Risk Management Software
Risk management software is something that financial institutions of all sizes should incorporate into their daily operations. Especially as technology continues to evolve, and banks become more reliant on computers. Data breaches can be devastating to an organization, and it is essential that firms remain diligent in keeping their information and that of their clients protected.
One tool that is also becoming more common is cloud computing. Banks can lower costs, increase their flexibility, scalability and mobility. However, without the proper understanding of the risks as well as rewards, financial institutions could be endangering sensitive data.
According to an Ernst & Young survey, 59 percent of organizations surveyed said they used or planned to use cloud services, however, 33 percent had not taken any measures to mitigate security risks.
A contribution piece in Bank Systems and Technology said that it will not benefit financial institutions to act ignorant of inherent risks.
“As a cloud adopter, you need to understand your responsibilities and remember that reliance on the cloud service provider is not enough,” the article explained. “Many organizations unknowingly rely on service level agreements from their cloud service provider and assume they are responsible for their data’s security.”
Essentially, it is no longer enough to simply think of security in a physical sense. Cyber criminals will work toward finding ways through a cloud system, which is why banks must employ proper encryption measures and keep employees up-to-date on risk management practices, according to the news source.
Cloud computing might be the wave of the future, but financial institutions will keep themselves profitable in that time when they have the right risk assessment software in place. That way, organizations can pinpoint where weaker areas might be, and can implement necessary counter measures.