Experts estimate that cybercrime incidents will cost the United States $452 billion in 2024. The repercussions of a cyber attack can include data loss, profit losses, and reputational damage.
While preventing cybersecurity incidents is traditionally viewed as a responsibility of the chief information security officer (CISO), controllers must also proactively manage cyber risks within accounting operations.
In this guide, you will learn practical strategies for protecting financial integrity and compliance by leveraging your role as a controller.
Understanding Key Cyber Threats in Accounting
Cyber risks come in many forms, each presenting unique challenges for finance professionals. Here’s a look at three of the most prevalent and dangerous threats.
Phishing Attacks
Phishing attacks — where fraudulent emails or messages trick recipients into divulging sensitive information — are another common issue you must be aware of. Given the high volume of financial transactions and confidential information handled in accounting, these attacks can easily lead to data breaches or unauthorized transactions.
Network Intrusion
Network intrusion occurs when an unauthorized entity gains access to your system or network. The malevolent party’s goal is to steal or compromise data, which could include deploying ransomware or surreptitiously obtaining valuable files.
Ransomware
Ransomware attacks occur when malicious actors encrypt data and demand payment for its release. Imagine if a cybercriminal hijacked all of your organization’s financial data. All accounting operations would come to a halt, including payroll, invoicing, and financial reporting. The end result is costly operational delays and monetary losses.
Implementing Protective Measures to Safeguard Financial Data
As a controller, you must coordinate with your IT team, managed services provider, and CISO to implement security measures tailored to the unique needs of finance operations. You can work with IT to establish the following safeguards.
Access Controls
Access controls ensure that only authorized personnel have access to sensitive information. Collaborate with the IT department to establish role-based permissions, limiting access to high-risk data. Access control measures aim to ensure that each person has access to just enough data to carry out their assigned responsibilities.
Encryption
Encryption involves scrambling data using mathematical models to make the information unreadable to anyone who does not have the right key. Encrypting sensitive information ensures data cannot be easily read or used, even if someone intercepted it.
For optimal security, ensure that sensitive data is encrypted both while in transit and at rest.
In-transit encryption scrambles information before sending it to another authorized user. The information will be decoded when it reaches the designated recipient. Encryption at rest scrambles important files while they are being stored on your server or in the cloud.
Network Monitoring
Network monitoring is designed to detect and contain any threats that penetrate your systems. The sooner you can identify these threats, the better your odds of mitigating the damage.
How to Build a Cyber-Resilient Accounting Operation
To enhance security, you should aim to build a cyber-resilient operation. Cyber resilience goes beyond prevention — it’s about preparing for and minimizing the impact of cyber incidents when they do occur. This involves developing a cybersecurity plan that includes policies, procedures, and communication channels specific to accounting.
In addition to developing a cohesive plan and practical policies, you will need to perform several other tasks.
Offer Employee Training
Human error often represents the weakest link in cybersecurity. As the controller, you can organize regular training sessions for your finance staff. Focus on topics such as recognizing phishing attempts and creating strong passwords to reduce your organization’s susceptibility to an attack.
Collaborate with the IT department and CISO to stay updated on emerging cyber threats. Work with your company’s technology professionals to provide your team with regular refresher training. Complacency on the part of your team can undo all of your hard work.
Perform Risk Assessments
You’ll also need to conduct routine risk assessments to identify and address your department’s vulnerabilities. By evaluating current security measures and simulating potential breach scenarios, you can identify areas that need improvement and ensure your finance operations remain protected against emerging threats.
Collaborate With the CISO
Creating a cyber-resilient accounting operation requires close collaboration between you and the CISO. The two of you can ensure your accounting practices and strategies align with big-picture organizational goals and security objectives.
The Vital Role of Controllers in Cyber Risk Management
As a controller, you are in a prime position to implement cybersecurity measures that protect against financial threats. By understanding the evolving landscape of cyber threats and developing a cyber-resilient culture, you can safeguard your organization’s most sensitive financial information.
The journey to robust cyber risk management in accounting operations is ongoing. However, by incorporating the right strategies and a proactive approach, you can help build a secure, resilient financial operation that stands firm in the face of evolving cyber challenges.
