The Finance Director’s Role in Cybersecurity and Managing Financial Risk

In today’s hyperconnected economy, financial leadership is no longer confined to managing budgets, forecasts, and compliance. As cyber threats become more sophisticated and financially damaging, the most successful Finance Directors (FDs) take a front-line role in cybersecurity risk management.

This convergence of finance and digital security reflects a broader shift in how risk is assessed, measured, and mitigated across UK businesses. We will examine the FD’s role in cybersecurity and managing financial risk in more detail.

Cybersecurity is a financial issue

Historically viewed as an IT problem, cybersecurity now ranks high on boardroom agendas. A successful cyberattack can trigger catastrophic financial consequences, ranging from ransomware payouts and business interruption to regulatory fines and reputational damage.

According to a 2024 UK Government Cyber Security Breaches Survey, around 50% of businesses reported experiencing an attack or security breach in the previous 12 months, with many incurring direct financial losses. Modern FDs know they must therefore treat cyber risk as a core component of the financial risk landscape, akin to FX exposure or credit defaults.

Bridging the gap between finance and IT

Finance Directors are uniquely positioned to act as a bridge between the boardroom and technical teams. While the Chief Information Officer (CIO) or Chief Information Security Officer (CISO) may lead on technology strategy, the FD must translate cyber risks into business impact by doing the following:

• Quantifying cyber risk in monetary terms for strategic planning.
• Assessing ROI on cybersecurity investments, ensuring funds are directed toward high-impact controls.
• Scenario planning for cyber incidents as part of broader financial stress testing.

This requires financial professionals to improve fluency in cyber risk language and collaborate closely with IT leaders.

Key responsibilities for finance directors

Considering the role FDs play in cybersecurity and managing financial risk, we will examine their key responsibilities in these areas.

Embed cyber risk into financial planning

Foresight is critical. Cyber incidents can disrupt revenue streams, inflate insurance premiums, and demand emergency capital reserves. Therefore, FDs recognise they should:

• Include cyber scenarios in annual budgeting and forecasting.
• Work with insurers to understand cyber policy coverage gaps.
• Evaluate the cost-benefit of proactive investments in cybersecurity infrastructure.

Ensure robust financial controls

Cyberattacks often exploit weaknesses in financial systems, especially through business email compromise (BEC) or fraudulent payment instructions. Therefore, today’s FDs take the following actions:

• Enforce multi-factor authentication and segregation of duties for financial approvals.
• Regularly audit payment systems and vendor account changes.
• Maintain strict access controls to accounting and treasury platforms.

Lead incident response planning

The financial implications of a cyberattack unfold rapidly. Therefore, the FD is a key player in incident response planning, focusing on:

• Liquidity access during operational downtime.
• Communications with regulators, shareholders, and insurers.
• Accurate valuation of financial damages for insurance claims and disclosure.

Promote a cyber-aware culture

Cybersecurity isn’t just about firewalls; it’s about people. FDs can champion awareness campaigns, ensure finance teams receive phishing training, and tie cybersecurity KPIs to leadership incentives.

In summary

In 2025 and beyond, cybersecurity is no longer a technical footnote; it’s a fundamental pillar of financial risk management. Top UK FDs are rising to this challenge by embedding cyber resilience into financial planning, governance, and culture. Those who succeed don’t just mitigate risks; they build long-term business value in an increasingly volatile digital world.