A data breach exposing your investor relations software can have devastating consequences.
Depending on the severity of the breach, it can leave a permanent dent in your reputation. As faith in your brand plummets, so will your stocks. And if you’re found at fault for not having adequate security in place, you could face legal consequences and hefty settlements just as your value drives down.
All in, data breaches aren’t something you want to experience. It’s worth the time, effort, and budget to invest in better security for all your investor relations tools. Keep scrolling to learn about the latest investor relations software security tips.
When it comes to your IR website, encrypting all data at rest (disk, volumes, database backups, etc.) and traffic in transit is mandatory. This security method scrambles confidential information going to and from your servers so that it is incomprehensible to any unauthorized people trying to snoop.
Encryption is also important for cloud-based CRM desktop tools, as investor data will end up on your networked computer system. If your IR CRM relies on third-party data farms, this service provider should rely on industry-standard security safeguarding its servers and infrastructure.
SOC-2 Type 2 Certification
One of the best ways of knowing your IR tools have adequate encryption is through the SOC-2 Type 2 Certification. Short for System and Organization Control 2 — and better known as “sock two” — SOC-2 Type 2 Certification is an accreditation that proves your investor relations software provider follows international security best practices.
The SOC-2 Type 2 certificate compares data handling to its five trust service principles, including security availability, processing integrity, confidentiality, and privacy. Only those investor relations software providers that meet high standards can earn this accreditation.
ISO 27000 Certification
Another important security accreditation is the International Organization of Standards (ISO) information security management standard. The ISO 27000 represents a family of security standards that make up global best practices for security management.
Like the SOC-2 certification, the ISO 27000 is only available to those companies that design its privacy laws and security protocols that match these industry standards.
Audits and Testing
In addition to third-party auditing, your IR tools provider must complete its own set of audits and penetration tests on a regular basis. Internal audits help your provider assess, monitor, and review its IR tools, patching bugs and improving its design where appropriate.
A penetration test, or a simulated cyberattack, reveals how IR tools withstand application- and infrastructure-level attacks under a controlled setting. Failing this test is an opportunity to repair vulnerabilities before a hacker can exploit them.
Your investor relations platform paints a huge target on your company, as it’s a goldmine of customer and proprietary data. In today’s climate, there’s no way you can avoid a cyberattack, but you can reduce the chances these attacks result in a genuine data breach. Choose your investor relations software carefully with these security protocols in mind.
One last thing to keep in mind when shopping around for software. You’ll want to look for a provider who understands that cybersecurity is constantly evolving, so their protocols should be under constant review.