Information Security Questions Every Lender Should Answer [Podcast]

Stiffer regulatory oversight of information protection practices has spurred lenders to reevaluate the way they collect and use personally identifiable consumer data. For lenders to keep up with changing data security compliance requirements, senior executives should start with creating a culture of awareness.

“Maturing [information security] programs come down to leadership,” Hyundai Capital America’s VP of Information Protection and Chief Information Security Officer Eddie Younker told Auto Finance Excellence. “My rhetorical question to lenders is: Why do you have these components in your organization? Are you checking some sort of box? Or are you being deliberate about engaging these sort of programs to the appropriate degree?”

Younker, who will join Auto Finance News in a dynamic and engaging presentation at the upcoming Auto Finance Accelerate event, says the most senior organizational leadership needs to understand the threat landscape and the associated risks to their organization. “There needs to be advocacy to ensure there is regular transparency with the board of directors or the C-suite executives to ensure that they maintain risk awareness and can provide appropriate direction and oversight to these programs — that’s absolutely critical,” he said.

While information is valuable, it is also a liability to the institution if lenders have not engaged every employee in information protection culture, said McGlinchey Stafford’s Chief Privacy Officer and Commercial and Consumer Litigation Attorney Richik Sarkar. “I’m a firm believer that culture beats strategy every time,” he said. “If you are trying to implement a program that doesn’t mesh with the culture — then the culture will work away from strategy.”

In this episode of The Roadmap, Auto Finance Excellence talks with Younker and Sarkar to identify what it takes to keep up with changing data security compliance requirements. Younker provides a guide for how lenders can build a strong foundation for information security practices. Meanwhile, Sarkar details how lenders can protect themselves and their organizations from risks and liability when handling consumer data.

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