The Vital Partnership Between Compliance and Information Security in Protecting Client Data
Data privacy and security are paramount concerns for financial institutions, particularly in branch locations where client information is vulnerable. The Securities and Exchange Commission (SEC) has issued an alert highlighting the importance of addressing data privacy concerns. Various issues and potential solutions have been explored but one critical aspect that is often overlooked is the partnership between compliance personnel and information security experts.
Compliance professionals and information security professionals operate in distinct domains. Compliance officers are well-versed in securities regulations and ensure adherence to legal requirements, while information security (InfoSec) personnel possess specialized knowledge in IT and data protection. Failing to bridge this divide can lead to vulnerabilities and potential breaches.
Establishing a strong partnership between compliance and information security teams is essential for maintaining data privacy and security. By working together, these teams can address potential risks and implement robust policies and procedures. Here are some key benefits of this collaboration:
Ongoing Training and Education: Regular training sessions involving both compliance and InfoSec personnel allow for knowledge sharing and continuous learning. InfoSec experts can provide insights into emerging threats and updates on IT infrastructure and policies. This empowers compliance officers to stay informed and ensure that data protection measures align with the latest developments.
Development of Comprehensive Policies: By working in tandem, compliance and InfoSec professionals can develop well-thought-out information handling policies. Compliance officers can alert InfoSec teams to new regulations and enforcement actions, enabling them to update policies accordingly. This ensures that the firm remains compliant and protected against potential vulnerabilities.
Proactive Risk Mitigation: The collaboration enables the branch inspection team to communicate field observations to the InfoSec personnel promptly. This information exchange allows InfoSec experts to proactively address emerging threats and take preventive measures. Similarly, InfoSec personnel can provide valuable insights to compliance officers on new security developments, allowing them to enhance their oversight and risk management functions.
Protecting client data in branch locations requires a holistic approach that combines the expertise of compliance and InfoSec professionals. Embrace that partnership to create a secure environment for your firm's operations and client interactions.
This information comes from Jerry Danielson who manages the field audit function for a Fortune 500 financial services firm, where he has served in Compliance and Internal Audit roles for over 35 years. His article Detached Location Record and Information Safety: A Commentary on the SEC Risk Alert of April 26, 2023, appeared in the June 2023 editions of NSCP Currents. To receive important information such as this and to review the risks and the associated compliance and supervision suggestions, join NSCP
