RIA compliance is important for advisors these days in the area of cybersecurity. Although the Securities and Exchange Commission (SEC) has not yet formalized specific rules for advisors to follow, they are certainly including cybersecurity as a topic in their examinations of firms. On that topic, recently, I read a brief email from Drinker Biddle, a Pennsylvania based law firm on the topic of how ransomware is on the rise and firms need to be aware of its implications. Ransomware can be malware that encrypts or locks your digital files so you no longer have access unless you pay a ransom to the perpetrator to release your own files.
The article presented these key takeaways:
- Implement and follow robust data security practices.
- Train employees to be on the lookout for suspicious emails and websites.
- Establish business continuity plans that include regular system backups.
- Create and implement rigorous data retention policies to ensure that only necessary data is maintained, this minimizing the amount of data subject to ransom.
I encourage you to review this brief article to learn more about this important topic and to put cybersecurity procedures in place to address this important issue.