On Feb. 3, the Securities and Exchange Commission (SEC) and the
Financial Industry Regulatory Authority (FINRA) each released
reports regarding cybersecurity issues for brokerage and advisory
firms, both of which should be considered required reading
for chief information security officers, chief information
officers, legal teams and anyone else responsible for managing
cybersecurity risk.1 These reports highlight
best practices for managing cybersecurity risk and areas for
potential improvement, and should encourage firms to consider
further investments in cybersecurity because, as FINRA specifically
points out, it ''expects firms to consider the principles
and effective practices presented in the report as they develop or
enhance their cybersecurity programs.''2 As a
result, firms should anticipate that elements covered in the
reports will be benchmarks for measuring the effectiveness of a
firm's cybersecurity program in any enforcement action brought
by either the
