Data security is essential for all businesses, but its criticality is increased manifold in the financial sector. Financial Institutions (FIs) have access to private details of their clients to a level comparable only to the healthcare sector. A lapse in data security or a leak of confidential information can cause significant losses for both FIs and their clients. The losses are not limited to reputational damage, sensitive and confidential information, if leaked, can result in financial damage to the clients and the financial institutions involved. Risk and compliance technology can help FIs ensure the security of both their database and the risk and compliance platform.
Risk and compliance technology discussions mainly focus on the improvements that can be expected in risk and compliance processes throughout the organization. What is often overlooked is how these process improvements and other features within risk and compliance management platforms reinforce the security of risk and compliance data. The reinforcement of security is achieved through monitoring, process improvements, and intelligent data management.
Ensuring Security Through Compliance
Keeping financial data secure is not something a financial institution needs to do only because it is beneficial to clients. Regulations require FIs to ensure the safety of confidential financial data being stored in their databases. Many of the compliance-related rules FIs must follow explicitly to protect the consumer and internal data—compliance technology enhances information security throughout the enterprise by process improvements and streamlined workflows.
Intelligent Document Handling
Risk and compliance platforms ensure that the documents and spreadsheets being used within the FIs are transmitted securely, and that access to these files is limited only to the people that need access. There are two components to the improvements risk and compliance platforms enable – data storage and data transmission. Both work in tandem to enhance data security.
Data Storage
Risk and compliance platforms store documents in a secure system that only provides selective access and keeps extensive access records. Read more:https://bit.ly/3tlq26i