Priya PatelTLDR:
- Cybersecurity breaches have become a costly risk for organizations in the digital age, with attacks resulting in financial loss and reputational damage.
- A survey found that 96% of C-suite leaders experienced at least one cybersecurity breach or incident in the prior year.
- Cyberthreats are becoming more sophisticated, requiring organizations to allocate more time and resources to mitigate the risk.
- Cybersecurity is not just an IT issue, but a concern for governing boards, audit committees, investors, customers, and suppliers.
- The CGMA Cybersecurity Tool provides guidance on minimizing the impact of cybersecurity attacks, including developing resilience, responding effectively to breaches, and handling ransomware attacks.
As the digital age continues to advance, the risk of cybersecurity breaches has become a costly reality for organizations. The loss of personal data in cyberattacks can result in expensive litigation and significant reputational damage. According to a survey by Palo Alto Networks, 96% of C-suite leaders experienced at least one cybersecurity breach or incident in the prior year, with 33% reporting operational disruptions as a result. This increase in cyberthreats, often perpetrated by organized criminal groups and state-backed actors, has led organizations to allocate more time and resources to mitigate the risk.
It is important to recognize that cybersecurity is not just an issue for IT departments; it is a concern for governing boards, audit committees, investors, customers, and suppliers throughout the enterprise value chain. Stakeholders are increasingly concerned about the potential impact of cybersecurity breaches on financial and reputational aspects of organizations. Therefore, finance professionals need to familiarize themselves with the potential threats and mitigations to be put in place.
To assist in this task, the AICPA & CIMA have developed the CGMA Cybersecurity Tool: Risk, Response, and Remediation Strategies. This tool provides guidance on building cyber-resilience, responding quickly and effectively to cyberattacks, and determining necessary steps in the event of a ransomware attack. It is essential for organizations to proactively prepare and implement cybersecurity strategies and not be caught off-guard by cyberattacks in the digital age.
