Cyberattacks are taking over news headlines and large corporations are prioritizing securing their information. With the frequency of data breaches increasing, securing Family Offices from cybersecurity threats should be a top priority.
In Citi Private Bank’s Family Offices and Cybersecurity Report Edward V. Marshall, Director in the Global Family Office Group at Citi Private Bank, explores cybersecurity threats posed to Family Offices and how to mitigate them. According to the report, Family Offices are attractive to hackers due to holding a similar amount of wealth as small and medium-sized enterprises without the same enterprise level of security. Marshall lists “security risk from external vendors and partners” as a reason why cybersecurity is a challenge for Family Offices. Partnering with a software vendor who prioritizes protecting you and your stakeholders now saves you from headaches and compromised data in the future.
Most software providers will shower you with promises of providing the most secure solution in their field, but the same due diligence applied to assessing a new investment opportunity should be practiced prior to implementing a new software. Having supported alternative asset investors and allocators of all sizes since 1998, Dynamo Software urges Family Offices to scrutinize a prospective new software provider’s commitment to security by evaluating these qualities:
Where Your Software Hosts Your Family Office Data
Before importing all of your sensitive information into a platform you need to know where it will be housed. Your data should be stored in a way that is secure but does not slow you down. Dynamo gives clients the option of hosting data in a private cloud, which offers more flexibility than some on-premise hosting as well additional security options. Dynamo also regularly backs up client data and has disaster recovery measures in place.
How They Safeguard Your Information
Sharing data with a third party provider jeopardizes the confidentiality of this information. You need to know how this data will be exposed and to whom. Dynamo encrypts clients’ data, adding a layer of protection so that sensitive information is not available to unauthorized individuals.
How They Guard Your User Accounts
Making sure that only the appropriate user gains access to their user account is not guaranteed with simply the creation of a password. Dynamo sets your staff up with two-factor authentication to ensure that a compromised password does not result in disaster. Prior to being logged into an account, the user will be prompted to enter a unique code texted to their mobile phone to prove their identity.
How They Eliminate Threats
If a security vulnerability arises you want your software provider to find that threat and eliminate it before a hacker with malicious intent finds their way in. Dynamo performs multiple ethical hacks a year to mitigate the risk of a cyber-attack.
Why You Can You Trust Them
SaaS providers are expected to participate in an audit to ensure they are in compliance with trust principles outlined by the AICPA. Dynamo invests in this Service Organization Control (SOC) 2 reporting to prove security controls are operating optimally, with all procedures followed accurately and no lapses in security.
Family Offices choose Dynamo to support their client relations, investment research, due diligence, portfolio management, and reporting efforts with full confidence that their data is handled according to industry best practices. Learn more about leveraging Dynamo Software for your Family Office’s front and middle office software.