Understanding Cybersecurity Consulting and Managed Service Providers for Financial Institutions
July 26, 2023
Understanding Cybersecurity Consulting and Managed Service Providers for Financial Institutions
July 26, 2023
Man pointing to cybersecurity

Man pointing to cybersecurityThis is the fourth blog in our comprehensive series on cybersecurity consulting for financial institutions. In the ever-evolving landscape of cybersecurity, financial institutions face increasing challenges in safeguarding their sensitive data and critical assets. To fortify their defense against cyber threats, many institutions turn to cybersecurity consulting and managed service providers (MSPs) for expert guidance and support. Understanding key differences between consultants and MSPs can be difficult but is a crucial step in figuring out the best option for your financial institution. In this blog, we’ll explore the roles of cybersecurity consultants and MSPs in the financial industry, shedding light on their unique contributions to enhancing information security.

What is Cybersecurity Consulting for Financial Institutions?

Cybersecurity consultants play a pivotal role in providing specialized expertise and guidance to financial institutions. With a robust understanding of cybersecurity concepts, they offer comprehensive assistance in bolstering the institution’s information security program. Unlike MSPs, who primarily focus on managing third-party software, cybersecurity consultants take a broader approach, supporting the institution across the board.

The services provided by cybersecurity consultants encompass a wide range of critical areas. One of their key responsibilities is to offer guidance and project management assistance in implementing strong cybersecurity measures. This includes formulating tailored strategies to address the institution’s specific security challenges and compliance requirements. Moreover, cybersecurity consultants actively engage in staff training, enlightening employees at all levels about cybersecurity best practices. By fostering a strong cybersecurity culture, these consultants empower the institution’s workforce to recognize and respond effectively to potential threats.

In addition to proactive measures, cybersecurity consultants excel in preparing financial institutions for potential cyber incidents. They develop comprehensive incident response plans, ensuring the institution is well-equipped to handle and recover from security breaches efficiently and with minimum disruption. Cybersecurity consultants often conduct in-depth risk assessments to identify vulnerabilities and potential points of exploitation. By pinpointing critical risks, financial institutions can prioritize their resources to mitigate vulnerabilities effectively.

What are Managed Service Providers (MSP) for Financial Institutions?

Managed Service Providers (MSPs) offer a different but equally valuable approach to cybersecurity for financial institutions. Their primary focus lies in managing and monitoring an institution’s IT infrastructure, including security systems, network devices, software, and data backups. While MSPs may not always possess the same level of cybersecurity specialization as consultants, they excel in providing continuous threat monitoring and incident response services. Their proactive approach enables them to detect and respond promptly to potential threats, minimizing the impact of cyber incidents.

In contrast to consultants, who work on specific projects, MSPs establish long-term partnerships with financial institutions. As an extension of the institution’s IT department, MSPs take on the responsibility of managing and securing the institution’s IT environment on an ongoing basis. One of the key advantages of MSP services is the comprehensive nature of services supported. They offer a wide range of IT support and management services, making them a one-stop solution for various technology needs. This all-encompassing approach ensures that all aspects of the institution’s IT infrastructure, including cybersecurity, are well-managed and protected.

What are key differences between Cybersecurity Consultants and Managed Service Providers?

While both cybersecurity consultants and managed service providers (MSPs) play important roles in enhancing cybersecurity measures, there are distinct differences in their roles and responsibilities.

Scope of Services

Cybersecurity Consultant: A cybersecurity consultant typically offers specialized expertise and guidance on cybersecurity strategy, risk assessment, and compliance. They work on specific projects, providing recommendations, designing security frameworks, conducting audits, and developing incident response plans. Consultants often have deep technical knowledge and industry experience to help organizations identify vulnerabilities, mitigate risks, and improve their overall security posture.

Managed Service Provider: An MSP, on the other hand, offers ongoing outsourced IT services, which may include cybersecurity as part of their comprehensive service package. MSPs take more of an oversight approach by managing and monitoring an organization’s IT infrastructure, including security systems, network devices, software, and data backups.

Engagement Model

Cybersecurity Consultant: Consultants typically engage on a project basis or for a specific period. They may be hired for a particular security assessment, policy development, or to address a specific cybersecurity challenge. Their engagement is often focused on delivering specific outcomes or recommendations.

Managed Service Provider: MSPs generally engage in long-term partnerships with organizations, providing ongoing IT support and management services. MSPs establish a continuous relationship, acting as an extension of the organization’s IT department and taking responsibility for managing and securing the IT environment.

Skill Set and Expertise

Cybersecurity Consultant: Consultants possess deep technical knowledge and expertise in various aspects of cybersecurity. They stay updated with the latest threats, industry trends, and emerging technologies. They often specialize in areas such as penetration testing, security assessments, compliance frameworks, incident response planning, and ongoing cybersecurity awareness training.

Managed Service Provider: MSPs typically have a skill set that encompasses IT infrastructure management, system administration, network monitoring, and often cybersecurity. While they may not have the same level of specialization as consultants, they offer a comprehensive range of services to ensure the overall health and security of an organization’s IT environment.

Responsibility and Accountability

Cybersecurity Consultant: Consultants provide recommendations and guidance, but the responsibility for implementing and maintaining cybersecurity measures lies with the organization. The consultant’s role is advisory, and the organization is accountable for executing the recommended actions and managing their own cybersecurity.

Managed Service Provider: MSPs often assume responsibility for managing and securing the IT infrastructure. They may be accountable for implementing and maintaining cybersecurity measures on behalf of the organization. MSPs often have service level agreements (SLAs) in place that outline their responsibilities, response times, and performance guarantees.

Looking for a Cybersecurity Consultant for Financial Institutions?

In summary, while managed service providers offer ongoing IT services that often include cybersecurity as part of their package, cybersecurity consultants provide specialized expertise and guidance for specific projects that are often focused on FFEIC and GLBA requirements. Both play valuable roles in enhancing cybersecurity, but their approaches and responsibilities differ based on the engagement model and scope of services. If you are looking for some guidance on the best approach for your organization, or if you are looking for a cybersecurity consultant for your financial institution, please contact LMSolutions today.