The role of the CFO is evolving. Whether at a bank or credit union, today’s finance leaders wear many hats. One of which is a cyber security ‘hat’. Constant breaches within financial institutions warrant such a ‘wardrobe’. Insider threats are growing, outside adversaries are multiplying at rapid pace, and attacks on financial departments and companies are ever-increasing. Unfortunately, classic security controls like firewalls and antivirus are easily compromised as attackers become more sophisticated.
As threats increase, risks to businesses increase—and for CFOs and VPs of Finance, defining an adequate budget to account for those cyber risks and allocating proper resources is of the utmost importance to protect companies and its clients. Finance leaders are no longer siloed to reviewing financial statements and spreadsheets—their role extends far beyond the numbers to include cyber security.
Some CFOs may not be comfortable with this change but the reality of cyber security today mandates involvement from the CFO/VP of Finance to develop a cyber readiness strategy. Why are finance leaders critical to the cyber security conversation? Because many CFOs need to address and mitigate the business risk concerns of the C-suite , board , and investors (not to mention continuing to improve the ‘financial health’ of the company).
Any sort of digital compromise to a financial services company, results in damaging monetary and reputational outcomes that directly impact the financial function of the organization.
Hence why cyber risk mitigation is and should continue to be a critical priority for CFOs today . And for many, it already is: According to a 2019 study from Protiviti, 84% of global CFOs and VPs of Finance cited security and data privacy as a high priority for them. Many CFOs are already taking the reins of the cyber security challenges to get ahead of looming risks and imminent vulnerabilities. How? By taking a more active role in defining cyber security strategy in a way that effectively hardens posture while ensuring company growth.
As such, the typical CFO responsibilities listed below, are only a part of many to come:
- identifying and monitoring risks of critical assets to protect company/client data
- ensuring critical infrastructure operations meet regulatory requirements
- contributing to the optimization of digital asset access and utilization to safeguard against attackers
That third responsibility may seem a tad ‘out of the norm’ for a CFO. Typically a CIO or CISO might be in charge of that objective. But as more financial services companies respond to digital transformation demands, data becomes a critical asset to protect. Much of that data “lives” on the devices that company employees use every day. CFOs should have a general awareness of who has access to what, where, and when and be aware of the policies in place that enforce security at all levels.
Since data is a valuable company asset, the CFO’s responsibility to ensure the financial ‘health’ of the company becomes much more complex as cyber security asset and risk management becomes a top priority. Security Boulevard writes “A modern CFO will have an excellent grasp on how an organization manages cyber security and will be able to ask the right questions.” We agree!
For CFOs to make cyber security a priority, they are having to work across many lines of business within their organizations to contribute to the construction of a holistic cyber security program that has full buy-in from all employees (leadership/C-Suite included).
Learn how to prioritize risk mitigation in your financial services company.
Further, CFOs bring a unique perspective to the ‘building a culture of cyber security’ conversations as they are extremely committed to helping the company grow. While CFOs may not be cyber security experts, they do have a unique take on how and what solutions to invest in that will maximize the potential for company growth over time.
By working hand-in-hand across departments like IT and legal, CFOs and finance leaders can develop a holistic cyber security plan that goes beyond merely ‘evaluating cyber insurance coverage’. A huge part of strategic cyber planning includes understanding what current companies are doing to mitigate cyber risk. Foundational elements need to be established first.
While cyber insurance is a good start, other measures need to be taken to ensure that companies are not just reacting when threats occur, but instead, are taking proactive measures to get ahead of threats before they hit. A proactive approach should also include the adoption of a persistent cyber security training program to support frontline defenders who are doing the day-to-day defense against ambitious yet malicious adversaries.
With the right cyber security training in place, teams can be assessed on their abilities to identify and mitigate risks before they happen, while supervisors (e.g. CISOs) can glean insight into how teams are responding and areas for improvement. This intel can translate upward to the CFO who will need to know the risks associated with gaps in cyber security response.