The CFO’s role in cybersecurity risk management in the age of AI

CFOs are key players in cybersecurity, collaborating with CIOs and CISOs to tackle evolving threats and protect organizations.

CFOs are increasingly at the forefront of cybersecurity, working alongside CIOs and CISOs to protect their organisations in a complex threat landscape. This session, featuring Sunil Golecha, CFO for Asia Pacific & Japan at Palo Alto Networks, called attention to how the financial impact of cyberattacks now extends far beyond initial ransom costs. The case of United HealthCare, which faced a USD 22 million ransom and a subsequent USD 50 billion market cap drop, starkly illustrates the potential devastation.

The cyber threat landscape is evolving, with attackers using sophisticated tactics such as ‘ransomware as a service’ and AI-powered deepfakes. Targeted spear-phishing and whale-phishing attacks now focus on high-level decision-makers, heightening the risk. Despite a typical company deploying an average of 31 cybersecurity tools across 13 vendors, fragmented systems often fail to protect against these dynamic threats effectively.

‘Platformisation’ has emerged as a key strategy, suggesting a shift towards a unified cybersecurity platform that consolidates tools, improves efficiency and utilises AI for proactive response. CFOs must also focus on network security, cloud security and robust security operations, adopting zero-trust principles and AI-driven detection. Essential metrics like the median time to detect and respond are crucial in evaluating cybersecurity investments.

Moving forward, CFOs should ask themselves a few key questions: Is the Board fully aware of the cybersecurity strategy of the firm? What emerging risks lie ahead? And most importantly, how is the IT budget allocated to safeguard against these evolving threats? The future calls on CFOs to lead a shift from reactive measures to a proactive, strategy-led security culture.

This session took place on Day 2 of the IMA India’s Annual CFO Strategy Roundtable, held in Ashtamudi from 19th to 21st September 2024.