ICYMI: How Advisors Can ‘Do Good’ This Season; Making FinServ More Inclusive & Cybersecurity

In case you missed it:

5 Ways Advisors Can Do Good This Holiday Season

The holiday season is the time of year that has everyone asking, “how can I help?” and “what can I do to give back?” For advisors looking to spread a little holiday cheer, getting started can be the most difficult part. Here are five ways advisors can do good this season:

1. Instead of Client Cards or Gifts, Donate in Their Name
2. Host a Donation Drive
3. Volunteer Your Time
4. Pro Bono Work
5. Start a Fundraiser for a Cause

How Can The Financial Services Profession Become More Inclusive?

This week, the CFP Board Center for Financial Planning hosted its 2^nd annual Diversity Summit. The Summit brought representatives of the financial services industry to Washington on Wednesday to discuss the answers to that question. AdvisorNews Managing Editor Cassie Miller attended the event.

Cybersecurity: A High-Stakes Gamble For Firms And Clients

Data breaches happen to companies and organizations all the time. The most recent, a data breach at Capital One, left as many as 100 million customers wondering whether their personal and financial information was compromised.

Data breaches like this one make a serious dent in the credibility and trustworthiness of businesses and firms, even large ones like Capital One. Other financial institutions like J.P. Morgan Chase, Equifax and Scottrade have all been victims of cyberattacks.

So, what can firms in the financial services world do better to protect their businesses and their clients’ personal information? It starts with understanding what’s at stake.

The cost of a data breach has risen 12% globally over the past five years and now costs $3.92 million on average, according to a Security Today study. These rising expenses reflect the multiyear financial impact of breaches, increased regulation and the complex process of resolving criminal attacks.

The financial consequences of a data breach can be particularly severe for small-to-midsize businesses. According to the study, companies with fewer than 500 employees suffered losses of more than $2.5 million on average — a potentially crippling amount for small businesses, which typically earn $50 million or less in annual revenue.

Data breaches in the U.S. are particularly expensive, costing companies an average of $8.9 million in 2019 alone. The U.S. has the highest cost globally for data breaches, according to an IBM-Ponemon Institute study.

The study found that lost business was the biggest contributor to data breach costs, accounting for an average of $1.42 million lost. For a small firm or business, numbers like this can be devastating, resulting in layoffs or even closures.

A Kaspersky Lab survey on data breaches found that 32% of data breaches resulted in layoffs.

Take, for example, medical billing company, American Medical Collection Agency who filed for bankruptcy after a data breach and cut its staff from 113 to just 25 employees. The company said “enormous expenses” were to blame for the company’s bankruptcy.

AdvisorNews Managing Editor Cassie Miller may be reached at cassie.miller@Adnewsfeedback.com. Cassie has an extensive background in magazine writing, editing and design. Follow her on Twitter @ANCassieM.