The transition from proprietary online networks to an Internet-based interface for cash management services is leading corporations and their banks to face new security concerns and added operational risk, according to a new report from TowerGroup.
The report, "Mitigating Risk in Web-based Cash Management: Can Technology Make the e-World Safer?", shows top security concerns for Web-enabled cash management range from user authentication and authorisation, to ensuring that critical correspondence is protected from being modified or destroyed, to securing the confidentiality of information at every point between a bank and its corporate customers.
The research reveals a clear need for banks and their corporate customers to place greater emphasis on addressing the security issues of Web-enabled cash management. This is largely due to cash management staff having little formal training in Internet security, aside from the most basic understanding of password protection, says TowerGroup.
The research firm says vendors must play a key role in assisting cash management stakeholders strike the right balance in the level of security they implement.