Wealth management business owner accessing his data on multiple devices through a hybrid cloud.

7 Ways Wealth Management Firms Can Innovate

Innovation never stops. To keep pace with structural market shifts in the wealth management industry, it is essential to continuously introduce new technologies that can radically augment client experiences and support new business models’ viability.

However, to fully harness the potential of digital acceleration, new technologies must critically address consumer needs to make wealth management seamless. After all, relevance is key to staying timely and timeless.

Let’s identify the 7 main innovations that will reshape the wealth management industry in the next few years or so.

Take Your Business Model to the Next Level

1. Artificial Intelligence

Today, wealth management trends and developments are mostly associated with the game-changing technology almost everyone is familiar with—Artificial Intelligence (AI). And no, we’re not talking about androids, but highly intelligent software that plays a role in making wealth managers’ jobs better, faster to accomplish, and more efficient.

Today, customer experience is usually self-directed. There’s also an enormous data explosion among structured and unstructured data. Only big data-driven models, AI, and Machine Learning algorithms can deal with this to deliver the right solutions to relevant customers faster and more consistently. The good thing is that you or your company can easily harness the power of AI to make you more productive.

2. Virtual Collaboration

According to Nasdaq, virtual reality (VR) and augmented reality (AR) innovations help wealth management companies make managed investments intuitive for clients, most especially millennials. As more advisers become better familiarized with their skills and capabilities, the adoption rate of these two developments should increase.

The pandemic has made remote working and virtual entertainment through the cloud more accessible, affordable, and convenient. Businesses and clients meet over video conferencing services. This is a testament to AR’s capacity to help wealth managers provide virtual scenarios that can help their clients vividly picture how they are and what to explore financially.

Using these two technologies to engage clientele and harnessing their game-play to promote effective savings and investment practices is something companies should leverage.

3. Increased Tokenization

The first purely digital non-fungible token (NFT) offered by a major auction house was Mike Winkelmann’s Everydays: The first 5000 Days, which was sold for 69 million dollars. Like this NFT, more are seen to become part of the wealth management mainstream in the next few years.

An asset of a purely digital representation’s ownership rights can now be divided, traded, and stored on the blockchain, a distribution-ledger system. Fractionalizing real objects like properties may be difficult, but representing them as tokens works well.

Today, tokenization is seen to open up markets more and boost liquidity as well as make settlement processes seamless. Some even use reporting frameworks to effectively gauge progress.

4. Advanced Analytics

According to Gartner, AI-powered technologies like machine learning, natural-language processing, and deep learning will facilitate the next big advancement in wealth management analytics. It also noted that it is observing a steady progression in the technology’s deployment.

Fintech analytics systems are poised to be more predictive, offering practical guidance on the steps that companies should take for business development.

Per Grand View Research, the global market for alternative data is forecast to expand at a compound annual growth rate of 54.4 percent, poised to occur sometime between 2022 and 2030.

5. Regulatory Technology

Compliance with regulatory issues is becoming daunting for wealth management firms. And given that the regulatory ratchet turns again with new requirements from the Financial Conduct Authority and other watchdogs, wealth managers will continue to harness technology to ensure compliance.

AI-powered systems and other automated digital infrastructure are seen to take over people’s regular and repetitive compliance routines. Anticipating potential regulatory changes, more companies are seen to proactively approach tasks by using new technologies.

As processes improve, parsing through financial regulation becomes faster and easier with RegTech, allowing wealth managers to get actionable insights into their compliance obligations.

There’s also the option to work with a Managed IT Services Provider (MSP) that can implement these compliance software while offering security and 24/7 IT Support. Although, it’s best to partner with one that is certified under the necessary financial compliance standards such as:

  • Financial Industry Regulatory Authority (FINRA)
  • System and Organization Controls (SOC)
  • The Sarbanes-Oxley Act (SOX)
  • Payment Card Industry Data Security Standard (PCI DSS)
  • Payment Services Directive (PSD2)
  • or the Gramm-Leach-Bliley Act (GLBA)

6. Democratization of Financial Advice

Many people are starting to turn to financial advisors to secure their future. Democratizing financial advice, while still having a long way to go, is becoming the new innovative norm. This means that financial planning and its tools are becoming more affordable, customizable, and accessible for everyone, not just for wealthy people.

7. Stronger Cybersecurity

Wealth managers, as we know, hold millions of people’s personal and financial data, making them more susceptible to hackers. One big security breach may result in fines worth millions or even billions of dollars. Moreover, a company’s brand reputation will also get tainted with public distrust.

As the digital world poses more risks and threats from hackers, the finance industry proactively ramps up its regulatory requirements. It demands beefed-up innovative cybersecurity practices and is expected to require more businesses to comply with more complex regulations for data security.

Future-Proofing the Industry

These are just some of the innovations seen to dominate the wealth management industry going forward. Companies can capitalize on this to fare with the digital trends and ensure data security.

As a result, you can expect an efficient system and cost-effective processes, consistent service, dynamic advice, and responsible investing practices—which all result in customer satisfaction. Schedule a call with Nerds Support to see how we can help your Wealth Management firm use technology to gain a competitive edge!

A distressed business man unsure about how recover his business' data after a cyber-breach.

What to Do After a Data Breach, Loss or Cyber Hack

An unfortunate truth is that data loss, hacks or cyber breaches sometimes happen even if you have already built a robust cyber defense strategy for your business. Even the largest companies in the world with some of the most comprehensive cybersecurity systems and measures in place occasionally experience them.

Of course, hackers and cybercriminals don’t spare medium and smaller-sized organizations. So, what if it happens to you? What would, or rather should you do in the aftermath of a cyber-breach?

Just like the sustainable best practices that you’ve implemented to lessen your business’ impact on the environment, you can also execute guidelines and procedures to soften the blow and limit the damage of data breaches. This is what we aim to help you with today, as well as share what not to do after a breach, or how to find out if your business has been hacked in the first place!

So Your Business has been Breached…Now What?

1. Contain the Attack

While you may believe the best course of action is to outright eliminate all your technology if it’s infected with malware, evidence preservation is essential for determining how the breach occurred and who was involved. Following a data breach, the first step is to discover which servers or devices have been hacked and confine them as rapidly as possible to prevent infecting additional servers or devices.

The following are some immediate things you can do:

  • Disable remote access
  • Disconnect your internet
  • Install any pending security patches or updates
  • Change affected or vulnerable passwords ASAP. Make each account’s password unique and strong, and don’t reuse passwords across numerous accounts.

Should a data breach occur again in the future, doing these things can reduce the damage it will cause.

2. Determine the Source and the Scope of the Breach

Ideally, your business should have Intrusion Detection and/or Prevention systems (IDS and IPS) in place to automatically log security incidents.

You may use these logs to find out where the breach originated, which files were accessed, and what actions the intruder took. The following steps you will take will require this information. If your network doesn’t have IDS/IPS, obtaining this information will take much more time and effort from your IT staff.

If you’re having trouble pinpointing the source and scope of the breach, it could be worth engaging a trained cyber specialist or Managed Security Service Provider (MSSP) to assist you in securing your business in the future.

You’ll also need to figure out who was affected by the breach, including your employees, clients or third-party vendors. To determine the data breach’s severity, take note of what information was accessed or targeted, such as birthdays, postal addresses, email accounts, and credit card numbers.

3. Contact Your Trusted IT Advisor to Assist with the Breach

As technology rapidly evolves and information is passed around so quickly, every company should have a trusted IT advisor or managed IT services provider (MSP) responsible for resolving crises like data breaches. Assemble your business’ task force team ASAP to deal with the breach.

The particular activities you’ll need to take will depend on the severity of the breach. Still, experts advise storing a disk image or copy of the impacted servers for legal reasons at the time of the incident.

4. Put Your Security Strategy to the Test

Test any short-term security fix you put in place to ensure the attacker can’t use the same way to target your business again.

To ensure that the vulnerability does not exist elsewhere, run penetration testing on all of your company’s servers and virtual machines. These are typically the most susceptible tech areas where data breaches occur. Your previous weakness and any additional security vulnerabilities discovered during inspections should be completely patched.

We recommend you consult a certified MSSP about implementing routine Penetration Testing to simulate how your strategy will execute in practice.

5. Communicate with Everyone

Once you have a fix in place, make sure to contact the relevant federal authorities, who may be able to assist you with the necessary instructions for meeting your industry’s post-breach regulatory criteria.

You must also notify your managers and employees. Establish explicit authorizations for team members to communicate internally and externally about the problem. While your company is recovering from a data breach, being on the same page with your employees is critical.

Lastly, notify your clients. The best course of action is to give them a heads-up so that they can take steps to safeguard their identities, such as canceling credit cards and changing bank account numbers. This may be inconvenient for them, but it’s preferable compared to being caught off guard by identity theft, and to maintain or even regain consumer confidence. Because at the end of the day, even if you’re able to contain the cyber-attack, if your company reputation is ruined, you won’t be able to do business for much longer.

You should also consider establishing a separate action hotline dedicated to answering queries from affected individuals.

Recovering Your Data

Remember this: when it comes to dealing with the aftermath of a breach, the most important thing is DON’T panic or think you should improvise!

Refer to your business continuity plan or IT provider playbook and address each step accordingly to fully recover.

Restoring your data and/or business email greatly depends on how you prepared for the security breach. Sometimes, simply wiping or replacing the data storage drives of the affected IT assets and downloading any lost data from a backup may be sufficient.

In some cases, you may be able to activate full cloud-based replicas or backups of your network environment to quickly restore your company’s network while you investigate the security incident.

When restoring assets, track and catalog which ones have been removed and which ones have to be on your network based on your most recent asset identification efforts. This way, you can be confident you haven’t missed anything.

Something else to remember: your data is only as good and secure as the last time it was tested or backed up. At minimum, you should have a yearly routine in place to test your backups if you need to use them.

Getting Breached Even with an IT Provider?

When you have a solid team of IT professionals, it’s easy to assume that your business will not fall victim to any kind of cyberattack. But unfortunately, foolproof cybersecurity techniques don’t exist. Cybercriminals will always find a way to invent a strategy against improper cybersecurity hygiene and defenses.

While a data breach can put your company out of business, having an effective response plan may be the difference between sinking or swimming. A recovery plan that prioritizes mission-critical data, minimizes downtime, and protects your most sensitive data should be part of your cybersecurity strategy.

For your peace of mind during and after the breach, you should also ask your IT provider the following questions:

During the Breach

  • Was any customer data lost or compromised?
  • What data was compromised?
  • Is the data breach still happening?
  • Have you established a defensible path?
  • Was the data breach malicious or accidental? Who is responsible for it?

After the Breach

  • What about encryption?
  • Have you implemented a crisis communication strategy?
  • Have you notified your outside counsel?
  • Have you put your data breach response strategy to the test?
  • Can future data breaches be prevented? How?

If you ask your IT provider these questions and they can’t immediately answer them or need a long time to draft up what their plan would be, perhaps it’s best to rethink your business relationship.

How can I Prevent Future Breaches?

Sometimes, it’s the small things that matter. Stay ahead of hackers by taking proactive steps to secure your data. Here are some strategies to help protect your business from being victimized by cybercriminals:

  • Make sure all employees know their email security tips. If they open files or click links in emails from senders they don’t know, they must notify their IT department immediately so that the professionals can ensure malware hasn’t been triggered and released.
  • In response to an email or phone contact, do not reveal usernames, passwords, birth dates, social security numbers, financial data, or other sensitive information.
  • Implement a strict Password Policy; use different passwords for different accounts, and mandate password changes on a routine basis.

Be Proactive, Not Reactive

It might be cliché, but the truth is that prevention will always be better than cure. As technology continues to evolve, so will the techniques used by hackers and cybercriminals. So be one step ahead of them with a team of trusted IT advisors! Key Word

If you’re unsure of your security’s vulnerabilities, there is no better time than now to request a free cybersecurity audit. Contact Nerds Support, and we’ll review your system for any vulnerabilities, so they can be addressed to help reduce the risk of cyber-attacks.

A toothbrush brushing the unhealthy cyber hygiene practices off a business' technology security.

Your Guide to Practicing Proper Cyber Security Hygiene

Cyber Security has become an increasingly alarming topic over recent years.

Whether it be due to an increase in business vulnerabilities while adjusting to the remote work landscape in the past few years, or countries like Russia enacting cyber-attacks on some of the biggest companies in the world.

Business owners of today need to accept the growing, but unfortunate, truth: it’s not a matter of IF your business will fall prey to cyber-security disasters, but WHEN it will occur. The best thing you can do is prepare for the worst and have the right knowledge and processes in place to deal with these threats before, during and after they appear.

We want to arm our readers with this information to set them up for success in the long run, so here are 3 important cyber-security topics for your own education!

The Rise of Phishing Scams

In 2020, 75% of business all over the world experienced a cyber scam. Phishing continues to be among the largest risks to your service’s health and wellness since it’s the primary approach for all sorts of data breaches.

A single “successful” phishing e-mail can cause a firm to catch ransomware and then deal with expensive interruptions. Additionally, it can lead a customer to unwittingly turn over login information for a business e-mail account that the cyber-criminal will utilize to send out targeted strikes to clients.

Phishing makes use of humans making mistakes, and also some phishing e-mails utilize innovative strategies to trick the recipient right into disclosing info or contaminating an online system with malware. Just this past year, mobile phishing hazards escalated by over 160%.

To correctly educate your staff members and also guarantee your IT protections are being updated to overcome the latest dangers, you should recognize what brand-new phishing risks are becoming commonplace. These are several of the most recent phishing fads that are important to look out for.

Company Email Theft is Increasing

Ransomware has actually been an expanding danger over the last couple of years mainly due to the fact that it’s been profitable for the criminal teams that execute cyber-scams. An emerging kind of strike is starting to be rather financially rewarding, and therefore expanding.

The success rate of company e-mail theft is increasing and is also being manipulated by assaulters to generate income off items like present card rip-offs and also phony cable transfer demands.

What makes this method so harmful (and also financially rewarding) is that when a criminal gets hold of a company e-mail account, they can send out really persuading phishing messages to staff members, clients, and also suppliers of that business. The receivers might right away believe the acquainted e-mail address, making these e-mails powerful tools for hackers.

Local Business are Under Attack with Spear Phishing

To a cyber-criminal, no business (no matter the size) is exempt from being targeted. Small companies are targeted often in attacks since they have a tendency to have much less IT protections than bigger businesses.

43% of all information theft target SMB’s, with 40% of targeted small companies undergo at minimum 8 hours’ worth of interruptions.

Spear phishing is an extra hazardous type of phishing since it’s targeted and not broad in execution.

Spear-phishing used to be utilized for bigger business due to the fact that it takes even more time to establish a targeted and customized strike. Nonetheless, as big hacker teams make their assaults extra reliable, they have the ability to quickly target anybody without a cyber-liability insurance plan in place.

The outcome is small companies falling victim to greater customized phishing strikes that are harder for their customers to recognize as a rip-off.

Company Imitation is Becoming Very Common

As people become more accustomed with being cautious of e-mails from unidentified individuals, cyber-criminals have actually significantly made use of company imitation, which is also known as social engineering. This is where a phishing e-mail will be received while resembling a reputable e-mail from a business that a customer knows or might be familiar with.

Amazon is a typical target of company imitation, however it occurs as well with smaller sized firms. For instance, there have actually been circumstances where online hosting business have their list of customers breached. And then, posing as those firms, the hackers send out e-mails asking the customers for access to an account to repair an immediate issue, which then leads to the login information being compromised.

Business owners and their employees need to be cautious of ALL e-mails coming from outside their organization, not simply those from unidentified senders, especially those requesting sensitive information.

Leading 4 Cybersecurity Errors that Put Your Information in Danger

The worldwide harm of cyber-attacks has actually risen to approximately $11 million USD every 60 seconds, which equals about $190,000 every second. 60% of little as well as medium-sized business that fall victim to cybercrime wind up shutting down within half a year due to the fact that they’re unable to pay for the expenses.

You might believe that this suggests spending a lot more in cyber-defense, and it holds true that you should have suitable IT safety protections implemented. Nevertheless, a lot of the most harmful attacks result from everyday cyber blunders.

Last year, Sophos took a look at countless worldwide cyber-attacks, and in its report discovered that what it labelled as “common dangers” were usually the most harmful.

Is your business making unsafe cybersecurity errors that are making you vulnerable to a cyber-attack or social engineering scam? Below are various typical mistakes when it pertains to fundamental IT safety techniques that could aid in your long-term business continuity planning.

Not Executing Multi-Factor Verification

Stealing credentials has turned out to be the leading reason for cyber-attacks. With the majority of business procedures and also information being stored on the cloud, obtaining login information is vital to several kinds of strikes on business systems.

Not safeguarding individual logins with multi-factor authentication (MFA) is a huge, yet typical, blunder. It can leave a firm in much greater danger of succumbing to a cyber-attack, with MFA decreasing deceptive login efforts by an astonishing 99.9%.

Believing You’re Okay with Just Anti-virus Software

Even if you’re just a small company, a basic anti-virus software can not maintain your data’s security. As a matter of fact, most methods of hacking nowadays don’t utilize harmful documents in any way.

Phishing e-mails usually carry instructions that aren’t flagged as an infection or ransomware by most common PC’s. Rather, nowadays phishing attempts utilize web links to direct people to harmful websites. Those web links will not be as easily discovered by anti-virus software.

You should take a multifaceted approach that consists of points like:

  • Modern firewall & anti-ransomware software.
  • Email security & DNS cleaning systems.
  • Real-time software and also cloud safety procedures.

Not Utilizing Device Supervision Policies

A bulk of firms all over the world have actually had staff members operating away from the office residence because of the pandemic, and it’s becoming a new normal. Nonetheless, supervising those remote workers’ devices for company use wasn’t previously established.

If you’re not handling protection or information accessibility properly in your organization, the threat of you being attacked increases. If you do not have one currently, it’s time to implement a device supervision strategy, or partner with a Managed IT Services Provider (MSP) that can do it for you.

Not Properly Educating Your Team

An unbelievable 95% of cyber-attacks are triggered by simple mistakes, which make sense given countless firms do not put in the time to continuously educate their workers.

You must routinely train your team about maintaining good cybersecurity hygiene, not simply yearly or when they join your team. If you make IT protections a priority, the safer your business can operate without worrying about falling victim to social engineering or losing data.

These are various methods to incorporate cybersecurity exercises into your business routine:

  • Brief education scenario clips.
  • IT safety posters around your office.
  • Webinars & Group drill sessions.
  • Surprise test emails (but also make it fun!)

Even with our own clients, Nerds Support regularly runs cyber-security test emails for our users to see how well and educated they are in spotting cyber-scam attempts.

How to Not Jeopardize Your Business Device

As an employee, whether you’re operating within your job space or at home, you can become numb to the fact that you’re indeed functioning on a business device all the time.

This can gradually lead to conducting private matters on this device. Initially, it may simply be going over one’s own e-mail while on a lunch break. Yet as that line starts to become blurred, it can wind up with an employee utilizing their business device equally for fun, private activities as much as for their job. And if your device doesn’t have some kind of cloud security & compliance platform installed, that could spell even more trouble.

In a study of almost 1,000 workers, it was reported that just 30% stated they’ve never utilized their business computer for their own matters. The remaining 70% confessed to utilizing their business PC for numerous individual activities.

Several of the non-work-related points that individuals do on a job computer system consist of:

  • Reviewing as well as delivering through their private e-mail.
  • Reading online articles & blogs.
  • Visiting online stores & banking apps.
  • Perusing social media websites.
  • Listening to songs.
  • Watching videos or movies online.

It’s not a good concept to blend your professional with your private matters, despite it being significantly more opportune to utilize your business computer for individual reasons throughout the day. You may wind up being punished, unknowingly invoke a social engineering scam, or even perhaps being let go completely.

Do NOT Store Your Sensitive Passwords on Your Web Browser

Lots of remote work users handle their passwords by permitting their web browser to retain and automatically fill them in for future use. This may sound useful, however it’s not extremely safe should you have your access to that device removed in the future.

When the device you work on isn’t your own, it may be removed from you at any time for a variety of factors, such as to receive necessary updates or repairs, or due to suddenly being let go.

If another person then gains access to that computer, and you never signed off from the web browser, they can proceed to utilize your passwords to admit into your online accounts.

Not to mention, many devices are not simply ruined or kept in a storage room someplace. Many businesses will contribute them to other earnest reasons, which might place your credentials in the possession of a complete stranger if the device wasn’t effectively cleaned.

Do NOT Save Any Private Information

It’s very simple to enter the practice of keeping private information on your business device, particularly if your device at home doesn’t have a great deal of memory. However, this is a bad precedent to fall into, and also leaves you vulnerable to a number of significant troubles:

  • Losing your personal documents and credentials: If you have your accessibility to the device removed, your data can be misplace for life.
  • Your private data becoming accessible to your job (or worse): Several firms have stored memory of staff computers to safeguard from cyber breaches. So, those vacation pictures kept on your business computer that you prefer to not have anybody else access, could be easily accessed by anyone in your company due to the fact that they’re saved in the backup procedure.

When Was Your Previous Cyber-Security Examination?

So how secure is the device you use to work from home? And is your company properly prepared to deal with Phishing Attacks?

Whether you’re concerned with triggering a cyber-attack or are just a local company owner with several remote staff members to protect, practicing proper cyber defense hygiene and partnering with an MSP to secure your data is essential.

Overall, it is necessary to make use of a multifaceted plan when it concerns protecting your company’s health and reputation from even the most significant threats.

Don’t become another statistic or remain naive in regards to your IT safety susceptibilities! Contact Nerds Support today to request a cybersecurity audit, and we’ll examine your system for any weaknesses, so they can be strengthened to minimize the danger to cyber threats!

A business man works on his remote device secured by his Managed Security Services Provider.

What are the Differences Between an MSP & MSSP?

The world & businesses are now more dependent on modern technology than ever. From logistics and supply chain, bookkeeping, or managing finances-almost everything now has an online alternative that requires cyber security. So, companies should have a dedicated IT team or Managed IT Services Provider to ensure smooth transactions between the business and the customers.

But, not all companies can afford a dedicated IT department. Small and medium businesses opt for outsourcing the services they need because it is more cost-efficient. Also, other sectors such as finance and healthcare choose to hire outside parties to leave their IT needs to the experts.

It is essential to note that the interaction between the company and users is not the only priority, but also protecting your business’s data from risks and threats. Having MSP or MSSP partner with your company will deliver positive impacts to your business.

But what are the differences between the two, and how can you determine which kind of services would best suit your business?

What is an MSP and MSSP?

MSP stands for Managed Service Provider, and MSSP stands for Managed Security Service Provider. These two are third-party professional services that can provide technical support from a remote location.

Companies must manage their cybersecurity, both internally and externally, through professional help. Whether your business needs an IT co-management staff, a relatively cheaper way to have an IT team, or the expertise to manage your company’s IT system, you can get support from an MSP or MSSP, depending on your needs.

Managed Service Provider (MSP)

You should consider partnering with an MSP if you encounter a problem with your business’ technology. They can provide the service to fit your needs, either from remote support or a software-as-a-service (SaaS) option. The importance of having a reputable MSP is that you have the right people that can manage, safeguard, and maintain your company’s overall IT needs.

The services an MSP can provide ranges from:

  • Application Management
  • Backup Management and Security
  • Business VoIP Phone Services
  • Cloud Services Management
  • Data Loss Prevention
  • Database Management
  • IT Administration

Managed Security Service Provider (MSSP)

MSSP’s can provide the best cybersecurity for your data needs. It gives your company’s data a knowledgeable team that can defend and protect against data breaches, leaks, malware and ransomware.

Protection and encryption are adjustable for additional security. It will help secure your business, not only from outside eyes, but also from internal data access by employees. A trusted MSSP also complies with security and privacy compliance, regulations, and laws, such as SOC 2, HIPAA, ISO, and PCI DSS.

An MSSP can offer services such as:

  • Anti-virus
  • Data Loss Prevention
  • Incident Management and Response
  • Network monitoring
  • Regulatory Compliance
  • Risk Assessments
  • VPN Management

The Difference between an MSP and MSSP

At first glance, you can identify the difference between the two – the extra word Security in MSSP. Hence, the general difference between them is that the MSSP focuses on security, while MSP is more on the IT administration of the client.

MSP’s have a Network Operation Center (NOC) that delivers network support for its clients. The goal of this service is to meet the IT needs of the company. Some of these are:

  •  24/7 Network Optimization
  •  Hardware and Software Management
  •  Overall Data Management Support
  •  Technical support to company’s staff

Then, the counterpart of that with Managed Security Service Providers is what we call Security Operation Center (SOC). Its main function is to prevent problems caused by uncontrolled factors, such as, but not limited to:

  • 24/7 Network Security
  • Analysis and Monitoring of System and Security Logs
  • Detection of Risks and Threats
  • Study Past Attacks To Prevent in Future

So if you can see, the features of one another have similarities and differences, but they are both helpful to your company. Some companies choose one over the other due to priorities or budget constraints, but many choose to get MSP services and pair it up with an MSSP with a specific set of support services to get the benefits of both systems.

The Bottom Line

For better data and customer management, MSP and MSSP are essential for your business.

You need to evaluate your needs and priorities, as the consequences of not having either MSP or MSSP are more dire and costly, and accidents or attacks can devastate your business’s data and technology.

It is a little bit confusing to think of the differences, as they’re not entirely interchangeable. Companies should be aware of what services they need to prioritize and have in place. The main difference between the two is that MSP focuses on internal management, such as IT performance, data usability, and administration, while MSSP focuses on external threats as it protects you by giving you optimal safety and security. It is not in competition with one another, so if your company needs both of them, you can get both of the services to get the best IT management for your company.

For example, it is possible for one single IT company to function as both an MSSP as well as an MSSP like Nerds Support. If you need help deciding what kind of solution provider it right for you, we can offer you a free IT Consultation where we examine your needs in-depth and give insight as to what could be best for your business moving forward.

Business man looking over his company's cyber insurance policy.

Why Having a Reputable MSP and Cyber Liability Insurance is Important

Data breaches and cybersecurity attacks are becoming more frequent and more costly, especially as more businesses are making the shift to remote digital platforms. From small & medium-sized businesses to multinational conglomerates, all it takes is a single vulnerability to lose critical customer and business data.

In fact, IBM reports that the average cost for a data breach has risen to $4.24 million. This makes cyber liability insurance an important investment because it’s more than just the chance to improve your business’ cyber defense from your end, it’s about protecting your team and your customers.

Here is all you need to know about the importance of having cyber liability insurance & an effective security strategy.

The Basics of Cyber Liability Insurance

As financial advisers often say, if it matters to you, then you should insure it. The same with real estate or even health, cyber liability insurance protects your company in the event of a cyber-attack or unexpected disaster. This helps your business mitigate risks and the costs associated with data breaches and data loss events.

Generally, cyber liability insurance plans will cover a business’ losses stemming from viruses infecting their systems, data breaches, hacking and other forms of illegal access to your data, such as Distributed Denial of Service (DDoS) attacks. From the costs associated with investigation, fines and penalties, and even legal fees from ensuing lawsuits–you can spare your business the financial nightmare with an insurance plan in place. In exchange, the business only pays an agreed-upon premium, whether annually or quarterly.

A Harrowing Question

Consider this scenario: you’re a business who has just fallen victim to a data breach. This could unfortunately be the result of a disgruntled employee or someone accidentally clicking a bad link in an email.

Who do you call?

You should call your cyber insurance provider, as the breach came from within your business. Alongside them, you should also call your Managed IT Services provider (MSP), as they will play a huge role in recovering your data.

It’s important that your business doesn’t just have a strong IT infrastructure, but a thorough cyber insurance policy, as well.

Why Should I Apply?

Contrary to misconceptions, cyber liability insurance is not reserved for companies dealing with tech or communications. As the world adapts to the new normal after the pandemic, more businesses are making the shift to remote work. Regardless of the industry, if you’re using the cloud and the internet to conduct your business, check out these reasons for having a cyber liability insurance plan in place.

Build your Defenses

Before applying for an insurance plan, an organizational assessment is often conducted. This is when you should contact a knowledgeable MSP; they will review your business processes and the security measures put in place, identifying vulnerabilities in the entire system and helps you correct them to reduce your risks of being attacked.

For example, Slack has become one of the most popular business communications available. While it has its own industry-grade security in place, you can boost your defenses and ensure your company’s compliance with leading industry standards through the use of data loss prevention (DLP) solutions. DLP for Slack adds smarter and faster measures that help prevent accidental data leakages or flag suspicious files from even entering your communication space.

Depending on the provider of your policy, it can even cover the assessment process. Furthermore, a number of cyber liability insurance providers cover the expenses for hiring cybersecurity experts that help you cut your costs and allow you to proactively improve your company’s security. With this advantage in terms of expenses, your organization can now adopt more forward-thinking policies regarding data management and security.

Strengthen Your Vulnerabilities by Working with an MSP

Whether it’s for your company’s internal platform or through SaaS solutions, operating in more than one place means different conditions and different standards. Unfortunately, this also means more opportunities for vulnerabilities to exist. Aside from your organizational security measures, remember that your employees working elsewhere are also exposed to cybersecurity risks of their own. Some of them can even pose risks for your company, from phishing schemes to unencrypted file sharing.

By applying for cyber liability insurance, you can ensure that your company can still expect some form of protection and support from cybersecurity problems stemming from other locations. This is especially important for companies that are hiring remote globally.

You can have your headquarters updated with the latest security measures but your operations and employees from other locations are not as safe, and they might be the access point for attackers and malicious programs to enter your own information highway.

Ensure Your Company’s Survival

In the rapidly-evolving entrepreneurial landscape, innovation is crucial for a business’s survival. Now that most businesses utilize online tools one way or another, the importance of protecting their assets in cyberspace with the right MSP/MSSP is more important than ever. It is important to remember that not all companies can survive a cybersecurity issue. A data breach is often followed by regulatory punishments for the business, especially when negligence from their end has been identified.

Business owners also have to brace themselves for lawsuits, which usually come from the owners of the compromised data, whether it’s your employees or your customers. Lastly, being exposed as a vulnerable company erodes the public’s trust in your organization, which affects its ability to turn a profit and could even threaten the very survival of the business.

This is also the main selling point of cyber liability insurance plans and IT for insurance, especially since not all companies have the material and skills resources required to bounce back from a data breach or loss incident. In exchange for a regular premium, you can rest assured that you can immediately respond and recover should an unfortunate event occur in your company.

It’s Time for Peace of Mind

A cyber liability insurance plan protects you, your employees, and your customers from the increasingly common threat of cybersecurity attacks. From data loss incidents caused by systems themselves to data breaches initiated by unlawful elements, you can rest assured that you have the resources to ensure your survival and recovery in the event these incidents happen to your company. Furthermore, it gives your company an opportunity to prepare and upgrade its capabilities in preventing and handling these kinds of situations.

If you’re a business owner looking to gain peace of mind, Contact Us today for a Free IT Evaluation. We can give you reliable advice on cyber insurance and build your business up to its maximum potential!