In real estate, title insurance, and mortgage lending, technology is the backbone of every transaction. From processing closings to managing sensitive client information, organizations rely on a mix of software and hardware systems to keep business moving. But when it comes to cybersecurity, many firms overlook one of the simplest yet most effective safeguards: maintaining a complete and accurate inventory of all their technology assets.
An up-to-date inventory acts like a roadmap, giving you visibility into the tools and devices your business depends on. Without it, you risk blind spots that cybercriminals can exploit. In this installment of our Reducing Risk series, we’ll explore why inventory matters, the risks of neglecting it, and how to put an effective program in place.
Why inventory matters
Think of your software and hardware inventory as a building’s blueprint. Without it, contractors don’t know where the wiring runs or which walls are load-bearing. The same is true for your business: if you don’t know what you’re running, you can’t secure it.
A current inventory helps organizations:
- Identify outdated software that requires patches.
- Spot unsupported or noncompliant hardware.
- Plan ahead for replacements and upgrades.
- Demonstrate compliance with data security regulations.
This visibility is not only a best practice; it’s a foundational element of every recognized cybersecurity framework, from the National Institute of Standards and Technology, or NIST, to the International Organization for Standardization, or ISO.
The risks of going without
Failing to maintain an inventory leaves your organization exposed to multiple threats, including:
- Outdated software vulnerabilities: Cybercriminals actively target systems running old versions of software. Without an inventory, you may not know which programs need patching until an exploit brings business to a halt.
- Noncompliant or insecure hardware: Devices such as routers, laptops, or mobile phones can quickly become security liabilities if they fall out of compliance or stop receiving vendor updates.
- Costly downtime: Outages from unsupported systems can disrupt closings, damage client trust, and lead to regulatory scrutiny. According to industry studies, downtime costs small to mid-sized businesses an average of $8,000 to $25,000 per hour; losses that are particularly devastating in time-sensitive real estate transactions.
Benefits of inventory management
Establishing a comprehensive software and hardware inventory provides measurable advantages:
- Cybersecurity risk reduction: An accurate inventory makes it easier to identify outdated, unsupported, or vulnerable systems before they become targets.
- Improved patch management: With full visibility, IT teams can proactively schedule updates, avoiding gaps that attackers exploit.
- Compliance alignment: Title and lending professionals face strict standards under frameworks such as GLBA and ALTA Best Practices. A documented inventory helps demonstrate compliance during audits and examinations.
- Cost savings: By anticipating end-of-life replacements, businesses can avoid emergency purchases and plan budgets strategically. This reduces total cost of ownership while minimizing disruptions.
Implementing an effective inventory program
Building and maintaining an inventory doesn’t need to be complicated. Here are key steps to get started:
- Conduct a comprehensive audit
Begin with a full sweep of all devices, applications, and systems. Capture details like version numbers, licensing, and last-update dates. - Choose the right management tool
Use automated inventory software that integrates with your existing IT systems. For smaller firms, even structured spreadsheets can provide an essential baseline. - Review and update regularly
Inventory is not a one-and-done project. Schedule quarterly or annual reviews to capture new devices, software upgrades, and retirements. - Train and educate employees
Staff must understand why accountability matters, whether it’s logging new devices or applying software patches on time. Training ensures consistency and reinforces compliance. - Leverage reporting for decision-making
Use your inventory data to plan hardware refresh cycles, track software licensing costs, and identify where consolidating systems can reduce overhead.
Final thoughts
Cybersecurity doesn’t have to be overwhelming. By starting with something as fundamental as a software and hardware inventory, title, lending, and real estate professionals can take a proactive step toward protecting their organizations. With visibility comes control, and with control comes reduced risk, improved compliance, and stronger client trust.
Maintaining an inventory may seem basic, but it can make the difference between being blindsided by a preventable cyber incident and staying confidently ahead of threats.
Bruce Phillips is the SVP and Chief Information Security Officer for MyHome, a Williston Financial Group Company. This column does not necessarily reflect the opinion of HousingWire’s editorial department and its owners. To contact the editor responsible for this piece: [email protected].
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