Data security and smart investments go hand-in-hand to ensure business safety and establish trust between the business and its customers. Although it might be tempting to reduce cybersecurity spending in times of economic uncertainty, an ounce of prevention is well worth the cost of a pound of treatment – and it’s far cheaper to invest in preventative measures rather than paying for cleanup and recovery.

While investment banks often have sophisticated security protocols in place that include firewalls and anti-virus software, it’s important to note that an effective cybersecurity strategy requires more than tools such as those. It also involves the best practices for granting access to sensitive information only on a need-to-know basis, encryption and authentication. It is also crucial https://24tradeway.com/how-to-use-data-room-software-to-leverage-your-due-diligence-team/ that financial institutions invest in a human firewall since almost 90% of data breaches result from employee error.

Investment banks can boost their data security efforts in addition to being able to avoid cyberattacks. This is achievable through using technologies such as blockchain. Blockchain technology enhances security by encrypting data both at stationary and while in transit which makes it impossible to read for non-authorized users. It also allows businesses to identify their assets and protect these assets, helping them prevent data loss and other serious consequences.

Many financial companies struggle with the possibility of losing sensitive investor or customer data. This can happen when employees take work devices outside of the office, participate in offsite meetings, or choose to work at home. Investment banks can implement their data protection policies regardless of whether the device is connected to a company network or public WiFi, home WiFi, or is not connected at all.