Today on the blog, learn about next generation data security for hedge funds.
Due to the sheer volume of information hedge funds can contain at any one time, data is by far their most valuable asset. A large amount of this information is personally identifiable (PII) investor information, and can include social security numbers and financial information such as bank account numbers. To keep assets safe, many hedge funds have employed encryption as a means to achieve data security. In order to access an encrypted file, the user would need to have access a secret key or password that enables them to decrypt it. Up until recently, encryption was the most effective way to keep files secure. However, due to advances in data security methods, hedge funds are beginning to move away from data encryption and to a newer form of data security that allows for the complete control of data. Instead of focusing on locking data files in place and controlling specific actions in regards to data access (for example, within the corporate network), this new form of data security focuses on the control of the data itself.
Traditional forms of data security, such as encryption, only safeguard data that stays within the corporate network. With this method, administrators can set up permissions to control which employees can access certain files. However, if the file leaves the corporate network, it will no longer be under the control of the network administrator. In today’s mobile world, where employees are constantly moving data outside of the corporate network in order to work offline and utilizing cloud based file sharing systems to make life easier, it is imperative for hedge funds to employ a data security method that is flexible yet secure. Many hedge funds are left wondering how they can keep data secure without imposing restrictions that make working from home or traveling inefficient for their employees.
Next generation data security provides a strong defense for hedge funds struggling with this conflict, enabling them to maintain full control over file data no matter its location or how many copies are made. Even if employees take files outside the network, this new method of data security works at the file level, allowing administrators to completely revoke access to files independent of their location. Security policies are set for data itself, and remain in place wherever the data goes. This method also enables administrators to know by who and how the files are accessed so that permissions can be revoked at any time. This ability is especially helpful in preventing employee data breaches, in the case that an employee leaves the hedge fund or is fired.
By moving to a security method that is employed at the file level, hedge funds no longer have to compromise efficiency to achieve data security and control.
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