Safeguard your cybersecurity
Since the outbreak of the coronavirus pandemic, the internet has become an important channel for financial institutions to provide their services. But while the cyber technology can help PEVC companies boost efficiency, it also carries risks. Charles Yu, Chief Operating Officer of Linnovate Partners, explains what PEVC companies can do in the post-pandemic era to improve their cybersecurity.
Q1. How have the operations of financial institutions changed since the pandemic? What impact have the changes brought to PEVC enterprises?
Yu: For fund managers of PEVC companies, working from home has become the new normal. A great deal of important data has moved online. To a certain extent, the pandemic has altered the structure and dynamics of risks, in that the cybersecurity and data security issues of many enterprises have become more prominent.
We have adopted new ways to upload and download data, send emails, take part in online conferences and share data. While these means serve to enhance work efficiency, they also bring new data security risks to PEVC firms. Given the potential threat to fund managers’ credibility, the PEVC sector should pay more attention to such risks.
Q2. What should financial institutions do to lower cybersecurity risk? In particular, what resources should they invest in?
Yu: To overcome cybersecurity risk, they should diversify management of the application systems and security of different departments, and create an integrated management system. The internal organization systems of financial institutions should incorporate all related departments and employees in their cybersecurity agenda.
At Linnovate Partners, we have put in place a secure email network that can ward off cyber threats before they ever get into our email server. The measure protects us from spam emails, viruses, malware, and web phishing attacks. In addition, we use mobile device management (MDM) software that allows only authorized devices to access company emails and data.
Q3. What policy reports and industry trends should financial firms pay attention to? What related measures should they adopt?
Yu: For big financial institutions and enterprises with considerable economic strength, we suggest them to take out cybersecurity insurance. By this, I mean insurance plans that offer clients protection in case of internet-related risks, such as data loss and network interruption.
Demand for such insurance plans is growing rapidly in North America. For small enterprises and institutions with a very limited budget, we suggest them to make an effort to safeguard the security of their email systems and mobile terminals. In accordance with related laws and regulations, they need to implement different systems and technical measures, and conduct technical inspections of their email systems and hacking tests in order to protect their cybersecurity. In addition, they should give cybersecurity training to all employees on a regular basis.