Data security is important because certain companies maintain data that contains exceptionally sensitive information that would create serious liability risks if compromised, particularly data that is maintained for a financial environment. Information used to develop accounting records, such as stock ownership, profit distribution, profit-sharing, joint venture agreements, or wage and salary information must have strict security to prevent unauthorized access by from third parties and internal staff members.
The role of financial managers in relation to data security
With all the networking and file sharing, who is responsible for protecting critical financial data? Corporations often turn to a CFO or other finance management level employees to get involved in preventing a data breach.
Protecting information on a private cloud platform has been shown to be more secure than using a public cloud platform. Proprietary data used in accounting and financial environments should be structured to prevent access by unauthorized users so that there is proper segregation of financial information. In fact, some countries have reservations about using the services of corporations using public cloud platforms. Since other customers use the same data center, you also put outside companies like vendors, vendors, independent contractors, and joint venture partners at risk.
Finance professionals must work closely with IT departments to reduce data security risks. To that end, they must also increase their awareness of how often information on a public cloud platform changes along with the likelihood of a breach in the security of their data.
Where public cloud environments provide shared platforms, pervasive data security controls, uncertain locations of stored data, and unclear access management, a private cloud environment provides the opposite. With a private cloud platform model, financial professionals have
• A secure private platform
• A secure private infrastructure
• Industry specific security controls
• A specific and clear data location
• Specific and clear access control
• A platform that is conducive to highly sensitive data
Liability risks associated with a data security breach
One of the biggest risks associated with a data security breach (particularly data security related to corporations operating within the financial industry) is the exposure of other people’s confidential information. Your information could be used in a way that could harm both the Corporation and other victims. This could create huge setbacks for all parties involved. Not only would victims be able to sue the corporations, but more costs would be required to rebuild a new security system, prosecute legal proceedings, and all the additional costs associated with recovering such losses, including damage to brand recognition.
Some logical steps to minimize cyberattacks
Financial professionals can work directly with the IT department to develop a data security plan. The plan should include an internal cyber security system with checks and balances to better protect your most sensitive and critical information. Furthermore, building an internal cyber security team will also prove to be a means to better protect your data from many forms of cyber attacks.
