How Does WORM Mandate Affect Your Bottom Line?
Once upon a time, a computer worm only stood for a self-replicating computer program that exploited vulnerabilities. This potentially caused damages that could equal hundreds of thousands to millions of dollars. The digital business world adapted with added security software and firewalls.
Unified Communication (UC) has surged over the last 20 years and so has the need for records to be stored electronically. Per the official Financial Industry Regulatory Authority (FINRA) website, “Write Once, Read Many,” or WORM format, “prevents the alteration or destruction of records stored electronically.” The FINRA plays a critical role in disciplinary actions when businesses fail to comply with WORM.
With over $200 million in fines and restitution in 2016, FINRA is hard to forget. If you are a firm bound by the compliance rules of WORM, it is in your best interest to comply. With increased budget cuts, businesses consider the risk and assess the cost of fines versus implementing a compliance solution to combat this issue. Some may consider saving on software licensing, staff training, and software implementation time for IT. However, this is now a wise solution to avoid meeting compliance mandates. Once FINRA finds violations within an organization, your firm will be fined and you will need a plan to resolve deficiencies. The cost of fines and additional staff to get these resolutions in place at a faster pace can cost your firm millions. This may also cause damages to your brand, create opportunity for additional lawsuits, and directly affect your bottom line. This certainly is the case of rather being safe than sorry.