The Top 5 IT Mistakes LA Investment Advisors Can’t Afford to Make

Craig Pollack | Feb 16, 2016

The Top 5 IT Mistakes LA Investment Advisors Cant Afford to MakeIt’s an unfortunate fact of life that we all make mistakes. Sometimes they can’t be helped and sometimes the fallout can be contained with relatively little impact. What happens, however, when a mistake is made that could cost you and your investment firm dearly? How could you overcome such an issue and how frustrating would it be if you knew it could have been easily avoided?

IT mistakes are incredibly easy to make, but just as easy to avoid altogether. And being able to avoid them in the first place really comes down to your approach to IT.  Do you have a proactive or reactive approach? Are you putting your firm’s IT requirements first?

The following are five key IT mistakes that LA Investment Advisors can’t afford to make:

1. Failure to keep data secure

Your firm handles a lot of data during your average working day, including clients’ details, sensitive documents, and market information. What would happen if that data fell into the wrong hands, or if it was lost for any reason at all? It is essential that you protect your firm’s data in any way that you can, including the use of firewalls and malware, encryption software and data backup and recovery programs. The loss of your company’s information could cost you dearly, so this is one mistake that you really can’t afford to make.

2. Failure to properly manage 3rd party vendors

Outsourcing your IT is incredibly popular these days, enabling an expert to handle your every IT need while you focus on the job at hand: your clients and their investments. It is, however, essential that you handle outsourcing appropriately. For example, relinquishing control of your IT simply because you don’t understand a particular aspect can cause horrendous problems down the line, while failing to outsource simple tasks will eat up your time and that of your staff. If you outsource your IT, first off - make sure the partner you choose is understands and has experience working with RIAs. Then, on an ongoing basis, make sure that at a minimum you always have all of your information documented and on hand.  You should never be at their mercy.

3. Relying on technology without the appropriate safety net

Interacting with technology, more likely than not, pretty much defines your day-to-day operations.  But, it’s important to know when to take a step back. You’re an investment advisor – focus on what you do and let others experienced in IT ensure your IT is solid. Don’t rely on technology without making sure you’ve minimized its failure points. Require that the appropriate level of redundancy is in place to ensure uninterrupted computing resources.

4. Failure to keep up with the times

The world of investing is always changing, as is technology. As an investment advisor, it’s your job to make sure that you’re always up with current affairs and investment opportunities, and your involvement in the IT world should be no different. Have you updated or upgraded your software recently? Are you aware of the latest IT developments? Are you protected against the latest ransomware? Are you secure against the latest hacks? Failing to follow the latest technological innovations can be as damaging to your business as neglecting the investment markets.

5. Failure to embrace the app

In much the same way that it is essential to keep up to date with technology, it is also vital to embrace the future. Apps are everywhere these days, and they can be a real asset to a business such as yours. Clients can contact you, monitor investment opportunities and receive updates with no effort at all, yet you could be missing out on a whole new realm of time management and customer service.

Bottom Line

There is, of course, a whole range of IT pitfalls that you’ll want to avoid careening into. It’s essential to accept IT as a vital part of your daily routine and to understand how technology can complement your business and reduce your workload. If you choose to outsource your IT, just like your clients expect from you, it’s equally important that you partner with an experienced trusted advisor for your IT service.  If you’re unsure about where you stand, please feel free to contact us – we would be happy to discuss any IT issue you may have.

Has your firm run into an IT issue that you're struggling with? Let us know your thoughts in the Comments box below.

And to follow-through on the tips introduced here, be sure to download your free guide, Investing in High Net Worth Clients: The LA Investment Advisor's Guide to Using Technology to Manage and Grow Your Firm.


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Craig Pollack

Craig Pollack

Craig is the Founder & CEO of FPA Technology Services, Inc. Craig provides the strategy and direction for FPA, ensuring its clients, business owners, and key decision makers leverage technology as efficiently and effectively as possible. With over 25 years of experience building the preeminent IT Service Provider in the Southern California area, Craig is one of the area’s leading authorities on how small to mid-sized businesses can best secure and leverage their technology to achieve their business objectives.