In a World of Emerging Technology, One Truth Remains

Artificial intelligence, quantum computing, cryptocurrency, banking as a service - there’s no shortage of new technology shaking up the financial world. For community banks, keeping up with these trends isn’t just a matter of innovation; it’s about staying secure.

With so much change, it’s easy to feel overwhelmed. What risks do these new technologies bring? What’s the right move for your institution?

Here’s the reality: no matter how much technology evolves, the fundamentals of good risk management don’t change. If you stick to the basics, you’ll be able to evaluate, adapt, and manage risk - without getting lost in the noise.

Here are five practical steps to help you stay ahead:

1. Start with a Risk Assessment

Before adopting any new technology, understand the risks. This means evaluating:

• What threats come with this technology?
• What vulnerabilities could it introduce?
• What security controls are available?
• What risks remain after controls are in place?

A solid risk assessment helps you make informed decisions - whether that means moving forward, putting safeguards in place, or deciding it’s not worth the risk.

2. Establish a Strong Control Framework

Once you understand the risks, put the right controls in place to mitigate them. This includes:

• Technical controls (firewalls, encryption, access management)
• Physical controls (hardware security, facility protections)
• Policies and procedures (acceptable use guidelines, vendor oversight)

A clear framework ensures that new technology is implemented with security in mind - rather than as an afterthought.

3. Monitor and Govern the Technology

Technology isn’t a “set it and forget it” situation. As your bank implements new tools, make sure you:

• Define key metrics to monitor (e.g., system performance, security incidents)
• Assign ownership for ongoing risk management
• Actively track remediation efforts and make adjustments as needed

Staying proactive helps you avoid surprises and adjust before small issues become big problems.

4. Conduct Regular Audits

When new technology carries high inherent risk, regular audits are essential. Key security controls should be reviewed at least annually to:

• Ensure they’re working effectively
• Validate compliance with regulations
• Identify gaps that need to be addressed

Audits aren’t just about checking boxes—they provide critical feedback for continuous improvement in your security program.

5. Communicate Risk Through Reporting

Risk management doesn’t stop with IT—it’s a business-wide effort. Regular reporting ensures that:

• Business units understand their role in managing risk
• Leadership has visibility into security trends
• The board can make informed decisions based on real risk data

Good reporting connects everything back to your initial risk assessment—closing the loop on the process and ensuring accountability at every level.

Final Thoughts

The pace of technology won’t slow down, but that doesn’t mean your cybersecurity approach has to be reactionary. By following these five steps—assess, control, monitor, audit, and report—your bank can confidently manage risk, no matter what’s on the horizon.

If you need help navigating cybersecurity challenges, our outsourced CISO services are designed to help community financial institutions. Contact us at sales@bedelsecurity.com for more information.