Developing Cybersecurity Framework for the Financial Industry

Cybersecurity threats are escalating, leaving no organization immune, especially in the financial services sector. With sensitive customer data at stake, a breach can have catastrophic consequences.

Take the case of LoanDepot. In January 2024, this mortgage lender suffered a ransomware attack that compromised the personal information of 17 million customers. The stolen social security numbers and other sensitive information highlight how vulnerable even established financial institutions can be.

This raises a pressing question: How can financial organizations avoid becoming the next headline? A well-crafted cybersecurity framework becomes a necessity.

What does it take to build one? Let’s explore the steps and proven practices to help your business stay protected and resilient.

What is a Cybersecurity Framework?

A cybersecurity framework is a collection of guidelines and best practices designed to help organizations strengthen security measures and meet regulatory standards.

While these frameworks aren’t usually mandatory since they’re not formal laws, they often align with specific regulations. Governments or regulatory bodies may strongly recommend following certain frameworks because they closely reflect the security requirements in those regulations.

Top Cybersecurity Frameworks for Financial Institutions

Now, which framework is right for your financial services company? Here are the top ones:

1. NIST Cybersecurity Framework (NIST CSF)
2. Center for Internet Security (CIS) Critical Security Controls
3. Cybersecurity Capability Maturity Model (C2M2)
4. Federal Financial Institutions Examination Council (FFIEC) Cybersecurity Assessment Tool (CAT)
5. The Open Web Application Security Project (OWASP)
6. ISO 27001/27002
7. Information Technology Infrastructure Library (ITIL)
8. Cloud Security Alliance (CSA) Security, Trust & Assurance Registry (STAR)
9. NIST Special Publication 800-53
10. Sarbanes-Oxley (SOX)
11. FTC Safeguards Rule

Steps to Build a Strong Cybersecurity Framework for Financial Services

Building a strong cybersecurity framework involves understanding requirements, assessing risks, continuous monitoring, and more. It requires a thoughtful and systematic approach. 

As Ginni Rometty, former IBM CEO, aptly said, “Cybercrime is the greatest threat to every company in the world.” This threat intensifies for financial institutions, where the responsibility to safeguard sensitive data is non-negotiable. 

Here are seven steps followed by actionable ways to implement a cybersecurity framework effectively.

1. Understand the Requirements

Regulatory demands and business-specific risks heavily influence cybersecurity in financial services. Knowing what’s required ensures your framework is both compliant and effective. 

Regulatory standards like PCI DSS, GDPR, and GLBA mandate specific controls to safeguard sensitive customer data. Without this foundation, any security framework may fall short of compliance or leave critical vulnerabilities.

Here’s what you need to do:

• Determine which standards (e.g., PCI DSS, GDPR, GLBA) apply to your business based on your industry, location, and operations.
• Assess risks specific to your financial services, such as customer data breaches or transaction fraud, to align security efforts.
• Consult regulatory or cybersecurity specialists to interpret complex requirements and avoid missteps.
• Analyze past internal or external audit findings to identify recurring vulnerabilities.

2. Choose the Right Cybersecurity Framework

Not all frameworks are created equal. Choosing the right one depends on your organization’s goals, size, and resources. 

For example, the NIST Cybersecurity Framework is popular for its flexibility, while ISO 27001 offers comprehensive international standards. Selecting the right one ensures your framework aligns with operational and regulatory needs.

Here’s what you need to do:

• Compare the frameworks mentioned above, such as NIST, ISO 27001, or CSA STAR, to identify which best suits your business.
• See that the framework you choose addresses key regulatory requirements.
• Seek advice from cybersecurity specialists to refine your choice.

3. Assess Risks and Inventory of Assets

Understanding where your vulnerabilities lie is key to building a targeted security strategy. Risk assessments reveal the most critical threats, while inventories of assets help prioritize protection. 

Some examples of inventorying assets include physical assets like devices, digital assets like customer data, intellectual property, and more.

Here’s what you need to do:

• Conduct a risk assessment: Use tools or third-party services, such as vulnerability scanning platforms or penetration testing providers, to identify potential threats and vulnerabilities.
• Map assets: Create a detailed IT infrastructure inventory, data repositories, and critical business processes.
• Prioritize assets: Rank assets based on importance and the potential impact of a breach.
• Use risk scoring: Assign scores to each vulnerability to focus resources on high-risk areas first.

4. Define Security Policies and Procedures

Policies and procedures are the operational backbone of your cybersecurity framework. Without them, even the best tools can be ineffective. 

Policies should cover access controls, data encryption, incident response, and employee training.

Procedures are actionable steps that guide employees in implementing the policies. These are specific, operational instructions tailored to various scenarios like:

• Access Control: Steps to grant, revoke, or review user permissions.
• Data Encryption: Detailed processes for encrypting sensitive data at rest and in transit.
• Patch Management: How to apply software updates and security patches to systems.

Here’s what you need to do:

• Develop clear policies: Write guidelines for data access, password protocols, and acceptable use of systems.
• Establish incident response procedures: Define steps for identifying, mitigating, and reporting security breaches.
• Incorporate employee training: Include regular cybersecurity awareness programs for all staff.
• Document policies: Ensure critical documents have only the necessary access and review them regularly for updates.

5. Execute Your Plan and Continuously Reassess

Implementation is where theory meets practice. A phased approach ensures smoother execution and reduces risks like unintentional downtime. 

Once implemented, reassessment is critical to adapt to new threats or compliance updates.

Here’s what you need to do:

• Start small: Implement policies and controls for the most critical areas identified earlier.
• Test systems: Run simulations or penetration tests to ensure new measures work as intended.
• Monitor regularly: Use security tools to track system performance and detect anomalies.
• Update regularly: Adjust your framework based on new regulations or emerging threats.

6. Leverage Third-Party Expertise

Cybersecurity demands both expertise and resources. For many organizations, partnering with specialists, such as Managed Security Service Providers (MSSPs), can provide the expertise needed to stay ahead of threats.

Atlas Systems, for example, provides support to keep your systems secure and compliant by actively monitoring and managing configuration changes across your IT infrastructure. With Atlas Systems, you can minimize risks and ensure your systems operate securely and efficiently.

When it comes to cybersecurity, having experts on your side is always a safer bet than leaving it to chance.

Build a Robust Cybersecurity Framework With Atlas Systems

Cyber threats are no longer a distant possibility; they’re an ongoing challenge, particularly for businesses in the financial sector. 

With sensitive data and regulatory pressures at stake, many organizations struggle to balance robust security measures with operational efficiency. 

This is where a comprehensive cyber resilience framework becomes invaluable. 

Atlas Systems specializes in providing holistic cybersecurity solutions tailored to financial services companies. Through managed services, risk assessment, and risk mitigation strategies, Atlas Systems helps you minimize disruptions, protect your reputation, and secure critical data. 

With 20+ years of experience, over 100 global clients, and more than 100,000 assessments completed, businesses trust Atlas to strengthen their security posture.

As Stephane Nappo said, “It takes 20 years to build a reputation and a few minutes of cyber incidents to ruin it.” 

Don’t leave your cybersecurity to chance. 

Contact Atlas Systems today for a personalized consultation and discover how to build a framework that protects your assets and drives your success.