Page 128 - Cyber Defense eMagazine July 2024

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.

Cyber Defense eMagazine – July 2024 Edition 128
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