Cyber Threats: What Fiduciaries Should Know
Cyber security is a growing concern. Is it part of your annual vendor review process?
According to a post on 401khelpcenter.com
, here are some questions that plan fiduciaries (and, arguably, those who advise them) should ask:
- Does the service provider conduct periodic risk assessments to identify cyber security threats, vulnerabilities, and potential business consequences?
- What are the service provider’s processes and systems for dealing with cyber security threats and protection of personally identifiable information?
- Does the service provider have an annual independent assessment made of its cyber security processes?
- Does the service provider have a Chief Information Security Officer or equivalent position?
- Does the company have a privacy and security policy, and does the policy apply to personally identifiable information of retirement plan clients?
- Is the company’s policy clear with respect to storing personally identifiable information on laptops and portable storage devices? What is that policy?
- Is advanced authentication used by the company? Can the service provider explain the process?
- Are technology systems regularly updated?
- Does the service provider have policies on storing personally identifiable information including where it is stored, how long it is stored, and how it is eliminated?
- Are all personnel who come in contact with personally identifiable information trained on adequate protection of the information?
- Does the company carry cyber security insurance? If yes, provide an overview of the coverage.
- Has the company experienced any security breaches? If yes, explain.