Financial services risk: the data behind the threats

Financial Services Our recent study of key accountants in the financial services industry uncovered issues ranging from wrongful termination lawsuits to malicious artificial intelligence.

In this article, you will learn more about the information we collect and the risks faced by financial services professionals. However, one thing is clear: accountants, bookkeepers, and tax preparers, just like other businesses, need protection that, unfortunately, is difficult for them to access.

avoid mistakes or pay the price

Financial professionals deal with large amounts of private financial data, and mistakes can be costly. Nearly half of accountants (46%) admit to making mistakes, and of those who have, 72% say they or their firm was financially responsible for the mistake.

Despite these mistakes, many accountants still believe they made them Do Very little effort is being made, 71% would even say they are ready for a financial audit Public Company Accounting Oversight Board (PCAOB). Even with such confidence, accountants should not carry the weight of the company on their shoulders.

Without appropriate insurance policies, accountants, bookkeepers, tax preparers and other financial services professionals can be held liable for their own mistakes, putting their jobs, companies and clients at risk.

Less work = more stress

News of job cuts have dominated the headlines in 2023, leaving many accountants worried they could be next. More than half of accountants (54%) are concerned about redundancies.according to Brad BarkinAccountants have no reason to worry, even in 2024, says Embroker’s vice president of legal and accounting practices Organizations in other industries continue to downsize.

“Many large accounting firms have made layoffs this year, but this is nothing new. From an economic perspective, we have seen larger accounting firms reduce their workforces in the past, and we will likely continue to see larger accounting firms reduce their workforces. Accounting firms are laying off employees.” Balkin said: “In the future, talented accountants will always have job security.”

Working from home puts financial services professionals at a disadvantage

Finance is now more digital than ever before, and the volume and complexity of finance is increasing. Cyber ​​attacks continue to increaseFinancial professionals must be more careful than ever with personal and professional financial messages, especially those working from home.

A majority of accountants believe that if their business were hit by a cyberattack, their clients’ (35%), themselves (34%) and their company’s (23%) financial information would be at risk. While it may not always be possible to completely avoid cyberattacks, taking steps to mitigate the threat is crucial.

Our investigation:

Pictures from a survey of more than 200 accountants

Businesses consistently identify cyber threats as a top concern; however, accountants often avoid having public conversations about cybersecurity, with 46% reporting little to no dialogue with leadership on the topic. Companies that neglect to discuss, address and protect against these risks may find themselves in a compromising position.

Financial Services Risk: Unique Protection for Underserved Populations

Insurance for financial services professionals is often seen as an afterthought in the industry, with accounting and financial services risks often misunderstood by insurance companies. Underserved by larger companies and traditional players in the industry, financial services professionals are looking for insurance policies that meet their needs. needs and be reliable in the face of growing and emerging risks.

Worryingly, 34% of respondents reported having a standalone network policy with standard coverage only, while nearly a third did not know what type of coverage they had. Accountants and other financial professionals are trained to understand the business and the risks, yet they are kept in the dark.

Leveraging this survey data and our ongoing market research efforts, we are pleased to announce the launch of our newest insurance program developed specifically for financial services professionals. We are pleased to provide accountants, bookkeepers and tax preparers with basic policy, cyber and general business risk needs that address their professional responsibilities.

Check Complete plans are available here, designed with financial services risk in mind.

read Full press release about our new insurance program for financial services professionals.

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