Getting the CFO to Buy in to Your Cyber Risk Management Program

Learn to speak in financial terms – and prepare to defend your results

by Wes Hendren

Have you ever felt the frustration of presenting heat maps and color-coded risk registers to your CFO, only to see their eyes glaze over? Despite the meticulous planning and technical precision, these tools often fail to resonate with financial executives who think in dollars and cents, not shades of red and amber. If you’ve spent months crafting an enterprise cybersecurity program only to see it defunded or downsized, you’re not alone. The disconnect often lies not in the importance of the initiative but in the language used to convey its value.

The Disconnect Between IT Technical Risk and Financial Impact

Chief Information Security Officers (CISOs) frequently grapple with the challenge of translating complex technical risks into business terms that the C-suite can grasp. A poignant example involves a CISO whose Identity and Access Management (IAM) program—a critical safeguard for the organization’s most valuable assets—was curtailed in flight due to budget constraints. The decision introduced a staggering $7.9 million risk exposure simply because the potential financial impact of not completing the rollout wasn’t effectively communicated up front. 

Turning Technical Jargon into Financial Insights

In a collaborative effort that took less than an hour leveraging the Safe Security platform and cyber risk analysis with FAIR (Factor Analysis of Information Risk), the security team developed a risk treatment plan that reframed technical vulnerabilities into financial risks. By quantifying the potential losses and demonstrating how a targeted investment could mitigate them, they made the conversation relevant to the CFO’s priorities.

An investment of $350,000 wasn’t just a line item in the IT budget; it was a strategic decision that reduced cyber risk by $5.3 million. This tangible ROI made the value proposition crystal clear, turning a previously abstract concept into a financially sound strategy.

Be Prepared to Defend Your Plan 

“Where did you get the numbers?” Expect your CFO to respond with a healthy dose of skepticism. 

Your first line of defense is the model you choose to quantify cyber risk in dollar terms. FAIR is the standard for cyber risk quantification, recognized by the National Institute of Standards and Technology Cybersecurity Framework (NIST CSF). 

Second, you need a defensible model for quantitatively assessing the impact of cybersecurity controls on your risk posture – to show, for instance, the downstream effect if IAM is on or off. “Can’t other controls pick up the slack?” a CFO might ask. Another member of the FAIR family, the Controls Analytics Model (FAIR-CAM) can answer those questions. 

Finally, to make your most persuasive answer to where the numbers come from, you ideally have worked with the CFO’s team to establish the cost factors specific to your organization for incident response, business interruption, etc. The FAIR Materiality Assessment Model (FAIR-MAM) is a great tool for that. 

The Power of Speaking the CFO’s Language

The key takeaway from this experience is the transformative impact of framing cybersecurity investments in terms of revenue protection and loss avoidance. When security teams articulate the ROI of their initiatives in financial metrics, they foster more productive dialogues with CFOs and other decision-makers. This approach not only streamlines the budget approval process but also ensures sustained support for essential security programs.

Strategies for Effective Cyber Risk Communication

• Quantify Cyber Risks in Financial Terms: Use risk assessment tools that translate technical risks into probable financial losses.
• Highlight ROI: Clearly outline how investments will reduce risk exposure and contribute to the organization’s bottom line.
• Align with Business Objectives: Connect security initiatives with the company’s strategic goals to demonstrate relevance.
• Simplify Technical Details: Focus on high-level implications rather than intricate technical explanations.
• Defend Your Results: Make your case based on standard models for cyber risk analysis and data from your organization.

Conclusion

Bridging the communication gap between security teams and financial executives is crucial for the successful implementation of cybersecurity initiatives. By presenting risks and solutions in financial terms, CISOs can secure the necessary buy-in from CFOs, ensuring that critical programs receive the funding and support they need.

Read the White Paper

Putting a Price on Risk: How to Prioritize Cybersecurity Budgets