As a registered investment advisor (RIA) or financial advisor, you probably already know your clients expect seamless service and airtight security. your IT setup can make or break your ability to deliver on those expectations? Fortunately, proactive IT monitoring exists to make your life easier.
From wresting control over unexpected outages to staying compliant with the Securities and Exchange Commission (SEC) and the Financial Industry Regulatory Authority (FINRA), proactive IT monitoring works behind the scenes to keep your firm running like a well-oiled machine.
The key benefits of proactive IT monitoring for RIAs
Proactive IT monitoring entails continuously checking and analyzing your IT systems to identify potential issues before they escalate into major problems. The key benefits it offers RIA and financial advisory firms include:
Reduced downtime
Nothing sends clients running faster than downtime that leaves their urgent financial queries unanswered. Proactive IT monitoring means your systems are always in good working condition, minimizing the chances of unexpected outages that can disrupt your operations.
Say a server is reporting errors and showing signs of failure. With proactive monitoring, you can repair or replace it before it goes down. Your customer relationship management (CRM) system, portfolio analysis tools, and email platforms remain online and accessible to your clients.
Enhanced security
The financial services industry is a favorite target for cybercriminals. Whether they’re after personal information, financial data, or just looking to cause chaos, hackers spare no effort in trying to breach your systems.
Proactive IT monitoring keeps you one step ahead by sniffing out suspicious activity, vulnerabilities, and malware before they can do damage. A 24/7 monitoring system never takes a coffee break; it continuously scans your systems for threats and handles updates, all while protecting client confidence (and your reputation).
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Improved system performance
Do you rely on tools such as Salesforce, Orion, or Microsoft Teams to streamline your workflows? Proactive IT monitoring helps keep these critical systems running at their peak.
From ensuring your portfolio management software doesn’t lag during a volatile market session to making sure your email threads deliver timely communication, monitoring minimizes hiccups and maximizes efficiency. It’s like having a personal IT coach making sure your digital tools stay in fighting shape.
Cost savings
An ounce of prevention is worth a pound of cure, and proactive IT monitoring embodies this philosophy perfectly. By addressing potential issues early, you slash the chances of costly emergency repairs, hardware replacements, and unexpected downtime.
Even better, predictable IT spending becomes the norm, helping you budget confidently. No more nasty surprises eating into your tech budget.
How proactive IT monitoring supports compliance
If the words “compliance failure” make your palms sweat, it’s with good reason. Failure to comply with SEC or FINRA regulations could mean hefty fines, a ruined reputation, and even a loss of your license to operate. But proactive IT monitoring doesn’t just improve security; it also acts as your compliance safety net.
Keeping up with regulatory requirements
Regulators don’t just suggest maintaining secure systems, they require it. Proactive monitoring automates software patches, system updates, and vulnerability management to help you stay on the right side of compliance.
For example, SEC Regulation S-P requires firms to have policies that protect client data “against any anticipated threats or hazards.” A proactive monitoring system can flag security gaps in your systems and help ensure you’re meeting this requirement.
Supporting audit preparedness
Regular monitoring means fewer compliance slip-ups when the SEC or FINRA comes knocking. Beyond producing reports that prove you’re in compliance, a proactive IT monitoring system shows regulators that you’ve invested in robust controls to keep client data safe and your systems up to date.
| Related reading: Keeping ahead of RIA compliance: The role of your IT provider |
Finding the right proactive IT monitoring partner
The importance of proactive IT monitoring for RIA and financial advisory firms is clear. But unless you have an internal IT team with the knowledge and resources to handle it all, partnering with a managed IT services provider (MSP) can be your best bet.
24/7 expertise from specialized pros
An MSP like RIA WorkSpace uses advanced tools to monitor IT systems around the clock. That failing server we mentioned at the beginning? Our team would catch and fix the warning signs before you even knew something was off.
MSPs that specialize in serving RIAs and financial advisory firms also understand the unique IT compliance requirements of the industry, which means they can provide fully tailored solutions to meet those needs.
A better option than DIY
Proactively monitoring your IT systems yourself or hiring a generalist IT provider might seem tempting from a budgetary standpoint. But consider the risks:
- DIY monitoring – requires expensive tools, a dedicated team, and constant vigilance
- Generalists – often lack the in-depth knowledge or tailored solutions required for financial firms
An MSP that becomes your assigned IT team brings both the tools and expertise to ensure end-to-end IT health. Think of us as your IT defense squad, constantly scanning the field, blocking threats, and keeping your systems in top condition. And for a fixed monthly fee, you get all the advantages of advanced IT without the expense and headaches of managing it yourself.
| Related reading: In-house IT vs. managed IT services? A cost analysis for RIA and financial advisory firms |
Curious how proactive IT monitoring can work for your firm? Reach out to RIA WorkSpace today. We’d be happy to explain how we can help you and your clients stay safe, compliant, and focused on achieving financial success.