The finance industry has long been beset by twin worries: security and compliance. These challenges are expensive to mitigate. A security breach can cause thousands (if not millions) of dollars in damage, while penalties for noncompliance are not only hefty, but severely damage a firm’s reputation.
ITSM tools can help companies tackle both of those problems by keeping information safe, creating a digital audit trail, and utilizing workflows that ensure compliance – read on to learn more.
Solving Security Issues
Between January and August of 2018, companies in the finance sector disclosed three times as many security breaches as they did during the same period in 2016. Security breaches jumped from 37 to 103, and the top three breaches during those seven months in 2018 comprised more records than the 64,512 exposed during all of 2016.
How can financial services companies protect their customers and investors from data breaches? The answer lies within ITSM software. The best ITSM tools utilize SSL encryption to keep unauthorized parties from accessing information; SSL encryption ensures that all information passed between a server and a web browser remains complete and private. Moreover, they incorporate system redaction security measures, which remove sensitive information to keep it safe.
Overcoming Compliance Problems
Since the global financial crisis of 2008, regulations on the finance sector have increased exponentially. Legislators want to keep consumers and investors safe so that no other meltdown comes to pass again. In the interim, financial services companies have had to contend with a maze of new rules, which in turn has led to high-profile fines and penalties when companies run afoul of regulators.
Fenergo, a client lifecycle management software provider, compiled some startling facts about global penalties levied between 2008 and 2018. For a start, the US accounts for just under half of all global AML/KYC regulatory fines, yet those fines make up 91% of the global value in penalties (which totals over $23.5 billion). The U.S. Department of Justice is the world’s most punitive regulator, levying half of all the AML/sanctions amounts (which comes to $14 billion).
“Compliance with anti-money laundering regulations cost US financial services firms $25.3 billion per year”
ITSM tools allow companies a way to maintain compliance with regulations. The top ITSM tools automate the capture of a historical audit trail. That way, when companies are preparing for compliance monitoring, they can show the regulator the exact steps taken.
Additionally, best-of-breed ITSM software offers proven workflows to maintain compliance with regulatory standards. Your workflow shouldn’t interfere with your compliance to regulations – rather, it should enable you to abide by such rules and PCI and SOX.
“Between January 2017 and November 2018, US regulatory agencies initiated almost 500 enforcement actions”
With the right ITSM tools, financial services organizations should no longer fear the twin challenges of compliance and security. ITSM software helps keep confidential information safe, makes it easier to prepare for audits, and offers you workflows that ensure compliance.