Is Your Firm Ready for an Audit or Insurance Renewal?
Financial services firms in Denver face increasing scrutiny from regulators, auditors, and cyber insurance carriers. SEC cybersecurity disclosure rules, cyber insurance requirements, and auditor expectations are raising the bar for firms that handle client financial data.
We put together this 10-point checklist based on what auditors and carriers are actually asking for. Most firms we work with check 6 or 7 out of 10. The gaps are usually invisible until someone asks.
The 10-Point IT Security Checklist
1. Multi-Factor Authentication (MFA) on All Client-Facing Systems
Client portals, email, VPN, and remote access must require MFA. Cyber insurance carriers have delayed or denied claims when MFA was not enabled on compromised systems.
2. Encrypted Email for Client Communications
Client financial data sent via email must be encrypted in transit and at rest. Standard email does not meet this requirement without additional configuration.
3. Endpoint Detection and Response (EDR) on All Workstations and Servers
Traditional antivirus is no longer sufficient. Insurance carriers and auditors expect EDR tools that detect, isolate, and respond to threats in real time.
4. Documented Incident Response Plan
If a breach occurs, your firm needs a written plan that covers containment, notification, evidence preservation, and recovery. Without one, insurance claims may be delayed, challenged, or denied.
5. Tested Backup and Disaster Recovery
Backups must be encrypted, stored offsite, and tested regularly. “We have backups” is not enough. Auditors ask for documented recovery tests proving your data is actually recoverable.
6. Access Controls and Least Privilege
Staff should only have access to the data they need for their role. Former employees, contractors, and shared accounts should be audited and removed promptly.
7. Security Awareness Training
Phishing is the number one attack vector for financial firms. Regular training and simulated phishing tests reduce risk and satisfy insurance and compliance requirements.
8. Vendor and Third-Party Risk Management
Your firm’s security is only as strong as your vendors. Cloud providers, payroll processors, and document management platforms should meet minimum security standards.
9. Audit Logging and Monitoring
Systems should log who accessed what data and when. These logs are critical for compliance audits, insurance claims, and breach investigations.
10. Cyber Insurance Documentation
Your cyber insurance policy likely requires specific controls to be in place. If you cannot document compliance with your policy requirements, a claim may not be honored.
How Does Your Firm Score?
If you checked fewer than 8 out of 10, your firm may have gaps that could surface during an audit, insurance renewal, or incident.
Schedule a Free 15-Minute IT Security Review
We’ll walk through the checklist with you and point out any gaps we see. No cost and no obligation.
Call us directly: (720) 388-8564
Or schedule a time that works for you.
Technology Response Team provides cybersecurity and IT support for financial services firms in Denver, Boulder, and across Colorado. We specialize in compliance-grade security for firms handling sensitive client data.
7100 Broadway Unit 5G, Denver, CO 80221