Security assessments may not be well-known outside the security world, but they are very important, as they use data that reflect a company’s security posture and level to assess the risk a company faces in the cybersecurity. Security assessments also provide valuable insights and identify any vulnerabilities in their supplier ecosystems. Especially in this time when most employees are resorting to remote work, ensuring a stable and secure posture across the entire corporate network is of paramount importance. Businesses with a higher security score are at less risk in the cybersecurity sector, which strengthens their business value and helps them earn the trust of their investors, consumers and partners. Conversely, a low security score indicates that there are issues with a company's to protect critical business assets, which can have a negative impact on the company's reputation and financial performance.
As CFOs begin to play an increasingly active and important role in managing enterprise cybersecurity, they must consider the value and importance of security assessments, as well as the financial impact they can have.
In a traditional corporate structure, cybersecurity is a domain managed by CISOs, security executives and their teams. With the average global cost of a data breach reaching nearly $4 million in 2019, it’s no surprise that CFOs are increasingly concerned about the practices implemented in their businesses.
As businesses realize the significant costs of breaches , CFOs are challenged to understand and assess the financial impact that inadequate cybersecurity can have.
Therefore, it is useful to mention the 4 key aspects of a company's security posture that can be taken into account by platforms , helping CFOs ensure cybersecurity and financial security for both the company's partners and customers.
Ensuring regulatory compliance
Financially, non-compliance can lead to penalties and fines, while news of non-compliance can impact business relationships. Security assessment platforms can help businesses demonstrate that their security practices are sound and effective, thereby building trust in your business partnerships.
Audit and monitor third-party and fourth-party vendors
Most organizations outsource critical business services, such as human resources (HR), billing, customer relationship management (CRM), and enterprise resource planning (ERP). These services can complicate a vendor’s risk management process, as each third-party vendor can also outsource tasks to others. Security assessment platforms collect publicly available information and can thus show any risks across the entire vendor ecosystem. This way, CISOs and CFOs can be confident that third-party and fourth-party vendors will not compromise critical data.
Strengthening Cybersecurity with Fewer Resources
The cybersecurity skills gap has presented a challenge for businesses in recruiting and training effective security staff, leaving security teams with fewer resources to get the job done. Security assessment platforms provide a single dashboard for monitoring and prioritizing cyber risk, allowing businesses to protect their ecosystems more effectively. With a security assessment platform, businesses can identify risks in real time, without the need for additional staff to manually monitor, audit, record, and remediate vulnerabilities.
The Business Value of High Security Ratings
Due to the serious risks that data breaches pose to businesses, CFOs play a significant role in overseeing cybersecurity management. In addition, they are beginning to realize that a high security rating can help increase stock valuations and improve relationships with underwriters, customers, and prospective investors. Through a high security rating, businesses can demonstrate regulatory compliance and vendor due diligence, thereby demonstrating a good attitude toward cybersecurity. In turn, stakeholders, partners, consumers, and investors are more likely to trust the company’s executive team and management practices. These assessments also help build trust between partnerships, as well as improve business efforts, which in turn can lead to significant return on investment (ROI).
In conclusion, a comprehensive and well-structured program can also ensure financial prosperity for a business. Businesses that invest in cybersecurity and earn high scores in security assessments will hold a stronger position in the market from a security perspective, but also from an overall business perspective. Finally, more secure businesses will be more able to gain strong partnerships, improve customer relationships and attract high-value investors. All of these parameters will contribute to strengthening the financial security of a business.
