Managing risk effectively is one of the best ways to unlock business growth.
Risks range from financial and macro events to geopolitical and supply chain disruptions, and chief financial officers are tasked with strengthening their organizations to keep them safe.
Traditionally, CFOs focused on financial risk, but now they not only manage funds, but also protect the company’s assets from fraud and other threats. Cyber threats, data breaches, and other ecosystem hazards pose risks to an organization’s financial stability and reputation.
The shift to digital transformation has exposed businesses to new vulnerabilities, making cybersecurity a strategic imperative and requiring CFOs to establish effective defenses that enable sustainable business growth. Buy-in is essential.
In today’s operating environment, cybersecurity leadership is no longer limited to the IT department, but must be a collaborative effort across the organization.
Also read: 4 ways CFOs can avoid challenges and stay ahead of the competition
CFOs strengthen cybersecurity in strategic risk management
As stewards of financial health and sensitive data, CFOs must address cyber threats, regulatory requirements, and third-party risks.
By proactively addressing these challenges, CFOs not only protect their organizations from financial loss and reputational damage, but also position themselves as key leaders in the ongoing fight for cybersecurity resiliency. You can.
“CFOs always play an offensive role, but you also play a defensive role,” DailyPay CFO Ken Brause told PYMNTS in May. “And that impacts risk management.”
Adopting a collaborative approach requires the CFO to work closely with the chief information officer and chief information security officer to ensure that cybersecurity measures are not only in place but aligned with the overall business strategy. You need to make sure that you are. This coordination is critical to effectively managing and mitigating risk.
The PYMNTS Intelligence report, “Midmarket CFOs Tag Competitive Position Among Top Factors of Uncertainty,” identifies the top priorities of CFOs, especially midmarket CFOs. We have investigated your concerns.
The research shows that with the fear of uncertainty looming large, finance executives are focused on maintaining and strengthening their companies’ competitiveness, and an effective risk posture is key to supporting this.
See also: How CFOs are managing a year of regulatory uncertainty
Financial data remains a key target
CFOs are the custodians of their companies’ financial data, and in today’s interconnected world, that data is more valuable than ever. From sensitive information about cash flow and investment portfolios to payroll and vendor payment details, financial data is an attractive target for cybercriminals looking to monetize or use stolen information for ransom. Masu.
The rise of digital payments, e-commerce, and cloud-based financial systems has increased the amount of financial data being transmitted online, making it vulnerable to cyber-attacks.
For CFOs, ensuring the security of financial transactions and data is paramount, as violations can lead to financial losses and regulatory fines. Cybercriminals often exploit weaknesses in financial systems to commit fraud, and finance departments are responsible for implementing robust security measures to protect this data.
Beyond external threats, insider risk remains a concern. If a disgruntled employee or contractor gains access to financial systems, sensitive data can be compromised or internal controls can be compromised.
Related article: Reducing the attack surface: How data breaches compromise corporate networks
Third-party risk management has become a concern for CFOs as companies rely on third-party vendors, suppliers, and service providers for cloud storage, software, and payment processing. A breach at a third-party vendor can compromise a company’s financial data or disrupt business operations, so it’s essential for CFOs to assess the security posture of external partners.
High-profile cyberattacks such as ransomware, phishing, and business email compromise (BEC) also target organizations of all sizes, with finance departments often at the center of these attacks.
The threat of invoice fraud is growing, with cybercriminals and insider fraudsters finding ways to manipulate payment processes for ill-gotten gains.
Ultimately, as the organization’s financial steward, the CFO is in a position to champion cybersecurity investments. For many companies, cybersecurity budgets are being scrutinized alongside other operational expenditures, and CFOs must weigh the costs and potential benefits of cybersecurity solutions.
