The Regulatory Burden

Regulatory compliance and operational demands differ significantly from one financial firm to the next. But that burden is always onerous — and is changing rapidly.

The Treasury Department wants powers to oversee fintech firms and similar tech service providers. New York’s Department of Financial Services already requires financial firms in that state to assess the cybersecurity of tech service providers. Banks, meanwhile, must monitor, process and protect potentially millions of transactions daily and satisfy compliance objectives ranging from market liquidity to fair lending, cybersecurity, financial crime prevention and more.

The Fed already watches their attention to cybersecurity, the Office of Comptroller of the Currency, state banking regulators (see New York, above) and others. All this means that fintech firms must be able to prove their security and reliability—and their clients must be able to assess those factors, too—so the services fintech offers don’t disrupt other compliance and reporting obligations their financial clients have.

But with the complexities around frameworks and compliance requirements, some help from a GRC management platform—one that incorporates automation—can be the most cost-effective and efficient solution for financial institutions.

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A Framework for Information Security Success

Frameworks can help financial firms address any of these objectives. Still, the firms must simultaneously manage multiple frameworks to achieve progress on various needs, each moving at its own pace. These can include anything from:

  • PCI DSS can empower financial firms to implement strong credit card security controls
  • The NIST Cybersecurity Framework can help banks to implement cybersecurity risk management programs
  • SOC 1 for greater accuracy in financial reporting and to ensure that financial data are protected from data breaches
  • SOC 2 can help an organization ensure that its IT systems and organizational controls are effective

Additionally, financial firms need to track what they’ve already assessed, consider corrective steps that might be necessary, determine whether those fixes are on schedule, know what still needs review and what new assessments might be required as new regulations emerge.

That’s a lot of moving parts. Accuracy and timeliness are essential in the financial sector, and there is little room for error. Thus, financial firms can benefit significantly from financial compliance software that can automate repetitive workflows and ensure all a firm’s obligations are met.

Manage Compliance and Risk with Confidence and Ease

The Reciprocity® ZenGRC® platform provides banks and fintech firms of all sizes a cost-effective, unified system to manage controls across multiple frameworks and help CISOs monitor key performance indicators for compliance and IT security efforts.

ZenGRC is a governance, risk management and compliance solution that provides simple-to-use risk management templates to facilitate risk assessment on a comprehensive level.

Our user-friendly dashboard identifies your compliance gaps and gives you actionable feedback on how to fill them.

ZenGRC empowers financial institutions to streamline operational risk management and compliance by automating the repetitive, time-consuming tasks that typically monopolize your day, so you can focus on growing your business.

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Compliance Objectives

Ultimately, your financial company’s compliance objectives will vary depending on the scope of your business, your clientele and your geographic location. However, financial agencies will be expected to have robust enterprise risk management, cybersecurity and compliance programs.

With ZenGRC, you’ll be empowered to:

  • Assess cybersecurity vulnerabilities within your organization as well as any fintech third parties
  • Comply with privacy rules at international, federal and state levels
  • Map progress on remediation efforts
  • Integrate new regulatory requirements into your compliance systems
  • Identify weaknesses in internal controls and have a framework to fix them

ZenGRC increases audit efficiencies for Beeline while decreasing time, resources, and risk.

As a service organization, Beeline understands the importance of instilling confidence among its customers and their auditors, committed to meeting required reporting requirements.

To support SOC reporting and audit processes, Beeline partners with one of the top independent audit and advisory firms.

With ZenGRC, Beeline met a customer’s financial calendar year deadline that was just two weeks away, resulting in significant charges if the deadline was not met.

The auditing firm and Beeline moved swiftly, using the platform to collect and verify evidence, leaning on daily reminders for specific tasks to expedite reviews and approvals.

ZenGRC beeline case study

Read how Beeline made their audits more efficient

Choose the product that suits you

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Reciprocity ZenComply

Accelerate your compliance programs and see how they impact your risk posture.

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Reciprocity ZenRisk

Gain contextual insight on your risk posture to mitigate business exposure.

Frequently Asked Questions

SOC 2 is a framework that applies to most service providers (often SaaS providers) and their ability to securely manage sensitive data and safeguard the interest of their clients. When SOC2 is required, it results in an independent service auditor’s report and certification of compliance.

NIST is a voluntary framework that can define and improve the security protocols necessary to secure a service provider’s IT systems and enhance information security.

Both standards focus on analyzing an organization’s internal security controls.

It is often a prerequisite for participation with the major payment card brands for your financial transactions. Financial institutions, issuing banks, merchants, and financial service providers that process transactions need contracts with the five card brands that facilitate them.

There are 12 primary requirements to prove PCI compliance:

  1. Protect all cardholder data with a system of well-maintained firewalls.
  2. Change all passwords from any defaults to unique and secure options.
  3. Any stored cardholder data should be protected.
  4. Encrypt any cardholder data that is transmitted via open networks.
  5. Use antivirus software and make sure it is up-to-date.
  6. Make sure that your systems and applications are secure.
  7. Access to cardholder data should be permitted only on a need-to-know basis.
  8. Any staff members with access should be assigned a unique ID.
  9. Any physical access to cardholder data should be restricted.
  10. All access from staff should be closely monitored.
  11. All security measures should be tested regularly.
  12. Your information security policies should be consistent and clear to all employees.

To protect your IT systems and data from unauthorized access or theft, you must first understand what gaps, if any, exist in your security protocols as well as the unique risks facing your organization.

Then, once your risks are identified and assessed, you can leverage insights for better decision-making for risk reduction strategies, including which controls to implement or improve data privacy.

But that’s just a start. From there, your compliance or cybersecurity program will need to be maintained, monitored and reviewed routinely to ensure that internal controls are still adequate to reduce risk and achieve compliance.

A governance, risk and compliance management solution like ZenGRC can provide several options to help you identify, meet and maintain your risk posture, including vulnerability importance and status.

ZenGRC ensures you always know where you stand and what action needs to be taken to address vulnerabilities and improve your risk, compliance and security posture.