It’s 3 AM, where is your sensitive financial and operational data?

As businesses continue to digitize and rely on technology, cyber threats have become a prominent concern. Cybersecurity attacks are evolving and becoming more sophisticated, making it essential for companies to prioritize protecting their data. And while responsibility for cybersecurity has traditionally fallen on IT departments, CFOs are increasingly taking on a bigger role in managing cyber risk. In this blog post, we'll explore why managing cyber risks is crucial for CFOs and the steps they can take to protect their company's financial well-being.

1. The financial consequences of data breaches can be catastrophic

Data breaches are not only a costly problem in terms of lost data, but they can also result in lawsuits, penalties, and loss of business. All of these consequences can significantly impact a company's finances. CFOs must be proactive in managing cybersecurity risks so they can avoid these potential financial losses.

2. Cyber threats are increasing in frequency and complexity

Cybercriminals are continuously developing new tactics, and as a result, cyber risks have become more diverse and frequent. CFOs must stay informed and strategically plan for potential attacks to stay ahead of evolving threats.

3. Managing cyber risks is essential for building trust with stakeholders

In today's age of data privacy concerns, customers and investors expect organizations to take adequate measures to safeguard their confidential information. CFOs must prioritize data protection and implement robust cybersecurity measures to enhance their company's reputation.

So, what steps can CFOs take to manage cyber risks? Here are a few key strategies:

• Stay informed and up-to-date on evolving cyber threats and vulnerabilities.
• Conduct regular security audits to identify areas of weakness in the company's cybersecurity posture.
• Invest in robust cybersecurity measures such as firewalls, anti-virus software, and employee training.
• Develop an effective incident response plan to help the company quickly respond to security incidents and mitigate their impact.

A recent example in the news of a major cyber breach occurred with the Australian branch of PcW and also impacted its rival EY.

The cybercrime group Clop first broke into the file service, which is called MOVEit, in late May and began stealing data from entities including US federal agencies, energy giant Shell and the BBC. Rival consultancy EY was also affected in the breach, which is growing larger by the day as companies reveal they have been targeted.

Many companies continue to share sensitive information on documents stored in similar file-sharing platforms. CFOs can consider moving more of their information away from files into more secure and centralized systems.

For example, many finance and accounting teams continue to retrieve sensitive financial and operational data from their transactional systems to feed their spreadsheet models. These models can support activities including FP&A and closing the accounting books. This process circumvents all security protocols securing this data in transactional systems such as the ERP. This risk occurs when this same data finds its way into dozens or hundreds of disconnected spreadsheet files used by finance and accounting teams. Once you allow your data to be populated into spreadsheet files which are popular with most teams in finance and accounting, you open your company to several data theft risks including:

• Data stored in local spreadsheet files in employee's devices are at risk in the event the device is stolen.
• Spreadsheets shared via email can easily be stolen via multiple methods. Individual email accounts are an easier target to hack compared to more secure corporate platforms. Employees can more easily forward the email along with the files to their personal email or any other recipient.
• Employees may store the files locally and keep them for years after they have left their employment with the company or moved into a different position where access to that same data is no longer permissible.

CFOs can protect this data by replacing this disconnected spreadsheet process with real platforms such as CPM Software (Corporate Performance Management). With CPM in place, all data from the ERP can be securely integrated into the CPM system avoiding any leakage to loose documents which can be shared.

In conclusion, cybersecurity is a critical component of managing an organization's financial well-being in a digital age. CFOs must take the necessary steps to protect their organizations from cyber threats, from investing in cybersecurity solutions to staying abreast of the latest threats. By doing so, they can reduce the financial risks associated with data breaches, build trust with stakeholders, and safeguard their company's reputation.

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