Dealing With The Rising Burden of Cyber Rules on Financial Services
George Ralph of RFA details why cybersecurity regulations continue to evolve, and shares practical strategies that financial firms can use to stay compliant, reduce risk, and turn compliance into a long-term advantage.
One of the challenges for organisations in sensitive sectors like finance is keeping up with constantly changing cyber rules and the new ones that appear almost every year. A recent study showed that over 50% of CFOs for firms in finance struggle with fast-changing cyber regulations.
Standards like GDPR, PCI DSS, SOX, HIPAA, and GLBA set strict requirements for how companies handle data, report finances, and protect customer information. However, with the right approach, dealing with these evolving laws can be much easier than many people expect it to be.
It requires shifting your mindset from seeing them as restrictions or expenses to viewing them as guidelines that help you serve your customers more safely and effectively.
Today, I want to walk you through some of the strategies we use at RFA to help our clients (mainly financial firms) stay compliant with cybersecurity rules that continue to tighten every year. But first, let me explain why cyber regulations keep changing and why new ones appear all the time.
Why Cyber Regulations Keep Changing
Evolving attacks: Over time, cyber threats targeting financial institutions continue to change. For instance, in the last few years, we have seen a significant rise in zero-click attacks. This evolution of attacks and attack vectors often leads to new laws or changes in existing ones.
Technology evolution: As new technologies like AI, cloud, and APIs emerge, new rules are needed to protect users from the potential negative effects of these technologies.
Global privacy expectations rising: As users become more exposed to the internet and digital tools, their awareness of cybersecurity and privacy issues increases. This raises their expectations of the companies they deal with, so regulators must keep up.
High-profile data breaches: Whenever there is a high-profile data breach, new laws often emerge or existing ones get updated to prevent similar incidents in the future.
Now that we know why regulations are updated or newly created, let me walk you through some tested strategies you can use to help your organisation keep up and avoid non-compliance penalties.
Strategies We Use at RFA to Help Financial Firms Stay Compliant
Reframing compliance: from “cost” to “value”
This is probably the most important starting point that every firm must never ignore. You need to change your mindset (both leaders and teams) to see compliance not as an expense, but as a way to build trust, reduce risk, and protect your brand. This mindset shift makes long-term compliance easier and more effective. Firms that approach compliance this way also often exceed the controls put in place by regulators.
Continuous monitoring and automated reporting
Attacks are always evolving, so continuously monitoring your systems and data is a must. Use SIEM and SOAR tools to watch systems in real time and alert the responsible teams if there is an issue that needs attention. You can also consider using AI agents to monitor changes in major regulations your firm must follow and notify you of any updates that require your attention. These systems can also be configured to automatically generate reports. This helps firms stay ahead of new requirements and reduces the need for manual checks.
Regular security assessments and penetration tests
Financial firms must routinely test systems to find weaknesses before attackers - or regulators - discover them. This helps you understand your risks and fix issues early. You can run both internal and third-party audits and penetration tests to ensure no vulnerabilities are overlooked due to bias or limited experience. Also consider rewarding third parties, such as security firms and independent researchers, who detect vulnerabilities in your systems.
Strong data governance and classification policies
Firms need to understand what data they have, where it is stored, and how sensitive it is. When data is well organised, meeting compliance requirements becomes much easier. Most regulations focus on keeping user data safe from the bad guys, so effective data management helps your firm stay compliant with many of these laws.
Vendor and third-party risk management
In 2024, a study showed that more than 35.5% of data breaches were linked to third-party access such as vendors, suppliers, and partners. To stay ahead of regulations, firms must evaluate all external partners and tools to ensure they meet security standards. Since many breaches come through vendors, this reduces exposure and helps prevent regulatory violations.
Cloud security frameworks and standardised controls
Most firms now store their data and run many of their systems in the cloud. This is why many new regulations focus on safeguarding user data hosted in cloud environments. Firms need to build security controls that match or exceed regulatory expectations on platforms like AWS and Azure. This ensures their cloud environments remain compliant as they scale. The good news is that most major cloud providers offer tools like Microsoft Purview to help make this possible.
Employee training and security awareness programs
A staggering 95% of data breaches involve some form of human error. So, no matter what technology you use, your team’s knowledge and actions still play a major role in maintaining a secure and compliant environment. That’s why firms must train their staff on cyber hygiene and common attack methods. Since many incidents start with human mistakes, this significantly reduces risk and improves compliance.
Key Takeaway
The rules and regulations your firm must follow will always change. However, the core purpose of these laws remains the same: to protect users and their data. That’s what you should always keep in mind when shaping any new strategy.
Your goal is to ensure your users and their data are safe and protected at all times and at every stage. I know this is easier said than done, but with the right strategies and prioritisation, it’s achievable for any firm, and it doesn’t have to cost a fortune.
For firms without the internal capacity to manage this, you can always partner with trusted managed IT and cybersecurity providers like RFA to help you.
Future-Ready IT for Financial Leaders.
RFA delivers advanced cybersecurity and IT solutions tailored to the financial sector's needs. With a focus on white glove service, RFA ensures that their technology supports their clients' complex demands, enhancing security and business operations.
