Why data security is important

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 held for a financial environment. Information that is used to develop accounting records, such as share ownership, profit distribution, profit sharing, joint venture agreements, or wage and salary information must be strictly secured to prevent unauthorized access by both third parties and others. internal staff members.

The role of CFOs when it comes to data security

With all the networking and file sharing, who is responsible for protecting critical financial data? Corporations often use a CFO or other financial management level employees to participate in preventing a data breach.

Securing information on a private cloud platform has proven to be more secure than using a public cloud platform. Proprietary data used in accounting and financial environments should be structured to prevent unauthorized user access so that there is adequate segregation of financial information. In fact, some countries have reservations about the use of services by corporations using public cloud platforms. Since other customers use the same data center, it also puts outside companies such as vendors, independent contractors, and joint venture partners at risk.

Financial 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 changes on a public cloud platform along with the likelihood of a breach in their data security.

When public cloud environments provide shared platforms, pervasive data security controls, uncertain locations of stored data, and unclear access management, a private cloud environment provides just the opposite. With a private cloud platform model, financial professionals have

• A secure private platform

• A secure private infrastructure

• Industry specific security controls

• A clear and specific data location

• A specific and clear access control

• A conducive platform for highly confidential data

Liability risks associated with a data security breach

One of the biggest risks associated with having a data security breach (particularly data security related to corporations operating within the financial industry) is exposure of other people’s confidential information. Your information could be used in a way that could harm both the Corporation and the other victims. This could create major setbacks for all parties involved. Not only would the victims be able to sue the corporations, but more costs would be required to rebuild a new security system, process legal proceedings, and all the additional costs associated with recovering such losses, including damage to brand recognition.

Some logical steps to minimize cyber attacks

Financial professionals can work directly with the IT department to develop a data security plan. The plan should include an internal cybersecurity system with checks and balances to better protect your critical and most sensitive information. Furthermore, creating an internal cyber security team will also prove to be a means to better protect your data from many forms of cyber attacks.