Network Security for the Financial Industry

 

Network security does not mean installing antivirus software or strengthening firewalls. Network security is essential for businesses and organizations that store data electronically. Businesses must have a network security policy that includes periodic assessments to ensure they meet industry best practices as well as comply with laws such Sarbanes-Oxley and HIPAA.

Business continuity planning (or BCP) is a broad term that covers the development of strategies to minimize financial losses, serve customers with minimal disruptions and reduce any negative consequences. BCP encompasses all aspects of a company, but also includes information technology. This includes mitigating possible threat scenarios through risk management practices and assessment sophos España          

Federal laws and industry best practices set specific BCP standards in the financial sector. Federal Financial Institutions Examination Council (FFIEC), lists all standards and report forms that can be used to conduct federal inspections of financial institutions. The FFIEC IT Handbook also contains information about network security. FFIEC IT Handbook outlines a program that audits businesses. It involves the evaluation of risk management practices and compliance to corporate policy. A bank's audit program must identify and reduce the risk exposure.

Gramm Leach Bliley Act of 1999, also known as GLBA, overlaps with FFIEC IT Handbook. It provides additional guidelines for protecting non-public information. Specifically, GLBA mandates that financial institutions have administrative, technical and physical security measures in place to protect against unauthorized access and other security threats. GLBA requires financial institutions to have a risk-based security plan with oversight, risk management, assessment, controls, training, and reporting.

The FFIEC IT Handbook also includes E-banking. This refers to the storage and protection of customer information. Financial institutions are exposed to greater risks when E-banking is used. To combat these, security controls must be in place to protect customer information. Ineffective controls can make a financial institution liable for any unauthorized transactions or violate customer privacy laws.