The C-suite drives business strategy and shapes a company’s future. Communication and alignment between key players are paramount, yet silos still persist particularly between two crucial roles: the Chief Financial Officer (CFO) and the Chief Information Officer (CIO).
As the guardians of financial performance, CFOs prioritise the company’s bottom line above all else. Meanwhile, CIOs are entrusted with the responsibility of achieving technological objectives to enhance operational efficiency and conveying the intricacies of digital security to the board. Historically, these two executive positions have worked side by side with minimal interaction.
However, the current business landscape necessitates a shift towards collaboration. As threats to corporate assets escalate and attack methods grow increasingly sophisticated, CIOs require advanced tools and technologies to keep pace. Yet, this demands support from the entire organisation. The challenge arises when the CFO and other board members lack awareness of the magnitude of risk, potentially leading to discord.
Shifting perceptions of cybersecurity from cost burden to strategic enabler
Traditionally, the CFO has perceived the CIO as a cost centre rather than a revenue generator. CIOs often have substantial technology budgets that can be seen as a drain on resources that could be allocated elsewhere. Consequently, CFOs have often been sceptical when CIOs request additional technology investments, especially when previous investments might not have fully resolved the problems they were meant to address.
The crux of the issue lies in the lack of effective communication between the two roles. CIOs have struggled to articulate the business case for investing in IT security infrastructure in terms that resonate with their financial counterparts. In the face of declining or stagnant budgets, it is more critical than ever for CIOs to clearly communicate the value and necessity of their technology investments to secure support of the CFO and the board.
Conversely, CFOs have historically viewed cybersecurity as an operational concern rather than a strategic imperative. They may not fully comprehend how vulnerabilities in the company’s digital assets could lead to financial losses, intellectual property theft, or erosion of customer trust. There is often an underlying assumption that “it won’t happen to us” until a breach occurs.
However, this perception is evolving. There is a growing recognition that digital security is an enabler and an investment that delivers genuine business value, even if its benefits are not immediately apparent on a daily basis.
In the wake of a cyberattack, not only is there a significant cost associated with investing in recovery technology, but there is also the potential impact on the brand to consider, which ultimately affects the overall financial control of the organisation.
To mitigate these risks, the CIO should be responsible for developing and executing a comprehensive IT strategy that encompasses both defensive measures, such as cybersecurity, and revenue-generating areas, including the company’s website and e-commerce platforms. Although the CISO may have a direct line to the board, they will typically report to the CIO on a daily basis to ensure seamless coordination and implementation of the organisation’s technology initiatives.
The more a company invests in the CIO upfront, the less the financial impact will be in the long run. Automation is a significant driver of improved efficiencies; removing manual processes helps increase engagement across teams using shared digital platforms rather than manual spreadsheets and data. The more automation the CIO can apply, the more effective they will be, and from the CFO’s perspective, the more the business can get out of every single individual.
Investing in the CIO saves money in the long term – while there may be an upfront cost, this is greatly outweighed by the savings over time.
Harnessing the power of real-time analytics
To secure complete business buy-in, CIOs must be able to effectively communicate the company’s digital health to the board in a manner that is easily comprehensible. However, before they can achieve this, CIOs require comprehensive visibility of the entire digital infrastructure.
The challenge lies in the fact that businesses often have a complex web of disparate tools, legacy systems, and a combination of cloud and on-premises solutions that have long hindered the ability to obtain a clear view of an organisation’s operational resilience.
The traditional approach to managing business tech stacks is outdated. Companies may invest in numerous products, but they often operate in isolation, failing to communicate with each other in a meaningful way. It is crucial to understand how firewalls relate to network systems, as this level of intelligence, gained through continuous monitoring, is essential to a comprehensive security strategy.
Many regulatory compliance frameworks are incorporating the need for continuous monitoring to provide businesses with real-time data on their security posture. However, companies must elevate their security strategy beyond mere regulatory compliance; if they are investing in technology, it is essential to maximise its potential.
Continuous Controls Monitoring (CCM) emerges as a powerful solution to address this need. By seamlessly integrating with various systems and tools across the IT ecosystem, CCM offers a unified view of an organisation’s digital health. It breaks down silos and enables real-time analytics that empower both the CIO and CFO to make informed decisions.
Real-time analytics provided by these tools ensures that the information is always up-to-date and never obsolete. With real-time analytics, powered by automation, the interests of the CFO and CIO align, fostering a collaborative approach to cybersecurity.
Fostering collaboration
To optimise a company’s overall strategic objectives, it is crucial for CIOs and CFOs to break down the silos that have traditionally separated them. By developing a deep understanding of each other’s distinct goals and priorities, they can work together to maximise the achievement of the organisation’s strategic aims.
There is a significant opportunity for CIOs and CFOs to forge a close partnership, aligning technology investments with financial objectives, mitigating risks, enhancing decision-making processes and boosting overall operational efficiency. Although they play different roles within the organisation, CIOs and CFOs are ultimately part of the same team, working towards a common purpose.
About the Author
Martin Greenfield is the CEO of Continuous Controls Monitoring (CCM) provider, Quod Orbis. Martin has over two decades of experience in the cyber security space. With his team, Martin helps deliver complete cyber controls visibility for clients via a single pane of glass through Quod Orbis’ CCM platform. This helps companies see and understand their security and risk posture in real time, which in turn drives their risk investment decisions at the enterprise level. Martin can be reached online via LinkedIn and at our company website https://www.quodorbis.com/