Key Takeaways:
- Finance teams play a critical role in driving enterprise resilience by protecting sensitive financial and personal data.
- Effective data security depends on close partnership between finance, IT, and compliance to meet evolving regulatory expectations.
- Framework-based governance helps finance leaders connect cybersecurity efforts with business value, audit readiness, and stakeholder trust.
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Financial data is a vital asset that shapes business strategy — and a growing target for cybercriminals. From payroll files to tax documents to bank account information, these records form the backbone of financial and operations strategy, supporting everything from routine tasks to long-term organizational planning. Financial data enables businesses to assess their financial health, identify growth opportunities, allocate resources effectively, and monitor progress against strategic goals.
Because this data drives core business functions and competitive positioning, protecting it through robust cybersecurity is essential to maintaining operational continuity and sustaining trust. Safeguarding financial data requires collaboration across finance, IT, and compliance teams to reduce risks such as fraud, data breaches, and regulatory penalties, ensuring that strategic decisions remain well-informed and secure.
As threats evolve, organizations must move beyond traditional IT-led cybersecurity models and incorporate a more integrated approach. Today, finance teams are increasingly expected to take an active role in protecting sensitive information, managing enterprise risk, and maintaining regulatory compliance — making cybersecurity a shared responsibility across departments.
Finance’s Strategic Role in Managing Cyber Risk
While finance is not traditionally associated with data security, its influence on internal control environments and investment decisions makes it an essential stakeholder. Finance functions often intersect with areas directly tied to risk:
- Internal audit teams assess whether financial systems and reporting controls align with trust and data integrity standards.
- Enterprise risk management analyzes the impact of cybersecurity risk alongside operational and financial exposures.
- Insurance planning requires an understanding of acceptable loss and whether current controls meet insurer expectations.
By participating in these risk-aligned discussions, finance leaders contribute to building a more resilient organization — one that is better equipped to evaluate cyber risks, impact, and controls.
The Challenge: Balancing Security with Business Priorities
According to Gartner, only 14% of security and risk leaders believe their organizations effectively balance data protection with business needs. That gap can lead to:
- Delays in financial reporting
- Legal and regulatory consequences
- Reputational harm
- Service disruptions during critical periods (such as tax season)
Sensitive information tied to clients, employees, or internal systems — if compromised — can trigger long-term consequences that extend well beyond the immediate breach. Such breaches can erode trust and trigger regulatory scrutiny, making proactive data protection a strategic imperative.
Navigating an Expanding Regulatory Landscape
Data privacy regulations are expanding across the U.S. and globally. While the U.S. lacks a comprehensive federal law, 20 states have enacted privacy statutes and expect to have such legislation effective by the end of 2025 — with more states considering similar laws for 2026 and beyond. Internationally, regulations such as the European Union’s General Data Protection Regulation (GDPR) create additional layers of complexity.
Your finance department must understand the compliance implications of:
- Third-party vendor agreements and data-sharing obligations
- Data localization and cross-border data transfer requirements
- Consent and lawful basis for data processing
- Sector-specific regulations or contractual clauses
Simply outsourcing a service does not transfer the associated compliance risk. Conducting proper due diligence is essential to ensure vendors take measures to meet regulatory standards and protect against potential liabilities.
Cross-Functional Data Security in Action
Securing financial data requires collaboration between finance, IT, legal, and operations. Successful organizations coordinate their efforts around key initiatives:
- Applying access controls such as multifactor authentication to sensitive systems
- Monitoring payment workflows for anomalies, especially in tax-related processes
- Reviewing system logs and internal activity reports to identify unusual behavior
- Participating in incident response simulations to improve readiness
- Partnering on automation and digital transformation initiatives to streamline workflows
- Aligning on shared performance and risk indicators to foster accountability across departments
In addition, your finance team should review data retention policies so that outdated or unnecessary records are securely disposed of — reducing legal, operational, and reputational exposure in the event of a breach.
Finance’s Influence on Compliance Culture
Your finance team can play a pivotal role in shaping your organization’s approach to compliance. Its deep involvement in regulatory reporting, audits, and internal governance makes it a natural champion for best practices to help embed compliance into everyday decision-making.
Practical steps include:
- Participating in regular cybersecurity awareness training
- Leading data lifecycle reviews to reduce risk from unnecessary record storage
- Supporting the design of internal controls that align with broader security goals
Even in the absence of a cyber incident, organizations are still obligated to meet regulatory standards — initiative-taking involvement can significantly reduce risk, improve operational readiness, and strengthen long-term resilience.
Frameworks That Support Data Protection Goals
Organizations can look at established cybersecurity frameworks to formalize their approach and evaluate effectiveness:
- System and Organization Controls (SOC) for Cybersecurity: A report outlining the structure and governance of a cybersecurity risk management program.
- National Institute of Standards and Technology (NIST) Cybersecurity Framework: A widely adopted model for identifying, protecting, detecting, responding to, and recovering from cyber threats.
- International Organization for Standardization (ISO)/International Electrotechnical Commission (IEC) 27000 Series: International standards for information security management and related technology-specific risks.
These frameworks offer objective, auditable criteria and are increasingly recognized by stakeholders, investors, and regulators.
Leveraging Third-Party Cybersecurity Experience
External advisors bring valuable insight and structure to the cybersecurity process — enhancing cybersecurity efforts by offering specialized knowledge, strategic guidance, and a structured approach to cybersecurity risk management. MGO’s consulting professionals support finance teams and their organizations by:
- Assessing current controls and identifying potential gaps
- Aligning internal processes with leading frameworks
- Developing practical, industry-aligned action plans
Customized support keeps cybersecurity strategies compliant and aligned with your organization’s specific operating model and risk profile.
How MGO Works with Finance Leaders to Strengthen Cybersecurity
We work alongside finance leaders to navigate the intersection of data protection, regulatory compliance, and enterprise risk. Our professionals provide tailored guidance to assess existing controls, align cybersecurity strategies with financial objectives, and implement frameworks such as SOC for Cybersecurity, NIST, and ISO/IEC standards.
Whether you need outsourced accounting, risk assessments, or cybersecurity readiness support, we can help your organization build resilience and protect the sensitive data that powers decision-making. From day-to-day operations to strategic transformation, our team delivers practical, industry-specific insights that keep your finance function at the center of a secure, compliant business environment.
Reach out to our team to strengthen your cybersecurity strategy today.
