Justin Kapahi, technical director of the financial services practice at External IT

From a technology standpoint I believe there, again, will be an increased focus on cybersecurity initiatives in 2016.

Managers are severely lacking in everything from entitlements, to data control, to network defense and lastly, people do not understand their risk.

Once a breach occurs, it becomes more difficult to know where it came from, because of the wide inventory of access devices at any particular company. The breach could come from any device client data was living on. And given the consumerization of business tools, such as people using their iPhones for business, people are using tools they obtained at the mall and putting corporate data in there via email apps or corporate apps.

This is made entirely worse by the fact that almost all types of financial businesses are changing from server-based applications to web-based applications. It used to be that you would host an application on a server in the office and control who had access to that by either physical location or access. Now that data can be put on any electronic device -- whether on a television, phone, computer, etc. -- how do you measure your risk when the number of devices data could be exposed on is possibly infinite?

These are the challenges presenting themselves, and are difficult to answer, by those who are not experts in financial technology.

Subscribe Now

Access to premium content including in-depth coverage of mutual funds, hedge funds, 401(K)s, 529 plans, and more.

3-Week Free Trial

Insight and analysis into the management, marketing, operations and technology of the asset management industry.