4 Key Lessons Startups Can Learn from Mature Banking Corporations in Building a Strong Cybersecurity Posture
Cybersecurity is a top priority for businesses of all sizes, but startups can sometimes overlook its importance as they focus on growth and innovation. However, with the increasing number of cyber threats, it’s essential for startups to prioritize cybersecurity to avoid financial loss, damage to reputation, and loss of sensitive data. To help startups build a strong and effective cybersecurity posture, here are four key lessons they can learn from mature banking corporations.
My writing is based on my experiences working in two different types of companies: corporate banking (local and international) and a large-sized startup. There are many possible views from different aspects by other tech workers based on their respective experiences.
Senior management must understand the importance of cybersecurity
In order to effectively integrate cybersecurity into the overall risk management strategy of a company, it is important to make the case for investment in this area to senior management. One way to do this is through a return on investment (ROI) analysis. This involves calculating the cost of a potential security breach and comparing it to the cost of implementing and maintaining robust cybersecurity measures.
For example, the cost of a security breach can include:
- Loss of sensitive data, such as customer information or financial data
- Loss of revenue due to business disruption or reduced customer trust
- Additional cost for legal/regulatory violation punishment
- Damage to reputation and brand image
- Cost of recovery and remediation efforts
On the other hand, the cost of implementing and maintaining cybersecurity measures can include:
- Cost of software and hardware, such as firewalls, intrusion detection systems, encryption or even data leak prevention.
- Cost of employee training and awareness programs
- Cost of regular software updates and maintenance
By comparing these two sets of costs, the ROI analysis can demonstrate the financial benefits of investing in cybersecurity. This can help to make the case for senior management to allocate the necessary resources to build a strong cybersecurity posture.
It is also important to educate senior management about those risks above of a security breach and the potential consequences for the company. This can include loss of sensitive data, financial loss, damage to reputation, loss of customer trust and many more. By raising awareness of these risks, senior management can understand the importance of making cybersecurity a priority for the company.
Automation can be a cost-effective way to improve cybersecurity.
Mature banking corporations often use automation to streamline processes and reduce the risk of human error, helping to keep costs low while improving their overall security posture. Startups can benefit from using similar automation techniques, such as using firewalls, encryption, and multi-factor authentication, to enhance their security and minimize their risk.
Identifying critical assets is a crucial step in building a strong cybersecurity posture. Mature banking corporations have a comprehensive understanding of which assets need to be protected and prioritize their investment accordingly. This practice can also following NIST framework to protect the organization in initial phase. Startups can follow their lead by identifying the assets that are most critical to their business and focusing their cybersecurity efforts accordingly.
Government regulations can help startups improve their cybersecurity posture.
Regulations such as GDPR and Data Protection Law set minimum standards for data protection and can serve as a helpful guide for startups as they work to improve their security practices. By understanding and complying with these regulations, startups can help ensure they are taking the necessary steps to protect sensitive data and reduce their risk of being impacted by a cyber attack.
Cybersecurity is about people, process, and technology
Mature banking corporations understand that cybersecurity is not just about the tools they use, but also the people and processes they have in place. To be effective, cybersecurity must be integrated into the overall business strategy and supported by well-informed and trained employees. By investing in regular cybersecurity training for employees, startups can help mitigate the risk of human error, which is often the cause of many security breaches.
Banking corporations often have well-defined and documented security procedures in place, such as incident response plans and data backup and recovery processes. Having these processes in place helps to ensure that in the event of a security breach, the company is prepared and can respond in a timely and effective manner. For instance, regular software updates and backups can only be effective if they are integrated into the company’s overall disaster recovery and business continuity plans. This integration helps to ensure that in the event of a cyber attack, the company is able to quickly recover and resume normal operations with minimal disruption.
Well, in the end, technology, people and process must work together for a company to have a comprehensive cybersecurity program.
It’s important for startups to prioritize cybersecurity and learn from the practices of mature banking corporations. By adopting a comprehensive approach that involves people, process, technology, and regulatory compliance, startups can build a strong and effective cybersecurity posture and reduce the risks they face. Additionally, it’s important for startups to understand that no company is immune to cyber threats, and they should also adapt their cybersecurity strategies to fit their specific needs and circumstances. By balancing lessons from mature organizations with an understanding of their own unique needs, startups can build effective and efficient cybersecurity programs.
