designed to uncover different types of security vulnerabilities.

Vendors with weak security can expose firms to data breaches and cyber incidents. We evaluate the cybersecurity posture of third-party vendors to identify potential risks. We help clients create policies to vet and monitor third-party vendors, ensuring their security practices meet internal and regulatory standards, and act when they don’t.

Third-party oversight is a growing cybersecurity challenge and a critical area of risk management. Firms should conduct thorough vendor due diligence before onboarding, including reviewing the vendor’s cybersecurity program, reference checking, and assessing contractual remedies, where applicable.  High-risk vendors should be subject to enhanced due diligence involving deeper assessments and periodic reevaluations.