3 Steps to a Safer RIA

Avoid needlessly installing or connecting devices to the public internet at the office. Devices from refrigerators to coffee machines can be connected to Wi-Fi. While this offers convenience, each device is a potential gateway to the rest of your office network. Does this mean firms shouldn’t connect anything? Of course not. Just be thoughtful about what you do connect, and, most importantly, keep up with system updates and patches for every connected device.

2. Reduce risk from employees.

No firm wants to believe its own employees would steal valuable data and exploit it for personal gain. But there are easy ways to prevent that risk without creating a culture where employees feel you don’t trust them. These steps can help:

Never share passwords. Ensuring no one uses someone else’s password is a big step toward good security. When employees have their own login credentials, you can audit who, what, and when employees accessed different systems, and system access can be cut off for departing employees without disrupting other team members’ work. This practice starts at the top: management may be tempted to share passwords with assistants so they can handle administrative or business processes for them. Don’t do it!

Set hierarchies and access levels to data. Not everyone needs access to all files and systems. Classify and separate data by sensitivity, and give employees access only to the areas they need. This is one of the easiest ways to manage risk and keep sensitive data out of the wrong hands.

3. Preserve business continuity.

Technology disruptions aren’t always the result of a hack or ransomware. A loss of power or natural disaster can also cause firms to lose access to systems. These steps help preserve continuity:

Move systems to the cloud as soon as possible. Cloud-based data and software solutions offer security benefits, but converting to the cloud can be a time-consuming project.

For teams that have put off the transition, consider these two factors as you think about technology strategy in 2022: First, with every passing month, the amount of data you have to convert only gets larger. Second, it’s best to convert everything when your team can be calm and strategic, not when panic forces change.

Keep investing in remote-work capabilities. If a firm stays up to date with new cloud-based and remote technologies and updates file sharing, chat and other capabilities, employees can migrate to a remote work environment more quickly if needed.

Avoid local software installations. By switching over to cloud-based applications, as opposed to installing software locally on a physical hard drive, employees no longer face the risk of losing a favorite business app that is only installed on select computers or within a select office.

Use a cloud-based password manager. With passwords saved in the cloud, they don’t die along with the physical device they were stored in.

With these steps in place, RIA leaders will sleep more soundly knowing their firms are better protected on the cybersecurity front and can focus on helping clients navigate market volatility.

Manuel Balderas is chief technology officer of  Income Lab.