As a financial services firm, your clients depend on your guidance to help them make the most out of their fiscal decisions. From accounting to hedge fund management, your clients gain peace of mind when advised properly. These relationships require trust, often built over time. What would happen if that trust were threatened? How long could you keep your clients at ease if they were unable to retrieve information or make withdrawals? What would happen if you couldn’t get their tax returns filed in time? What would happen if someone’s identity were stolen and you couldn’t access their information to stop it?
In the financial industry, downtime can be detrimental to your ability to do your job. Nowadays, downtime threats are not only weather related. Entire systems can fall victim to ransomware. Individual identities can be stolen. In these instances, your clients will turn to you for financial security. Being able to deliver that service is crucial to your reputation and business’ livelihood.
While you may be taking some precautions, such as securing and backing up your sensitive data, sometimes that’s not enough. There is a common misconception that data is safe if backed up once a day, but this outdated practice is no longer sufficient for several reasons:
Some financial services firms are turning to business interruption insurance to cover the costs to rebuild, restore, or regain lost income. However, while an insurance provider may write you a check for the cost of a server that gets damaged because of a broken pipe, it won’t shield you from damaged or lost client relationships. Ultimately, your reputation isn’t something for which you can easily be compensated.
“[The financial sector is] in some ways the perfect target for the crime,” said Mark Weil, chief executive of Marsh and chair of TheCityUK Cyber Taskforce. “You’ve got a concentration of data and money in the system which is going to attract criminals.”1
It is an important part of the economy in its own right – including related professional services it accounts for over 10% of UK GDP, employs nearly 2.2 million people and contributes £72bn to the trade balance1.
If your company identifies as a business that doesn’t have the IT resources to effectively recover from a major outage, make sure you’re weighing all of the factors around the costs of downtime. Here are the facts:
In the World Economic Forum (WEF)’s Global Risks Report 2016, company executives in eight countries, including Switzerland and Germany, named Cyber Security their top concern.4 Their concern seems justified as 2017 was a costly year for the financial services industry. The Ponemon Institute reported that the cost of cyber attacks in 2017 averaged to $18.28 million per financial services company5. These costly incidents seem to be on the rise, but there are some precautions you can take to safeguard your data:
Any company that has not recently re-assessed its backup and disaster recovery procedures should therefore do so in order to conform to these industry-standard best practices.
Here’s what one MSP had to say about the need for a strong business continuity solution in the financial industry:
“The big thing is that the decisions made in the financial services industry can result in millions of dollars of difference in one direction or another. If systems are down and they can’t make a trade they’ve got a problem. If there’s a hiccup or a problem, being able to failover gets companies up and running. Knowledge is power and the data that they have is their knowledge.” - Paul Riedl, CEO, River Run Computers Inc.
Business continuity describes a complete solution for backup and disaster recovery. A true business continuity solution will protect data on-premises and in the cloud. Whether data is on servers or in SaaS applications, it needs to be backed up. Business continuity goes a step further and offers you the ability to restore your data, which we call disaster recovery.
Whether a business is faced with a natural disaster, or one man-made, a strong solution will have you up and running in minutes. Solutions that leverage the hybrid cloud can guarantee a quicker restore time as well. Why? Local backups are great to keep data stored on local devices, but if something happens to that device, then what? A hybrid cloud backup solution takes an initial backup on a local device, and then replicates the backup to a cloud server. Cloud-only solutions are not as reliable on their own due to bandwidth issues. A hybrid model works to alleviate the vulnerabilities by implementing both processes to fill in the gaps. That’s intelligent business continuity.
Have confidence that your practice is protected against any outage resulting from a disaster. Never worry about the potential financial consequences of such a disaster. Protect your business data no matter where it lives with Total Data Protection from Datto.
Datto differentiators include:
It’s time to safeguard the credibility of your company the same way you safeguard the credibility of your clients. Investing in intelligent business continuity with Datto is an investment in your business’ future.
Sources: 1 Beyond Technology, 2 National Archives & Records Administration, 3 Depository Trust & Clearing Corporation, 4 The Ponemon Institute