The hidden cyber risks of siloed financial data
CFOs and finance teams are increasingly exposed to cybersecurity threats, often due to how their sensitive financial data is managed. This data is frequently dispersed across various systems—stored in local databases, hard drives, or exported into spreadsheets and shared via email. Each time data is transferred, the risk of a security breach grows. In fact, data compromises increased by 68% in 2021, according to the Identity Theft Resource Center.
The financial costs of these breaches are rising as well. IBM/Ponemon’s 2021 report found that the average cost of a data breach is now £3.6 million—a 10% increase from the previous year. This highlights the importance for leadership teams to take stronger measures to protect financial data. According to Foundry’s 2021 Digital Business study, over a third of business and IT leaders cited security improvements as a top strategic priority, and 58% reported that security had gained greater importance, particularly as remote working became more widespread during the pandemic.
Risks from Manual Processes
Many businesses, however, still rely on outdated, manual processes to manage financial data, which is where numerous security and compliance risks arise. Financial data is frequently exported into spreadsheets, emailed, or shared through platforms that lack adequate security controls, leaving organisations vulnerable to errors and breaches.
These manual processes can lead to sensitive information being shared with individuals who should not have access, or transmitted through unsecured channels that do not comply with regulatory requirements. In some cases, financial data is even shared with third parties such as vendors or contractors, which takes it beyond the company’s direct control. “Each time financial data changes hands, it becomes difficult to monitor who is accessing or modifying it,” notes Scott Freedman, Director of Marketing for Sage Intacct.
The Security of Cloud Technology
A secure, cloud-native platform like Sage Intacct offers a robust solution to mitigate these risks. Cloud-native systems are designed with strong security protocols, ensuring compliance and access controls are in place to protect sensitive financial information.
By centralising all financial data in a cloud-based system, organisations can establish a single source of truth. This allows finance teams to control access, granting each user permission to view only the information relevant to their role through customised dashboards. This approach not only enhances security but also improves operational efficiency.
However, not all cloud platforms provide the same level of protection. It is essential to evaluate whether a cloud-based solution meets the organisation’s specific security needs. Some key factors to consider include:
- Audit and Compliance Controls: Does the platform support audits to ensure compliance with industry standards such as SOC 1, SOC 2, PCI-DSS, HIPAA, and GDPR?
- Security Incident Response: Can the platform respond swiftly to unauthorised access? Does it provide visibility into data activity through logging?
- Data Loss Prevention: Does the platform have the capability to detect and prevent data loss across internal systems such as email and collaboration tools?
- Monitoring and Penetration Testing: Does the provider regularly monitor its systems and conduct tests to identify vulnerabilities?
- Network Security: Are essential security measures such as firewalls and antivirus software in place? Does the platform remove unnecessary features that could create security gaps?
- Business Continuity and Disaster Recovery: What procedures does the provider have to securely back up and recover data in the event of a disaster? How does the platform ensure data integrity during transfers?
Why Cloud-Native Platforms Offer Stronger Protection
Transitioning to a cloud-native platform like Sage Intacct can significantly enhance data security and help meet compliance obligations. With centralised control over access and robust monitoring capabilities, finance teams can manage sensitive information more securely and efficiently.
At Mysoft, we understand the cybersecurity challenges faced by finance professionals. As experts in Sage Intacct, we are here to support businesses as they move from outdated and risky processes to secure, cloud-based solutions. Our deep knowledge of Sage Intacct allows us to guide you through this transition, ensuring that your financial data is well protected.
