Cyber Attacks: What Should Concern Retirement Plan Sponsors. Plan sponsors have traditionally focused upon safeguarding the financial assets of retirement plans. Today, there is a new asset that must be considered a security risk. That asset is the data of the Plan Sponsor and the Plan Participants. Retirement Plan Sponsors are on the front line of Cyber Security so safeguarding plan assets are at the core of what each Retirement Plan Fiduciary or Committee needs to be addressed.
The astute Plan Sponsor will ask of their service providers (recordkeepers, financial advisors, custodians and Third Party Administrators) “What actions are your firm taking to protect our retirement plan and our participant data from a cyber-attack?”
That question is broad-based. Follow up questions of your service providers will be dependent upon your service provider’s initial response.
Plan sponsors which have an IT department in the firm would be well served to solicit the assistance of that department when designing an overall Cyber Security Plan.
Check out the Vlog from 401KTV to learn how your plan data may be vulnerable to a cyber-attack.
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