Key Takeaways:
- Finance teams must ask the right cybersecurity questions to better understand and protect financial systems and sensitive data.
- Third-party risks and compliance gaps can expose organizations to significant financial and reputational damage.
- A collaborative approach between finance, IT, and risk management teams ensures holistic protection of digital and financial assets.
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Cyber risk is no longer just an IT issue — it’s a business imperative. Your finance team plays a critical role in protecting sensitive data, maintaining business continuity, and ensuring regulatory compliance. If your organization is not involving finance leaders in cybersecurity conversations, you may be overlooking key vulnerabilities that can lead to financial losses, regulatory penalties, or reputational harm.
Use these five questions to evaluate how well your finance function is contributing to cybersecurity readiness across your organization:
1. “Do we know what our most critical financial data assets are, where are they located, and how are we protecting them?”
Your accounting platforms, enterprise resource planning (ERP) systems, payroll data, and vendor payments are prime targets for attackers. These systems hold sensitive financial and personal data, making them a gateway to significant monetary gain for attackers. Without strong access controls, you risk fraud, data breaches, and financial disruption.
Ask:
- Are we using multi-factor authentication and role-based access?
- Do we monitor high-risk transactions and user behavior?
- How often do we audit access to financial systems?
2. “Are we factoring cyber risk into our financial strategy and are our people empowered to be part of the solution?”
Cyber incidents do not just disrupt IT — they can cause operational downtime, delay in critical financial reporting, or even impact your bottom line. From missed regulatory deadlines to costly recovery efforts, the financial implications are significant. That’s why finance must treat cybersecurity as a core business risk requiring strategic investment.
Ask:
- Do we model the financial impact of a data breach?
- Are cyber risks reflected in our insurance coverage and forecasting?
- Is cybersecurity investment aligned with our growth plans?
- Are our employees, including senior executives, receiving regular and mandatory security awareness training?
3. “How do we vet and monitor the security practices of our third-party vendors and partners?”
Outsourced services like payroll, benefits, or accounting introduce significant third-party risks. If a vendor experiences a breach, your organization could still face legal liability. Effective vendor risk management requires rigorous due diligence, strong contractual safeguards, and continuous monitoring to ensure third-party partners uphold the same security standards as your own organization.
Ask:
- Have we assessed vendor cybersecurity controls and certifications?
- Do our contracts include data protection and breach response terms?
- Are we tracking compliance with state, federal, and international laws?
4. “Do we have a documented and regularly tested incident response plan specific to financial systems?”
A cyber event can disrupt critical financial functions — delaying tax filings, impacting payroll, or interrupting operations. Finance leaders should play an active role in the incident response process since they oversee the systems and data most vulnerable to financial fraud and reporting errors. Their involvement enables your organization to quickly restore financial operations, prioritize critical transactions, and minimize financial exposure.
Ask:
- Do we take part in business continuity planning and tabletop exercises?
- What is our role in ensuring financial integrity during an incident?
- Are we prepared to handle regulatory reporting or legal claims?
5. “Are we compliant with industry-specific regulations and standards, and what are the potential costs of non-compliance?”
Frameworks provide a structured way to evaluate your organization’s security posture and demonstrate readiness for audits. For finance teams, they also offer assurance that evolving compliance requirements are being met, reducing regulatory risk and strengthening overall governance at your organization.
Ask:
- Have we mapped our controls to a framework like National Institute of Standards and Technology (NIST), System and Organization Controls (SOC), or International Organization for Standardization (ISO)?
- Are our internal policies documented and regularly reviewed?
- Do we know where finance-specific risks fall within these frameworks?
- How are finance-related cybersecurity risks escalated to enterprise risk management?
How MGO Supports Cybersecurity for Finance Teams
Cybersecurity affects every part of your business, especially your financial operations. MGO helps middle-market organizations assess security posture, align cybersecurity with financial strategy, establish IT risk management processes, and prepare for audits and regulatory requirements.
Whether you’re improving internal controls or building a response plan, our advisory teams are here to help. Ready to strengthen your financial data security? Contact MGO to schedule a cybersecurity risk and finance readiness assessment for your business.