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Most Broker-Dealers and Financial Advisers Have Experienced Cyberattacks


Cybersecurity, technology, cyberattack, data breachCybersecurity is a growing threat for organizations in every industry, including brokerage firms and financial advisers. At least 88 percent of broker-dealers and 74 percent of advisers have been the target of cyberattacks, according to recent results from the SEC's Office of Compliance Inspections and Examinations (OCIE) cybersecurity examination program. The OCIE examined more than 50 broker-dealers and almost 50 investment advisers for its Cybersecurity Examination Initiative.

For more on the SEC's findings, click here.

Brown Smith Wallace has an integrated network of resources to provide specialized services for the regulatory and operational complexities of the brokerage and investment advisory industries.

Cyberattack Prevention
Brokerage firms and advisers have to be far more cognizant of the potential risks that are involved with their technology infrastructure, understand these risks and put the appropriate safeguards in place to mitigate vulnerability.

Conducting a security risk assessment can help an organization understand where potential weak points are in its security infrastructure. An IT assessment conducted by an outside expert will provide objective insight and help reduce cyberattack risks.

Cyberattack Insurance
Prevention is good, but without cyber insurance, an organization is still taking a huge risk. Cyber liability policies are relatively new and come in many forms with various coverage options. An independent review of your situation by a firm that understands insurance, IT and Enterprise Risk Management can help to ensure that you select the appropriate coverage consistent with your situational needs.

Our advice is independent because we don’t sell insurance—we help you devise the strategy that works best for your particular situation and needs.

Gray_LincolnTony Munns, FBCS, CITP, CIRM, CISATo discuss your firm’s IT, cybersecurity and cyber insurance needs, contact:

Lincoln Gray, Partner, Broker-Dealer and Investment Advisory Services | or 314.983.1235

Tony Munns, Partner, Advisory Services or 314.983.1297



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