NY SHIELD Act Data Privacy Laws

As data breaches increase in frequency and severity, regulators are implementing new data privacy laws to reduce consumer risk.

Currently, there are no comprehensive data security or privacy laws at the federal level. As a result, individual states are implementing laws to protect their residents. Unfortunately, this creates a complex maze of overlapping data privacy laws businesses must follow. The NY Shield Act is an example of one of these laws.

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NY SHIELD Act Data Privacy Laws

What is the NY Shield Act?

The NY Shield Act, or Stop Hacks and Improve Electronic Data Security Act, is a set of laws that require businesses to take specific steps to ensure the security and privacy of sensitive customer data. Implemented in 2020, it amended the New York state’s existing data breach notification law to impose stricter data security requirements on companies to protect consumers’ personally identifiable information from misuse, breach, or unauthorized access.

Who Needs to Comply with the NY Shield Act?

The NY Shield Act applies to all companies operating in New York State or gathering information from residents of New York, even if they are not based in New York or the United States.

What’s Required of Businesses?

Businesses must implement a Data Security Program and reasonable safeguards to ensure private information is stored and erased safely. This prescription includes physical, technical, and administrative controls to protect sensitive information. Additionally, businesses must notify customers whose data has been compromised if a breach occurs.

What Are the Consequences of Non-Compliance?

Businesses must take “reasonable” steps to comply with the NY Shield Act. Companies that fail to take these steps or lack proper security measures could face fines and penalties. Fines for non-compliance start at $5,000 up to a maximum of $250,000, and the state Attorney General can also initiate a civil action case and levy penalties against violators.

Recent civil actions lawsuits for violations of the Shield Act include:

  • Wegman’s agreed to pay $400,000 in penalties in June 2022 after it was discovered that cloud storage containers hosted on Microsoft Azure were left unsecured and open to public access, potentially exposing consumers’ data.
  •  A 2020 agreement with EyeMed that resolved a 2020 data breach that compromised the personal information of approximately 2.1 million consumers nationwide required that the company pay $600,000 in penalties.
  • In 2022, the NY AG and 45 other Attorneys General received $1.25 million from Carnival Cruiseline as part of a multistate settlement after a 2019 data breach exposed the personal information of 180,000 Carnival employees and customers nationwide.

 

“In the 21st century, there’s no excuse for companies to have poor cybersecurity systems and practices that hurt consumers,” wrote NY Attorney General Letitia James regarding the Wegman’s settlement.

Is this like CCPA?

Yes and no. CCPA is a data privacy law, while the SHIELD Act is a security regulation. The California Consumer Privacy Act focuses on data privacy, and the NY SHIELD Act is a security law. The CPRA, a later update to the CCPA, includes data security provisions.

The main takeaway is that, just as with the CCPA, businesses must comply with the Shield Act if it conducts business in the state or collect information from residents, even if the company is located outside the state.

What Are the Key Requirements of the SHIELD Act?

The NY Shield Act requires companies to:

  • Implement security measures appropriate for the size, scope, and type of business.
  • Ensure their service providers maintain the same level of data security as you do.
  • Create a written Information Security Program to protect sensitive customer information from unauthorized access or use.
  • Regularly assess and test the security of your systems.
  • Provide training to your staff on security and privacy best practices.
  • Notify customers in a timely manner in the event of a data breach.

How Can I Comply with the NY Shield Act?

The best way to comply with the NY SHIELD Act is to create an Information Security Program that addresses the requirements of the law. The program should include policies and procedures for protecting sensitive information, such as multifactor authentication and access control measures, regularly testing your systems, training staff on data security best practices, and providing timely notification to customers in the event of a breach. You should also ensure that any third-party vendors you use are compliant.

Data Security vs. Data Privacy: What’s the Difference?

It’s essential to understand that data security and data privacy are not interchangeable terms. While both aim to protect data, they focus on different aspects. Data privacy focuses on individuals and their rights to protect their personal information from being used by companies and governments without consent. Data security protects against unauthorized access to sensitive information by employees, bad actors, or malicious software. Ultimately, the goal is to ensure that data remains safe so that organizations and consumers can trust that their data is being used as intended.

Next Steps for Compliance

The NY SHIELD Act is a vital law for protecting sensitive information and maintaining consumer trust in an organization. Business executives must ensure full compliance with the law, including implementing a data security program, performing routine assessments, and appropriately responding to security incidents. Working with an IT partner experienced with the Shield Act and other data privacy laws and regulations is ideal. Protecting customer data is essential in today’s digital world and can only be achieved through implementing effective security measures.

GDPR Requirements

Businesses today are in a race to become more connected and technologically advanced. With more data available than ever, organizations must implement measures to protect sensitive information from cyber threats and misuse.

This directive becomes even more vital considering the crisscrossing data privacy laws from various sources, including the General Data Protection Regulation (GDPR). While you are most likely familiar with this regulation, it is essential to understand what it entails and how it impacts your organization. Read on to learn more about the GDPR requirements impacting you and your business.

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GDPR Requirements

What is GDPR?

The General Data Protection Regulation (GDPR) was enacted to protect consumer data privacy rights in the European Union. All organizations that manage customer data will be held responsible for its proper handling, regardless of location. Thus, any non-European organization that handles or collects the personal data of EU citizens is subject to GDPR.

GDPR compliance is vital for organizations seeking to protect their customers and business reputation. Non-compliance can result in personal liability, job loss, huge fines, administrative penalties, and more.

7 Must-Know GDPR Requirements

  1. Who does it apply to? GDPR applies to any business that collects, stores, or processes personal data from individuals in the EU, regardless of the company’s location.
  2. What types of data privacy does it cover? The GDPR protects a wide range of personal information, including names, addresses, email addresses, phone numbers, photos and videos, biometric information such as fingerprints and retinal scans, IP addresses, web cookies and browsing history, and more.
  3. What are the requirements of GDPR? GDPR requires companies to obtain explicit consent for data collection, protect personal data, provide access to data subject requests, and notify authorities about data breaches.
  4. What should companies do to comply? First, companies should appoint a Data Protection Officer, perform regular data protection impact assessments, and provide employee training.
  5. What about GDPR and third-party risk management? The GDPR requires companies to establish contractual agreements with third parties to ensure compliance with the GDPR’s data protection requirements. In other words, you are responsible for the activities and compliance of your third-party vendors regarding data from the EU.
  6. What are the consequences of non-compliance? The penalties for non-compliance with GDPR can be up to 4% of global revenue or €20 million, whichever is greater. Furthermore, failure to report a breach in time can cause fines as high as €10 million, which is on top of the cost of notification and any business losses caused by the breach. In addition, non-compliance may result in lawsuits from impacted consumers, business disruption, and reputational damage.
  7. What are GDPR’s implications for data breaches? GDPR requires companies to notify authorities and affected individuals about data breaches within 72 hours of discovery.

Next Steps for Ensuring GDPR Compliance?

The best way for business executives to ensure that their organizations comply with GDPR is to create a comprehensive data privacy and security plan.

  • Conduct a data audit: Identify the personal data your business processes, where it comes from, and who has access to it.
  • Update your privacy policy: Ensure your privacy policy is written in clear language and includes information on how personal data is collected, used, and processed.
  • Obtain appropriate consent: Obtain explicit consent from individuals for collecting, processing, and using their personal data.
  • Implement appropriate security measures: Implement technical and organizational measures, such as encryption and access controls, to protect personal data.
  • Train employees: Educate employees on GDPR compliance and appoint a data protection officer to oversee compliance efforts.

The Data Privacy and Security Landscape

Of course, GDPR is not the only set of regulations you need to worry about regarding data privacy and security. In response to the growing threats from data breaches, your firm must address a whole set of overlapping laws. From other regional regulations like the California Consumer Protection Act to industry-specific requirements, your firm must comply with a complicated compliance matrix.

Working with an IT partner can ensure that your firm utilizes the best practices for all the required regulations and reduce your risk exposure. Doing so will enable you to protect client data, streamline compliance obligations, create a secure online environment, and keep you and your firm out of the headlines.

GDPR compliance is essential for organizations that want to protect customer data and safeguard their business reputation. Therefore, companies should take the steps outlined above to ensure they comply with GDPR, such as conducting a data audit, updating privacy policies, obtaining appropriate consent from customers, implementing security measures, and training employees. Ultimately, these steps will help companies avoid any severe penalties or repercussions due to non-compliance with GDPR regulations.

IT Priorities

Over the past few years, we’ve seen rapid technological changes, a trend set to continue in 2023. As a C-suite leader, it is vital that you are aware of the top IT priorities for this year and beyond. From ensuring robust security measures are implemented to accelerating digital transformation initiatives and managing costs effectively, executives must be prepared in this shifting environment.

7 Top IT Priorities for Executives in 2023

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IT Priorities

 

With the speed at which technology shifts the business landscape, it’s essential to remain ahead of the curve to make the most of technology investments. So here’s a look at seven of the most critical IT priorities for C-suite executives and tech leaders in 2023.

Cybersecurity

If current events are an indicator, cyber incidents will remain a top concern in 2023. There will be plenty of cybercriminal activity from the ongoing conflict in Ukraine, bank failures, a fluctuating economy, technological advancements, and other forces.

According to a recent poll, 34.5% of executives report that cybercriminals targeted their organizations’ financial data. And in that same poll, 48.8% expect the number and size of cyber events to increase in the year ahead.

With that in mind, it is essential for business leaders to continuously review and refine cybersecurity protocols. As the threats become more frequent and intense–from government-backed intrusions to heightened supply chain attacks–security specialists forecast an even more challenging 2023. To stay safe, organizations must remain vigilant and take active steps towards proper protection now.

Some key areas to consider strengthening are MFA, endpoint security and user awareness, zero trust policies, and better evaluation of partners’ and vendors’ security policies and practices by implementing a third-party risk management program.

Privacy and Compliance

Various privacy laws from a slew of agencies and organizations are getting updated or coming on board. As a result, experts anticipate that by the end of 2023, 75% of the world’s population will be covered by a complex network of data privacy regulations and increased enforcement of those laws. As a result, executives will need to allocate more resources toward security and compliance to mitigate risk and avoid costly data breaches and fines and penalties for non-compliance.

Automation with AI, ML, and Low Code/No-code

As we grapple with cybersecurity and compliance demands, resources must be made available for leveraging the potential of artificial intelligence, machine learning, and low-code/no-code solutions to optimize productivity and profitability by 2023.

These solutions are now considered mainstays for market relevance for many verticals, including financial services and life sciences. These technologies enable streamlining workflows and processes and recouping time spent on routine tasks for investment into revenue-boosting tasks. Coupled with personnel labor shortages, AI, ML, and low code/no-code will become integral to aligning IT strategy with business strategy.

Hybrid Workplace

CTOs, CISOs, and executives facing a hybrid model should continue to focus on applying best practices in their implementation. Undeniably, the hybrid model places additional burdens on IT resources, especially regarding cybersecurity and support. But with the right strategy, a hybrid workplace can offer an organization greater flexibility and efficiency. To this end, IT professionals should focus on solutions that enable secure, remote access and collaboration across different teams and offices.

Hiring and Staffing Challenges

Labor shortages in IT and IS will continue to be an issue. As the need to further invest in IT capabilities becomes necessary, many organizations struggle with filling vital roles within their IT departments. Numerous experts are warning that this talent void won’t dissipate anytime soon, so shrewd executives and technology professionals will look beyond internal resources by partnering with a Managed Service Provider (MSP) to supplement their existing capacities.

Emerging Technologies and Trends

And if increased cyber threats, compliance, and labor shortages are not enough to juggle, leaders must also keep up with what is on the horizon with 5G, quantum computing, and other emerging technologies.

5G will continue to transform the banking and financial sectors from improvements like increasing the speed of payments to creating environments for superior data collection and more efficient backend processes. Additionally, quantum computing will bring many challenges and opportunities, including protecting data from quantum-empowered cyber criminals. Working with a strategic IT partner can help executives determine what emerging technologies to invest in and prepare for in the future.

Cyber Insurance

As the rate, intensity, and cost of cybercrime rise, the cyber insurance market is growing more competitive. Many insurers are reevaluating their underwriting requirements and giving greater scrutiny to risk mitigation and security programs. From increasing costs to more reporting requirements, more consideration will need to be given to factoring these changes into your IT roadmap.

Planning and Strategy are Key

With careful planning and strategizing, CXO and IT leaders will be ready to take on these and other critical initiatives this year. With cybercrime and data breaches on the rise, allocating resources to cybersecurity and responding to shifting compliance standards is more important than ever. Automation with AI and ML can help improve workflows and increase productivity. Outsourcing some (or all in some cases) of your IT functions can help alleviate skill gaps and other challenges from labor shortages. Executives must also stay ahead of emerging technologies and changes to the cyber insurance landscape to ensure their businesses remain competitive. By preparing for these challenges, IT leaders can ensure their organizations achieve success this year and beyond.

Multi-layered Security

Are you utilizing a multi-layered security solution? In today’s escalating environment, it is not enough to just have a cybersecurity solution, instead, your company needs a robust multilayered security solution that includes multiple checks and protections against intrusions.

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Multi-layered Security

Multi-Layered Security: How to Improve Your Cybersecurity Strategy

Cyber attacks are increasing at an alarming rate. In fact, global cyber attacks were up by 38% in 2022 over the previous year–and this trend doesn’t appear to be slowing down for 2023 either.

In light of this increase, are you putting yourself and your business at risk because of your deficient posture? The consequences of not being prepared for a data breach, ransomware, or other cyber incident are severe and include:

  • Financial loss from shutdowns and restoration efforts
  • Reputational damage
  • Personal liability
  • Fines and penalties from regulators
  • Permanent loss of proprietary data
  • Exposure of confidential and proprietary data
  • Costly lawsuits from clients, employees, and others impacted by data breaches or loss of productivity from stoppages
  • The complete failure and dissolution of your company

In evaluating your current posture,  it is important to ask yourself the following questions:

  1. When was your company’s last vulnerability assessment?
  2. Have you made the recommended improvements?
  3. Do you know how to address your security vulnerabilities?
  4. Could you defend your current strategy to investors and regulators if a breach occurred?

Defend Against Escalating Threats with Layered Security

The potential risk from a deficient or merely adequate cybersecurity posture are just too significant. The escalating cyber threat landscape requires a rigorous, dynamic, and proactive security strategy. The only way to truly protect your firm from cyber threats is with a robust cybersecurity position. The most secure approach is utilizing multi-layered security protection, often referred to as defense-in-depth. Without this method, your company is an easy target for cybercriminals, and it could  be considered negligent in the event of a cybersecurity incident.

To provide some context—your lax security approach is just as negligent as leaving your front door wide open and announcing to the world that you are out of town for the week.

 

Multi-layered Security

This infographic demonstrates the multilayered approach to security, specific best practices, and their associated Coretelligent solutions.

What Does Layered Cybersecurity Encompass?

Defense-in-depth is a system of overlapping security layers that range from easy-to-implement controls to complex security tools. These layers are designed to create an interlocking barrier, not unlike the security system at your home, which might include a door with a deadbolt, motion-detection lights, security cameras, and an alarm system that act as overlapping protections designed to safeguard your home. These individual protections combine to work as a system that is continuously protecting your home. Multilayered cybersecurity operates in the same manner. And just like your home security defends on two fronts—as a deterrent to criminals and as a barrier for any criminals foolish enough to attempt to break in—a strong cybersecurity posture defends on two fronts.

Our defense-in-depth infographic highlights the cybersecurity best practices that Coretelligent employs, including next-generation firewalls, endpoint detection and response, patch management and security updates, access management policies, advanced spam filtering, and more.

Evaluate Your Current Cybersecurity Solution

Looking to evaluate your organization’s current security coverage? Use our Cybersecurity Evaluation Checklist to help you appraise your firm’s cybersecurity readiness. This checklist is a jumping-off point to help your enterprise determine its ability to mitigate the risk of cyberattacks before it is too late.



After completing the checklist, reach out for questions about how Coretelligent can help to strengthen your cybersecurity. Learn more about what we offer, including cloud-based solutions, backup and business continuity services, IT planning and strategy, compliance solutions, and more here.

How to Avoid Increased Risk from Phishing Attacks

Reports of cybercriminals registering suspicious domains after the Silicon Valley Bank shutdown indicate potential coordinated campaigns to trick account holders and users across industries, including tech, life sciences, and investment firms. Learn how to avoid these phishing attacks.

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What is a common indicator of a phishing attempt

 

Since the news about Silicon Valley Bank (SVB) dropped, much of the focus has been on how the shutdown happened and the implications for the industry and the economy at large. However, amidst the worry about the impacts lies another danger—the risk of increased cyber-attacks, particularly from phishing attempts and other social engineering. Of course, it is essential always to remain vigilant, but bad actors often take advantage of opportunities like this to ramp up their efforts.

A sudden change in business procedures can create a vulnerable window of opportunity for cybercriminals to launch malicious campaigns. As we’ve seen with other incidents, attackers have taken advantage of any vulnerabilities arising from the disruption to perpetrate attacks on other companies.

It has been reported that cybercriminals have been registering suspicious domains after the Silicon Valley Bank shutdown that can be used in coordinated campaigns to trick end-users into sharing sensitive information.

With this in mind, organizations must remain extra vigilant for phishing attempts and other social engineering tactics during times of uncertainty that cybercriminals can exploit.

How to Avoid Phishing Attacks?

Here are some tips to help your firm avoid phishing attacks:

  • Expect an increase in phishing, social engineering, and phone calls and email attempts to gain access to your data and accounts.
  • Attackers will use language to appeal to your emotions. For example, click this now, urgent, your money is running out, etc.
  • Finance teams must carefully verify and validate any account changes or new account requests.
  • Implement multifactor authentication if your organization does not already employ it.
  • Ensure that employees are aware of the increased risk and ensure they can recognize social engineering and phishing attempts.
  • Follow up with a regular training program for end-users to ensure employees are always ready to identify the latest tactics utilized by cyber attackers.

What is a common indicator of a phishing attempt?

  • Here are some of the usual signs of an email phishing attempt. Often phishing schemes will include several of these markers.
  • An email sent from an address that does not match the domain associated with the sender. For example, if you receive an email from someone claiming to be from SVB but with a different domain name in the “from” field, this should be a red flag.
  • Emails with misspelled words and grammatical or syntax errors could also signal a malicious attempt.
  • Emails that include links or attachments should be carefully scrutinized. It is always best to err on the side of caution and not click links or open attachments until you can confirm that they are from a trusted source.
  • Unsolicited emails that ask for or direct you to a link or document asking for personally identifying information (PII) like passwords, wire transfer details, login credentials, or other sensitive data should be treated with extreme caution.
  • Finally, if an email contains a sense of urgency, includes offers of immediate assistance, or requests payment now, this could be a sign of a phishing attempt. Again, be sure to take the time to independently verify the request before taking any action.

If you encounter any of these signs, it is best to flag the email and alert your IT department immediately. Taking precautions to protect yourself from phishing attempts is critical in safeguarding your company’s data.


Related Content: Why are Phishing Emails so Dangerous, and How Can You Spot Them?


It is essential to remain vigilant when there is heightened risk from cyber criminals taking advantage of a highly volatile situation like SVB’s recent closure. By following best practices such as implementing multifactor authentication, conducting end-user training, and relying on a multilayered cybersecurity program, you can protect your business from cyber criminals looking to take advantage of the uncertainty during this and the next inciting incident.

What is Enterprise Data Governance?

Data is the new currency in today’s business climate, and data governance ensures that your company has a secure and organized system for managing this invaluable asset.

Corporate data governance is how an organization manages, analyzes, and leverages data to make business decisions. At its core, business-led data governance combines people, processes, and technology to create and execute standards that ensure data within an organization is accessible, usable, consistent, reliable, and secure.

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Good Data Governance


Key Takeaways:

  • Data governance combines people, processes, and technology to establish standards that ensure the accessibility, usability, accuracy, trustworthiness, and protection of data in a business.
  • Data management is the storing, maintaining, protecting, and analysis of data that functions under the policies and procedures dictated by data governance.
  • A data-driven enterprise’s policies and governance principles should ensure all company information is under control and used effectively.

What is a Data Governance Program?

A data governance program is one step toward digital transformation that combines people, processes, and technology. The primary goal is to guarantee reliable access to data so it can be effectively leveraged. To support these goals, the governance team manages user access and ensures that enterprise stakeholders have what they need when they need it. In addition, the goal of a control program is to protect from data loss, corruption, inaccuracies, and unauthorized access.


Related Content → What is Governance, Risk, and Compliance?


How Does Data Governance Fit into Data Management?

Data governance is a method for managing the roles, responsibilities, and processes of data assets, while data management is the operation concerned with the quality and accessibility of data. Data management includes the storing, maintaining, safeguarding, and analyzing of data that follows the policies and protocols put in place by governance. If data management comprises the tactics, then data governance encompasses the strategy. One comes before the other.


Related Content → Learn more about Data Management.


What are the Key Components of Data Governance?

People, Processes, and Technology

  • People
    It is critical to understand that data authority is not just IT’s domain. It should include people throughout an organization in the data management plan, including executives, IT professionals, and various other stakeholders within the enterprise familiar with relevant data structures. Having key people involved increases buy-in from end-users and increases the likelihood of leveraging the organization’s data. Organizations typically staff data managers and other IT pros to execute hands-on implementation. Some organizations include Chief Data Officers as part of their C-suite to play the lead advocate for their data governance program. Additionally, businesses will often create a committee with representatives from different areas of the organization. It is through this body that enterprise collaboration comes into play.
  • Process
    In data governance, the process is where the work happens. Thus, governance processes are the connective tissue within the practice of governance. From establishing, implementing, and evaluating policies and procedures to measuring and reporting, applying the governance protocol combines a series of careful steps designed to support the organization’s mission and goals.
  •  Technology
    Finally, if people are the who and process is the what, then technology is the how. Technology provides the tools and the infrastructure to support an organization’s data program by maintaining accessibility, security, reliability, quality, and more.

Good Data Governance Program Process


Why is a Good Data Governance Program Necessary?

  1. Improve Efficiencies, Reduce Costs, and Increase Revenue
    A primary goal of data governance is to eliminate data silos that can occur in an organization. When data silos build up, they can inhibit the flow of information and make sharing knowledge difficult. It is a collaborative process that recognizes the value of data. It aims to break down barriers by harmonizing data within an organization through the collaboration and coordination of enterprise data architecture implementation. Ideally, this process will lead to competitive advantages and increased revenue and profits.
  2. Increase Compliance and Reduce Risk
    Another goal is to ensure that data is compliant. That can be accomplished by creating uniform policies and procedures to monitor usage and include enforcement to eliminate risk from data loss and other issues. In addition, data governance can help to strike a balance between data collection practices and privacy mandates.

Data Governance Simplified

On the whole, data governance is the practice of securely managing data so an organization has the business intelligence needed to meet targets and fulfill business goals. A data-driven enterprise’s policies and governance principles should ensure all company information is under control and used effectively.

DOWNLOAD OUR GUIDEBest Practices for Enterprise Data Governance


Data Solutions

Coretelligent partners with a multitude of technology partners to provide next-gen cloud-based file sharing and collaboration. Building upon this foundation, Coretelligent adds its experience, know-how, and support to offer powerful controls for data management. Our approach allows your enterprise to maintain simplicity and usability for your workforce. Providing guidance and support is just part of what we at Coretelligent offer our clients.

Coretelligent’s solutions include IT planning, 24/7/365 support, cloud computing, cybersecurity, disaster recovery readiness, and more. Connect with us to learn how we can assist you with your data governance or other technology solutions.

As a C-level executive in the financial services industry, you are constantly looking for ways to optimize your firm’s operations, achieve strategic goals, and reduce risk. Governance, risk management, and compliance (GRC) can help you do just that.

GRC is a framework designed to help organizations align their objectives with risk management and compliance policies.

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What is governance risk and compliance?

 

In today’s highly regulated business environment, organizations need to have a comprehensive GRC system that enables them to manage their risks effectively, comply with regulations and laws, and meet the needs of their stakeholders. Let’s explore why organizations need effective GRC and how it can help them achieve their strategic goals.

What is GRC?

GRC comprises three key components to align policies, reduce risk, and ensure compliance.

Governance is the process of developing and adhering to policies, procedures, and practices that support an organization in meeting its business objectives. An effective governance system helps ensure that the organization makes decisions aligned with business goals. In addition, by establishing effective governance, organizations can ensure that their plans are being implemented effectively and have the necessary structures, processes, and systems in place.

Risk Management is the process of identifying, assessing, and mitigating risks associated with operations within the firm or from external threats the firm faces. An effective risk management program will help identify potential risks early so that they can be addressed before they become significant issues.

Compliance is the adherence to mandated internal and external standards, regulations, and best practices that must be met for a firm to operate responsibly and fulfill legal obligations. Good compliance requires an effective combination of policies, procedures, training, monitoring, and corrective action.

Why Does My Firm Need a GRC Program?

Financial services firms are under tremendous pressure from increased regulations, heightened scrutiny from investors, clients, and other stakeholders, and rising security risks. However, according to Hyperproof, 65% of businesses still manage IT risks using an “ad-hoc, reactive approach, with siloed processes and disconnected tools.”

A robust GRC response can benefit these firms by helping them address expanding regulations, control risk across all business units, reduce the cost associated with audits and due diligence questions (DDQs), improve compliance processes, and streamline reporting requirements.


Related Content → IT Security and Compliance. What’s the Difference?


By combining these three components into one unified system—GRC—firms can benefit from a variety of outcomes, including:

  • Improved efficiency across departments
  • Increased visibility into compliance requirements
  • Reduced costs through streamlining processes
  • Better identification of potential risks
  • Streamlined reporting
  • Better decision making
  • Enhanced stakeholder confidence
  • Strengthened brand reputation
  • Improved organizational agility
  • Amplified data security and privacy protection

By bringing governance policies and procedures, risk management, and compliance programs together, firms can swiftly adapt and adjust as needed while remaining compliant with all applicable regulations and internal best practices. Moreover, with integrated GRC—it will become easier for executives to confidently navigate today’s complex world of risk analysis and regulatory compliance more successfully.

Solving GRC

In the past, GRC organizations implemented GRC as distinct activities. Processes and systems were created in silos and often in response to a specific trigger—like new regulations, security incidents, or audit findings – without integration throughout the company. The approach created a web of inefficiencies, redundancies, and inaccuracies that left businesses vulnerable to fines and penalties, lawsuits, reputational damage, and even loss of revenue.

In today’s world of increased risks and shifting compliance, it is of the utmost importance to implement a GRC solution that creates an effective foundation for recognizing, assessing, and controlling risks. In addition, organizations must remain continuously vigilant and responsive to the ever-evolving risk and compliance environments with ongoing monitoring, support, and guidance.

GRC tools should also reinforce and streamline your policies, procedures, and processes. Given the complexity of the financial services industry, many firms are choosing an IT partner with domain expertise and one that provides strategic guidance and know-how in addition to a technology platform.


DOWNLOAD → Read more about the must-have elements of a GRC platform and IT partner in Understanding Governance, Risk Management, and Compliance for Financial Services.


Business team and digital transformation consultants talking, How to Prepare for Digital Transformation overlayed in white text with Coretelligent logo in bottom left

If you read our 5 Digital Transformation Success Factors article, you already know that accepting digital transformation as a holistic change is a first step toward success. Even if the need stems from one department, recognizing the ramifications outside of departmental bubbles is key. By taking on digital transformation, you need to be comfortable with and prepared for a total culture shift. Now that you know what success factors contribute to the best digital transformation implementations, it’s time to uncover how to achieve those successes for your own organization.

Important steps to prepare for a successful digital transformation project:

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Business team and digital transformation consultants discussing how to prepare for digital transformation

 

Identify Pain Points

Digital transformation does not mean buying new tech and hoping for the best. Strategic planning is required to ensure your digital transformation solution has successful, wide-reaching impact that helps departments work together. To achieve success, you must consider what those impacts may be and how further opportunities can enhance your business processes. This takes careful consideration and strategic planning.

If you are at the point of undertaking a digital transformation, you probably already know your pain points and needs. But if you have ever lost your glasses only to find them on your face, you know it can be easy to miss things that are right in front of you. A digital transformation consultant can help you gain an objective understanding of your business landscape and determine best how to address your needs. But a helpful first step is to begin listening your teams, customers, and competitor’s clients to prepare your discovery. Here are some suggestions:

  • Listen to your teams: Your team is what makes your business run, so knowing what is or is not allowing them to perform at their peak is critical to your overall success. What are the challenges your team encounters most frequently? What issues are having the most detrimental impact? Are certain processes particularly problematic? Are certain tools constantly failing?
  • Listen to your customers: No business can stay alive without customers, so ensuring their needs are not just met but exceeded is vital. Are your prospects able to easily engage with your products or services? Are you able to quickly react to issues and requests? Are you retaining existing customers? How do you reach them? If via a website or app, are they user friendly? Do prospective customers or existing clients have reason to question how you are collecting or storing their sensitive, personal information? Are you in compliance? How seamless are your transactions? Can you streamline processes such as onboarding or payments?
  • Listen to your competitor’s customers: You undoubtedly have a pulse on what’s happening with your competitors, but this sleuthing can also help you improve and plan your digital transformation. Read their customer reviews and identify common praise and complaints. What are they able to deliver that you don’t? What are they unable to deliver that you could do better? Research your competitors, learn from their mistakes, and see how you can solve their pain points to fix your own.

Take Stock of Your Team—and Your Clients

User adoption is critical to digital transformation success, so evaluating the skillset of your team is an essential step towards that goal. Now that you have listened to the needs of your people, it’s time to step back and evaluate their capabilities. Think about the skills of your team members; are they capable of implementing the changes you need, or will you need to bring in experts? How much training will each department require? How much training will your end users need? Will some customers require accommodation, such as more in-depth training or even retention of traditional processes, to offset steep learning curves? While you won’t have solutions to these questions yet, it’s important to keep them top-of-mind as you prepare for digital transformation. Which is why you must…

Plan Your Communication and Curriculum

Springing new tech on teams may be exciting, but not everyone will have Christmas morning elation. Be prepared for some team members to need more education than others and make accommodations for trainings. Consider training modalities like webinars or knowledge base articles to help support user adoption. The same goes for clients who are accustomed to your platforms.

Additionally, some members may find it difficult to transition away from old habits, which is why early communication is key to prepare employees (or customers) for change. Set realistic goals for transitioning to new working environments and methods, and ensure you factor those deadlines into your project timeline. And be open to feedback. Understanding what is and is not working will help you make enhancements or adjustments that will improve efficiency in the long run. A digital transformation consultant should have training modules baked into their strategy. They will help you navigate how to introduce new working methods to team members, train teams on new tech, and provide resource documentation to help guide the process.


“One of the big roles of leaders [during a digital transformation] is to create a safe, supporting environment where people are able to learn.”

Kristine Dery, Research Scientist at MIT Center for Information Systems Research
How to Nurture a Digital Workforce


Audit your tech

Take stock of the technology that you use. You may be surprised to find that services you already use can be integrated for a more robust solution or include tools that serve your unmet needs. What’s more, you may find tech that you are paying for but not utilizing, or duplicates of the same tools across multiple departments. A good digital transformation consultant will take a deep dive into your IT infrastructure ahead of a digital transformation engagement, but having a basic starting point is a good practice, even if you have an idea of the services or platforms you want to use to modernize your operations.

Consider Your Timeline and Budget

Next, consider your timelines. How urgent is your need? How quickly can your teams realistically adapt to change? Additionally, how massive is the change you are undertaking? Don’t bank on overnight results that are unachievable. Consider working in phases to keep progress at a steady pace without being overwhelming.

Also consider how much you want to invest and what makes sense for your organization. What already exists in your tech stack? What features do you really need? Do you have the right, or enough, people in place to support your initiatives? This can include leveraging ongoing support for managed services versus hiring a whole team.


How a digital transformation consultant can help you prepare for digital transformation:

Partnering with a digital transformation consultant can help you identify your pain points, devise an effective roadmap, and put together a comprehensive action plan that fits within your budget. Coretelligent’s digital transformation solutions, CoreDTS, are crafted to match the business goals of clients, pinpoint any challenges they are facing, and construct technology-driven solutions customized to meet their needs. Using agile methodology, our build-and-operate approach keeps projects running smoothly while managing costs and maintaining clear expectations for tasks. From development to deployment, to maintenance and enhancements, our clients are fully supported throughout their journey. To learn more about how we can help you on your digital transformation journey, contact one of our experts today.

Serious person working on laptop holding papers, 5 Signs Your Business Needs Digital Transformation overlayed in white text with Coretelligent logo in bottom left

Digital transformation is no longer a luxury for businesses—it’s an absolute necessity. Organizations that fail to invest in digital technology and transform their operations risk becoming obsolete in the ever-evolving business landscape. But how do you know when your company needs to make the switch? We break down the top five signs your business needs digital transformation.

Five signs that you could benefit from digital transformation services and solutions:

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Serious person working on laptop holding papers representing the signs your business needs digital transformation services and solutions

 

Your Productivity Stinks

Issue: Manual operations and outdated processes are inhibiting progress.

An effective, efficient team is critical to your bottom line. If your workforce struggles to meet deadlines, fulfill requests, or hit targets, it is time to address the roadblocks hindering their success. One of the biggest signs your business needs digital transformation is likely the most obvious: overreliance on analog operations.  Analog operations, such as paper document management or manual data entry, are some of the biggest culprits of lost time and data errors. Clunky, multi-step processes that rely on disparate, disconnected systems can also slow down performance. And accessibility issues—from remote office workers struggling to connect to on-premise servers, to personnel in the field unable to access or view information on the road—can negatively impact productivity by inhibiting secure collaboration.

These digital transformation solutions and services can modernize existing processes, streamline operations, and automate manual tasks for improved efficiency:

  • Workflow Automation
  • Data Integration
  • API Integration
  • Data Visualization
  • Application Development

You Aren’t Making Data-Driven Decisions

Issue: Lack of proper data management bars you from gaining insights.

Data is being captured at an astronomical pace that is growing every day. But no matter how many data points you collect, if you don’t have a way to properly store and synthesize that data, you simply cannot make fact-based, data-driven decisions. Common data management pain points include overwhelming amounts of data that are impossible to manage; data coming in from different sources that require consolidation; discrepancies in data and reporting; too much time list to report generation; and the inability to access historical data for trend analysis.  An effective data management system can help you store, organize, and analyze your data, and provide you with an information-rich resource to enable data-driven decision making.

Data management services that can help you gain actionable insights include:

  • Analytics Services
  • Data Integration
  • Dashboards, Reporting & Visualization
  • ETL (Extract, Transform, Load) Services
  • Data Warehousing and Data Lakes
  • Data Quality
  • Data Governance
  • Database Administration

Related Content → Read about Coretelligent’s data analytics, data management, and business intelligence solutions → Data Management from Coretelligent


Your Competition is Winning

Issue: User delight is down, impacting customer retention and acquisition

If you are trailing behind your competition, chances are digital transformation can help in a variety of ways. Most directly, digital transformation services and solutions can provide an easier, more accessible way for prospects to connect with your products and services, while also helping to build trust with existing customers. Additionally, lost opportunities due to poor data management and the inability to act quickly to user demands can negatively impact your bottom line.

Digital transformation services that can have direct customer impact include:

  • UI/UX Services
  • Web Development and Enhancements
  • Application Development
  • API Integration

“The point of digital transformation isn’t to become digital.
It’s actually to generate value for the business.”
Rodney Zemmel, McKinsey & Company

You Are Losing Money

Issue: Maintaining the status quo is becoming a financial burden

Operational expenses will always be part of doing business, but an allegiance to your legacy tech or resistance to upgrading your operational processes could literally cost you. Switching from manual to digitized processes can come with obvious savings, from reduced on-premise server maintenance costs to decreased spending on physical document management. But you may be surprised at how much you are losing on legacy tech and existing systems that can be upgraded with cheaper, more effective tools or revamped to serve you better.

How digital transformation services and solutions helped reduce costs for a leasing client:

  • Coretelligent’s digital transformation services team, CoreDTS, helped a financial services client slash the bill of a popular CRM by creating an API in their web application that called on the same data using a different method. This change reduced the number of licenses required to access the data and in turn lowered their subscription cost. Finding unleveraged tools within your existing platforms, such as MS 365, or missing integration opportunities are big areas where money—and time—can be saved.

Related Content → Read about Coretelligent’s Workflow Automation Solutions


Your Business Has Changed

Issue: You need to adapt to your new normal

Has your company switched to a hybrid or remote workplace? Have you undergone a fundamental business transformation, like a merger or acquisition? Has your footprint expanded to include new divisions or locations? If any of these situations are familiar, you must adapt to your changing business needs. This includes ensuring remote workforces can continue operations smoothly and securely; ensuring data from merged businesses is strategically consolidated and leveraged; and that your business is prepared for growth and the increased level of data, security, and compliance that may be required.

Key areas of business transformation opportunity can be found in these digital transformation solution sets:

  • Data Management, Analytics, and Business Intelligence
  • Workflow Automation
  • Compliant Infrastructure
  • Emerging Technology

Digital transformation is an essential part of successful business operations. Now that you know the signs your business needs digital transformation, you can take a more proactive approach. By investing in modernizing your organization and embracing technology, you can stay ahead of the competition and continue to remain profitable. Make sure to assess your current systems and processes regularly and invest in new technologies as needed so that you can remain competitive in today’s marketplace. And if any of the signs listed above are present at your company, it may be time to consider leveraging digital transformation services and solutions.

To jumpstart your optimization journey, connect with Coretelligent’s team of digital transformation experts and get started on your path to success.

SOX Compliance Requirements

As cyberattacks increase and intensify, the hardening of security measures becomes even more of a necessity, as does compliance with a network of laws and regulations, including SOX compliance.

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SOX Compliance Requirements

What Is SOX Compliance?

First passed in 2002, the Sarbanes Oxley Act (SOX) requires publicly-traded companies to maintain transparency in financial reporting, preventing fraudulent accounting activities, protecting investors, and improving investor confidence.

The Act includes compliance requirements about external auditors, corporate governance, internal control assessments, and financial disclosures.

SOX IT Compliance Requirements and Reporting

When it comes to IT, SOX compliance requires firms to have policies and procedures in place to prevent, detect, and disclose material cybersecurity risks and incidents. Companies also need to prove that they have data safeguards and procedures in place and that they are operational. This includes quality access management, preventative security measures, and redundant and secure backups.

Additionally, another requirement is that security systems must be able to detect data breaches, and the organization needs a communication plan for notifying leadership and investors of identified breaches. In reporting and during an annual SOX compliance audit, businesses must attest to and provide evidence that these internal controls exist.

One extremely challenging SOX cybersecurity requirement is that businesses are responsible for reporting material cybersecurity risks within four business days after the registrant determines that it has experienced a material cybersecurity incident. This can mean that an organization must disclose a risk or incident before regular reporting or a yearly SOX audit.


Related Content → IT Security and Compliance. What’s the Difference?


SOX in 2023

In both 2011 and 2018, the SEC published guidance for interpreting existing rules in connection with cybersecurity threats and incidents.

However, in 2022, the SEC recommended a proposed rule that would require registrants to provide enhanced disclosures about “cybersecurity incidents and cybersecurity risk management, strategy, and governance.” This rule is part of the Fall 2022 Unified Agenda of Regulatory and Deregulatory Actions released by the Office of Information and Regulatory Affairs. SEC Chair Gary Gensler released a statement in early 2023 acknowledging the Commission’s support of the proposed agenda.

It is significant to note that SOX requires signing officer(s), typically an Executive Officer, to attest that the information in their internal control and financial reports is accurate. They cannot contain any false statements, nor can they omit material information. They also need documentation demonstrating that the organization is SOX compliant. Intentionally or inadvertently generating misleading compliance reports or falsifying information not only leads to noncompliance but can also result in upwards of $5 million in fines and 20 years in prison.

In 2022, the news that Uber’s CISO was convicted of federal charges for failing to disclose a 2016 data breach broke, demonstrating just how severe the consequences of non-compliance can be for individuals as well as companies.

Understanding Risks and Their Impact

How do you know what your material cybersecurity risks and incidents are? How do you know if your firm has experienced a breach?

If your IT team does not have the expertise to continuously analyze risks and understand SOX compliance requirements, they may not see correlations that signify a material risk. Without expert guidance, your firm may miss the context or severity of threats. Businesses may not report minor security incidents deeming them to be immaterial. But what if all these smaller threats and incidents turn out to be a much larger problem? Unable to see the connection between events, an organization could unintentionally omit a material cybersecurity risk in its reporting.

Even worse, failure to evaluate the risk appropriately can lead to security breaches, data loss, lawsuits, and other costly damages.

With such high penalties for failure to appropriately disclose material cybersecurity risks and incidents, it is critical for businesses to implement compliance processes and risk management practices to identify and assess threats across their network. Identified risks need to be assessed and treated appropriately and promptly. This process of assessing and implementing measures to modify risk is known as risk treatment.

To understand the risks in your firm’s environment, it needs continuous network monitoring and the expertise and systems for evaluating and conducting a risk assessment. Partnering with an IT firm with specialized knowledge of the compliance requirements outlined in SOX is ideal to ensure compliance and improve your security posture.

Actively Monitoring for Cybersecurity Threats

There is a difference between performance monitoring and cybersecurity monitoring.

Performance monitoring lets you know if systems are operating efficiently, but it doesn’t tell you what security threats exist or the severity of those risks.

In 2023, the risks from malicious cyberattacks and technology are substantial and are a constant threat. It is no longer acceptable to run occasional cybersecurity scans and assume you are seeing an accurate picture of your overall security posture. Instead, to have a complete understanding of the risks and incidents that occur on your network, you need 24x7x365 activity monitoring.

With a managed detection and response (MDR) platform, a team of security analysts with skills in forensic analysis can identify, evaluate, and provide a response plan to threats and breaches within your network.

SIEM Technology

Without the help of security analysts and security information and event management (SIEM) technology, you may not see the significant link between small risks or incidents.

Security experts use SIEM platforms to correlate and analyze threats. This helps to provide context and severity of risks, which is instrumental in determining materiality.

Keep in mind that you need a security expert to utilize the full benefits of these types of internal security controls.

Meeting SOX Compliance Requirements with Comprehensive Cybersecurity

As mentioned, to maintain SOX compliance, your organization needs to be able to measure the materiality of cybersecurity risks and incidents.

Without the right tools, expertise, and testing, your business could experience a breach causing tremendous financial costs, permanent data loss, or even closure.

Even if your organization is not required to be SOX compliant, implementing internal controls and data protection procedures increases your overall security posture. For a private company or a non-profit, which are not mandated to have SOX compliance programs, creating and monitoring security controls is considered to be a cybersecurity best practice.


Related Content →  Evaluate your security readiness with our  Cybersecurity Checklist.


To learn more about SOX cybersecurity and compliance solutions, reach out to Coretelligent’s team of experts.