Managing device security without micromanaging your team

Security
6 mins read

Imagine one of your advisors immediately responding to an urgent client email from their personal smartphone while attending their child’s weekend game. This level of flexibility is a hallmark of modern client service, especially for smaller, agile registered investment advisory (RIA) firms. Yet, this convenience brings up a significant question: how do you protect sensitive client data when it’s accessed on personal devices?

Striking a balance between robust security, regulatory compliance, and employee freedom can feel like a tightrope walk. Fortunately, your firm can achieve this balance with the right strategies, particularly by using mobile device management (MDM) solutions and crafting clear supportive policies. Let’s explore practical steps to help your RIA or financial advisory firm handle these considerations.

The device security challenge for small RIAs

As an RIA, your firm operates under unique pressures. You handle incredibly sensitive client financial details and personally identifiable information, making data protection paramount. Regulatory bodies like the SEC, with rules such as 206(4)-7 regarding compliance policies and procedures, expect you to implement robust security measures to safeguard such information. Above all, the trust your clients place in you demands the utmost diligence in protecting their data against breaches and theft.

When personal devices are used for work without proper safeguards — a common scenario in a bring your own device (BYOD) environment — the risks multiply. A lost or stolen phone, or one compromised by malware, could expose client data, leading to significant financial penalties and, critically, a loss of that hard-won client trust.

Faced with these risks, some firms might lean toward highly restrictive rules. However, this micromanagement approach often backfires, leading to employee frustration, decreased morale, and sometimes, the use of less secure workarounds to get tasks done efficiently. At the same time, manually overseeing every device simply isn’t practical or sustainable for even small firms.

How mobile device management helps

So, how can your RIA or financial advisory firm secure data without making your team feel they are under surveillance? Mobile device management, or MDM, offers a compelling answer. MDM software is a specialized tool that lets you remotely manage, monitor, and secure any device — whether it’s a smartphone, tablet, or laptop — that accesses company information. It’s designed to protect the data, not to pry into personal lives.

MDM solutions address the micromanagement concern directly and effectively through the following:

Separation of work and personal data – Many MDM systems can create a secure, encrypted “container” or work profile on an employee’s personal device. This setup means firm applications and data live in a protected space, completely separate from personal apps, photos, and messages. Your firm manages the work profile, while the personal side remains private.
Automated security enforcement – Instead of relying on individuals to remember to set strong passcodes or enable encryption, an MDM solution can enforce these essential security settings automatically across all enrolled devices. Such automation ensures a consistent security posture without manual checks.
Remote security for business data – If a device is lost or stolen, or an employee leaves the firm, MDM allows an administrator to remotely lock the device or, crucially, wipe only the business-related data and applications. Personal photos, contacts, and apps remain untouched, maintaining employee privacy.
Focus on data security – The primary aim of MDM is to safeguard your firm’s and your clients’ sensitive information. It’s about maintaining compliance and protecting data, not monitoring an employee’s browsing history or personal communications.

Key MDM features for an RIA firm

When looking into MDM options, you’ll want to identify solutions that offer the right mix of security and usability. Look for these important features:

Essential security controls – At a minimum, the MDM should enforce strong passcodes or biometric authentication (e.g., fingerprint or face ID), encrypt sensitive data on the device, and provide capabilities for remote lock and selective wipe of business data.
Application management – Effective MDM solutions allow you to manage applications within the secure work profile. This capability can include pushing necessary, secure business apps (e.g., encrypted email or CRM access) to devices and potentially restricting the installation or use of unauthorized or high-risk applications with access to work data.
Ease of use for small teams – For firms with 5 to 25 users and likely limited IT staff, a cloud-based MDM solution is often ideal. These are typically easier to deploy and manage, with intuitive interfaces for both administrators and your team members.
Scalability and cost effectiveness – Choose a solution that fits your current size and budget but can also scale as your firm grows. Many MDM providers offer plans specifically designed for small businesses.

Crafting user-friendly BYOD policies

An MDM solution is a powerful tool, but it’s most effective when supported by clear, user-friendly policies. Your BYOD or general device security policy should guide your team on how to use technology securely and responsibly.

Consider including these elements in your policy:

Acceptable use – Clearly outline what firm data can be accessed on personal devices and for what purposes.
Security responsibilities – Define employee responsibilities, such as using strong, unique passcodes, keeping their device’s operating system up to date, and immediately reporting a lost or stolen device.
Transparency about MDM – Explain what data and settings the MDM solution manages and, just as importantly, what personal information it does not access or control. Transparency builds trust.
Enrollment and exit procedures – Detail the process for enrolling a device in the MDM system and what happens when an employee leaves the firm (e.g., removal of the work profile).

Communicating the why behind your MDM implementation and device policies is crucial. When employees understand that these measures are in place to protect clients, the firm, and even themselves from the consequences of a data breach, they are far more likely to be supportive.

Secure your firm and empower your team

Protecting client data while fostering a flexible and trusting work environment doesn’t have to be an either/or choice for your RIA or financial advisory firm. By thoughtfully implementing an MDM solution and coupling it with clear, fair, and well-communicated device security policies, you can achieve both.

Unsure about which MDM solution is right for your firm or how to craft an effective security policy? Our experts specialize in helping RIAs like yours implement practical IT security solutions. Contact us today for a consultation to discuss your firm’s specific device security needs and build a strategy that protects your data and supports your team.