Financial Leaders Organizational Enhancing Cybersecurity

Carol Diaz, C-level executive in Finance, Technology and Operations for GBS & SSC Support Services at ScotiaGBS Colombia del grupo Scotiabank.

Carol Diaz, C-level executive in Finance, Technology and Operations for GBS & SSC Support Services at ScotiaGBS Colombia del grupo Scotiabank.

Carol Andrea Diaz is a public accountant from the Universidad de la Salle in Colombia, a Specialist in Tax Management and Administration from the Universidad Externado de Colombia and a Master's Degree in Business Management from the INALDE Business School.

Carol has more than 24 years of work experience, 10 in the consulting sector at KPMG and EY, 14 in the real industry and 10 in the shared service center model.

Since 2017, Carol joined the Scotiabank group to contribute to the growth of the Global Business Services project, leading the Financial Services provision unit, later the Services Unit for the Prevention of Money Laundering, and the last three years she has been leading the finance area of the Colombia and Dominican Republic Campus in her role as Vice President of Finance, as well as the Technology and Operations support services at GBS Colombia. Before her different roles at Scotiabank, Carol was the Director of the Financial Services Center for AIG in Latam (American International Group) and the Andean Tax Region Manager at AIG Insurance and Cemex Colombia and Peru as Tax manager.

In today’s digital landscape, the responsibilities of a Chief Financial Officer (CFO) extend far beyond the traditional scope of financial management. As cyber threats become more sophisticated and pervasive, CFOs are increasingly finding themselves at the intersection of finance and cybersecurity, going beyond investment return. This evolution underscores the critical importance of financial leadership in safeguarding an organization’s assets and ensuring its long-term resilience.

The Growing Intersection of Finance and Cybersecurity

The modern CFO must navigate a complex environment where financial stability and cybersecurity are deeply intertwined, therefore, CFOs must understand the risks associated with cybersecurity and play an active role in mitigating them.

A single data breach can have unquantifiable financial consequences, starting with reputational damage, loss of trust, regulatory fines, income operative losses or legal costs. One of the main CFO responsibilities is budgeting, in which capex investments are very carefully analyzed to understand the return or the productivity of an asset. When investments in cybersecurity come to play, analysis should be focused on considering the avoidance of potential losses, rather than how much revenue the asset will generate, because the answer to that question could be an indefinite return. In addition, investments are aligned with the organization’s broader risk management strategy and CFOs are uniquely positioned to assess the cost-benefit analysis of cybersecurity expenditures, balancing the need for robust security measures with the financial health of the organization.

"By taking a hands-on approach to incident response plans, CFOs can be more prepared to help their organizations navigate the outcome of a cyberattack with greater confidence and control"

Traditionally, cybersecurity was viewed as a technical issue, the responsibility of IT departments and CISOs, but as cyber threats have evolved, it has become clear that the financial implications of these threats demand the attention of the CFO. Cybersecurity is no longer just an IT concern, it is a business-critical issue that requires a strategic approach, one that integrates financial oversight with risk management and operational resilience, and each industry has different types or risk associated and more confidential information, which confirms that the recipe is not one-fit for all.

Moreover, CFOs can drive the integration of cybersecurity into the organization’s overall governance framework. By working closely with the CISO and other key stakeholders, CFOs can help establish clear policies and procedures that promote a culture of security across all levels of the organization. This includes advocating for regular cybersecurity training, ensuring compliance with industry standards, and fostering an environment where cybersecurity is viewed as a shared responsibility.

Financial Leadership in Incident Response

In the event of a cyber incident, the CFO’s role continues to be very critical. They must quickly assess the financial impact of the breach and work on a coordinated response effort, ensuring that the organization can recover swiftly and minimize losses. This may involve working with legal teams to manage regulatory compliance, communicating with stakeholders to maintain trust, and overseeing the allocation of funds for remediation efforts.

In some organizations, CFOs can play a proactive role in incident preparedness by supporting the development of robust disaster recovery and business continuity plans. These plans should include financial contingencies, such as cyber insurance, to mitigate the impact of potential breaches and have a correct view of how the organization is prepared, existing gaps, investment to cover those and the timeframe associated. By taking a hands-on approach to incident response plans, CFOs can be more prepared to help their organizations navigate the outcome of a cyberattack with greater confidence and control.

Bridging the Gap Between Finance and Cybersecurity

As the role of the CFO continues to evolve, it is essential that financial leaders embrace their responsibilities in cybersecurity. This may require upskilling in cyber risk management, data privacy regulations, and the latest cybersecurity technologies. Additionally, CFOs should foster strong partnerships with IT teams, ensuring that cybersecurity is integrated into the organization’s financial and strategic planning.

In conclusion, the modern CFO is no longer just a guardian of the organization’s financial assets, they are also a critical defender of its digital assets, by working in conjunction with roles typically isolated as CISOs, CFOs can enhance their organization’s cyber defense capabilities, protect against financial losses, and ensure long-term business resilience, having the right awareness not just on the time of an incident, more in a proactive and preventive time.