Managing Cybersecurity Risk in Finance: From Data Governance to Operational Resilience

There are few things that keep a modern CFO up at night more than the prospect of a cybersecurity breach. And for good reason. A single lapse can erode trust, disrupt operations, trigger regulatory scrutiny, and destroy shareholder value—all in a matter of hours. Yet for many finance organizations, cybersecurity still feels like a technical issue, something best left to the CISO or the IT function. That thinking is outdated, and in the current environment, it is dangerous.

Cybersecurity is no longer just an infrastructure concern. It is a financial risk, a compliance risk, a reputational risk, and ultimately, a strategic one. And because of that, it is a CFO issue. Finance owns the integrity of the numbers. Finance owns the systems that feed earnings, cash flow, tax, and treasury. And finance is increasingly the custodian of sensitive data—employee compensation, customer contracts, banking credentials, and more. If we expect to protect value, we must begin by protecting the systems and data that underpin it.

The good news is that we already have the mindset for it. As CFOs, we understand controls. We know what it means to balance risk and return. And we are trained to ask hard questions about exposure, mitigation, and resilience. What we must do now is apply that same discipline to cybersecurity, not as a technical checklist, but as part of our operating model. We must lead from a position of informed oversight, engaging with data governance, scenario planning, control testing, and cross-functional alignment.

Let us begin with the foundation: data governance. Every finance function today runs on data, but few can confidently map where that data lives, who has access to it, and how it moves between systems. That is a problem. A weak data governance framework is the open door that cyber threats walk through. Finance leaders must establish clear ownership for data domains, define classification rules, and enforce access controls. Sensitive data should be segmented, encrypted, and monitored. Access should follow the principle of least privilege—employees only get what they need, no more.

This is not about building fences. It is about building clarity. If you cannot tell which finance users can download payroll files, who can approve wire transfers, or what system is the source of truth for revenue, then you are operating with risk by default. Governance gives us the blueprint for control. It enables finance to operate with confidence and transparency. And it gives us the starting point for building resilience.

Resilience is where cybersecurity shifts from prevention to preparation. In today’s environment, breaches are not a question of if but when. What matters is how quickly the organization detects, contains, and recovers from them. For finance, that means knowing which systems are mission-critical, what controls exist around them, and how long the business can function without them. The general ledger. The ERP. The treasury management system. The payroll processor. These are not optional in a crisis. They are essential.

Scenario planning, long a staple of financial modeling, now applies directly to cybersecurity. CFOs should work with IT to model cyber risk events—what happens if the ERP goes offline for 48 hours. How does the business respond if payment systems are compromised. What controls are in place to prevent a spoofed invoice from triggering a fraudulent wire transfer. These scenarios are not theoretical. They are becoming commonplace. And they must be part of finance’s planning cadence.

One of the most underappreciated risks is third-party exposure. The finance function today relies on a complex ecosystem of SaaS platforms, cloud services, and outsourced providers. Every one of these introduces risk. A payroll vendor with weak authentication. A financial close tool with poor data encryption. A banking partner that lacks multi-factor controls. It only takes one link in the chain to be compromised for the entire system to be vulnerable.

CFOs must ensure that third-party risk is assessed regularly. This means due diligence before onboarding vendors, but also continuous monitoring after the fact. Contracts should include security obligations, breach notification clauses, and audit rights. Vendors handling sensitive data should provide SOC reports and demonstrate adherence to industry standards like ISO 27001 or NIST. And finance leaders must work with procurement and IT to establish a consistent framework for evaluating and managing vendor risk across the enterprise.

The same level of attention must be applied internally. Finance teams must be trained not just on accounting standards but on cyber hygiene. Phishing attacks often target finance employees directly—posing as suppliers, executives, or even regulators. These attacks are more sophisticated than ever. And a single click can cause cascading damage. Regular training, simulated phishing tests, and clear escalation protocols are not optional. They are essential.

This is also where tone at the top matters. If CFOs treat cybersecurity as someone else’s problem, the finance team will do the same. But if the finance leadership models good behavior, asks smart questions in leadership meetings, and actively participates in cyber risk reviews, it sends a clear signal. It says that protecting the financial foundation of the business is everyone’s job. And that security is not an add-on. It is a core competency.

Finance systems themselves must be designed with controls in mind. Role-based access. Dual approvals. Audit logs. Encryption at rest and in transit. These are not just IT best practices. They are finance imperatives. CFOs must work with their teams and with IT to ensure that the architecture of the finance function—both systems and workflows—reflects a commitment to secure operations. This includes enforcing segregation of duties, monitoring user activity, and regularly reviewing access rights, especially during reorganizations or M&A events.

Cyber insurance also enters the equation. While not a substitute for good governance, insurance can be an effective backstop. CFOs should ensure that policies cover financial systems, data breaches, and operational downtime. Just as importantly, they should understand the exclusions, the limits, and the claims process. A cyber policy that cannot be executed quickly in a crisis is not worth much. Finance leaders must evaluate cyber coverage the same way they evaluate other financial instruments—with a focus on risk-adjusted protection.

Now let us talk about business continuity. The best organizations assume that some level of disruption will occur and prepare accordingly. Finance teams should have documented playbooks for cyber events. Who takes over if the controller is locked out. How does treasury manage payments if the system is down. Where are offline backups stored and how quickly can they be restored. These are not speculative questions. They are practical ones. And every hour of delay during an incident compounds the damage.

Boards are now asking sharper questions. Regulators are increasing scrutiny. And stakeholders are demanding proof of resilience. The finance function must be ready to answer. Not just with IT jargon, but with operational clarity. What controls are in place. How often are they tested. What happens if they fail. Who is accountable. CFOs must be able to speak to these issues with the same fluency they use to explain a balance sheet or a forecast. Because in a cyber event, the financial implications are real.

In closing, cybersecurity is not a technical issue that sits outside the purview of finance. It is a systemic risk that touches every part of the finance operating model. From data governance to process integrity to resilience planning, the CFO plays a central role in protecting the enterprise. The role is not just to close the books. It is to keep them secure. To ensure that the financial machinery of the business continues to run, even when the unexpected happens.

The job of the CFO has always been about managing risk, ensuring reliability, and building trust. Cybersecurity is simply the newest frontier for applying those timeless principles. And in a world where digital threats are growing faster than budgets, clarity, preparation, and discipline will be our most valuable assets.