This shift is driven by several factors:  

• Financial impact of cyber threats:
  The average cost of a data breach reached $4.45 million in 2023, marking a 15% increase over three years.  

• Regulatory compliance:
  New regulations require detailed financial disclosures related to cybersecurity, making it imperative for CFOs to be involved. 
• Investor expectations:
  Stakeholders demand transparency and assurance that companies are proactively managing cyber risks.

Key Cybersecurity Threats CFOs Should Monitor 

Understanding the landscape of cyber threats is crucial for effective oversight.
Here are some of the top concerns: 

• Ransomware:
  These attacks encrypt company data, with attackers demanding payment for decryption. Ransomware continues to be a major concern for organisations, as cybercriminals find new and more effective ways to break into systems and force victims to pay up or face consequences such as the exposure of sensitive data.  

• Supply chain attacks:
  Cybercriminals target third-party vendors to gain access to primary companies. The supply chain security market was valued at $2.1 billion in 2023 and is estimated to expand at a compound annual growth rate of about 10% between 2024 and 2032.  

• Business Email Compromise (BEC):
  Attackers impersonate executives or vendors to trick employees into transferring funds or revealing confidential information. BEC is a type of phishing attack. Other phishing scams try to trick recipients into revealing passwords, providing credit card numbers, or clicking on malware links.  

Strategies for CFOs to Mitigate Cyber Risks 

To navigate the complexities of cybersecurity, CFOs can implement the following strategies: 

• Collaborate with IT and Security teams:
  Regular communication ensures alignment on risk assessments and mitigation strategies. 

• Invest in advanced security measures:
  Allocating resources to state-of-the-art cybersecurity solutions can prevent potential breaches. 

• Develop a response plan:
  Having a well-defined incident response plan minimises damage and expedites recovery in the event of a breach. 
• Continuous education:
  Staying informed about emerging threats and evolving best practices is essential.