The critical importance of information security to financial institutions. (Selected Topic).

American corporations currently face potential annual losses exceeding $250 billion from intellectual property theft, and as financial institutions move more of their products and services online, their vulnerability to theft, fraud and other breaches is increasing. Thankfully however, they are finding solutions.

Recognizing the mounting concern among businesses and consumers alike, national bank regulators have recently published several bulletins on security processes and controls. In addition, Congress passed the Gramm-Leach Bliley Act, which requires regulators to establish specific security standards for depositoty institutions to protect the privacy of customers' nonpublic personal information.

However, it is the financial institutions themselves that have begun to take the most aggressive, and perhaps the most important, efforts to address security. And, they are dealing with some difficult issues.

While, over the past five years, it has become common for organizations to hire information security officers and managers, monetary support and commitment for security initiatives has often been insufficient. Generally, while adequate funding may be available for network, application and infrastructure configuration, security is often viewed as a secondary issue. Too often, funding for critical security processes, such as policy enforcement and awareness, are omitted due the inability to recognize any measurable benefit from their deployment. Yet, the case for security is compelling on several fronts.

While the potential for financial loss is persuasive, if not alarming, by itself, the importance of security can also be measured in ways that relate directly to a business' bottom line. By understanding risk, cost and the associated probability of a security threat, a bank can apply a commensurate level of resources to address it.

So how much security is enough? Following are six key factors to consider:

1. Understand Your Information Assets