Cyber Security Risks and Planning Generally Not Part of Broader Corporate Strategy Yet

CFOs seem to be in agreement when it comes to prioritizing cyber security risks, with most executives able to pinpoint the most critical assets and systems in need of protection. A new survey from technology consulting firm Tatum shows that confusion sets in at the executive level when it comes to understanding the inherent responsibilities associated with cyber security across the board.

According to Tatum’s second quarter Survey of Business Conditions, nearly 40 percent of CFOs disagreed that their organization’s frontline personnel are trained to understand the value of the data and information assets they come in contact with on a daily basis. Nearly half of those same executives agreed that cyber security is not managed like a distributed enterprise risk necessitating an integrated strategy. That points to a lack of risk analysis and leaves significant room for improvement when it comes to evaluating cyber and other technology security risks within the broader scheme of corporate strategy and decision making.

“A large number of CFOs acknowledging that companies could be mitigating the dangers of increasing cyber security risks more effectively – highlights the need for greater strategy around this growing concern,” said Suzanne Donner, managing partner, knowledge management for Tatum.

Around 55 percent of the CFOs surveyed by Tatum indicated that CEOs and other senior leaders hold an active role in cyber security strategy and decisions, but an alarming 44 percent of senior leaders are not involved in those important roles.

The findings point to a larger and more widespread trend in the technology sector in which IT departments are often “siloed” and not considered part of overall corporate strategy. CIOs are continuously struggling to rationalize technology expenditures within broader corporate budgets and spending without full understanding or acceptance from other C-level executives and decision makers.

As cyber security becomes a greater liability and budgetary risk to organizations of all sizes, the role of IT departments stands to be elevated and technology and IT planning will become a greater part of overall company planning and strategy at the executive level.