Risk and Compliance Evaluation Essay Example | Topics and Well Written Essays - 4000 words

Risk and Compliance Evaluation - Essay Example In fact, there are specific provisions of the Data Protection Act of 1998 and the Financial Services Authority’s Business Principles that would be violated should the Brokerage Firm forces the issue of using such concept in its operation without any proper control or safeguards. The use of Software as a Service and Cloud computing would also expose the Brokerage Firm to be open to Breach of Confidence legal actions. To prevent such legal actions it is strongly advised that the Retail Investment Brokerage Firm adopt an Information Security Management System that will provide the controls that will protect the information of the clients. The implementation of an Information Security Management System would make the Brokerage Firm diligent in the protection of its client’s information. ... The operational possession of client information requires a huge amount of responsibility since any unauthorized release of information would cause undue harm or it can expose the client to dangers (Marshall, 2001). Even the European community in general has recognized the right to privacy of financial information as a right not to be trifled with. The Parliament of the United Kingdom has passed the Data Protection Act of 1998 to safe guard against such unauthorized intrusion to the lives of its subject. While the Financial Services Authority that is tasked to govern organizations that provides financial service to select clients have mandated several edict that aims to protect the clients of organization providing financial services. The financial services and the information technology industry also responded in kind by delivering a set of standards that can be used as framework with the sole purpose of protecting client data (Davidson, 2010). The advent of technology not only made it easier to bring enormous profit or revenue to the financial services organization’s clients it also made it easier to procure information that could adversely affect the life of its owner. The delicate balance between what is permissible exposure to threat in the face of enormous profit at the soonest possible time made it mandatory for financial services organization to manage the risks involved (Snedaker, 2007). The internet has spawned several innovations that would increase productivity in the same manner that it would raise the revenue for the client of the Retail Investment Brokerage firm. One such innovation is the Software as a Service concept or simply SaaS (Adler & Benoiff, 2009). Companies wishing to have the flexibility with the number of users that uses