When most organizations think about cyber risk assessments, their focus often leans heavily on IT departments and cybersecurity teams. However, one of the most overlooked, yet critical, departments in these assessments is accounting. Given the sensitive financial data that accounting departments handle daily, they represent a key target for cybercriminals. Here’s why including the accounting department in your cyber risk assessment is essential for your organization’s overall security.
The accounting department manages vast amounts of sensitive financial data—everything from payroll information and accounts payable to tax documents and financial statements. This data, if accessed or stolen, can cause significant financial losses and reputational damage. A comprehensive cyber risk assessment helps ensure that accounting systems and processes are secure and protected against threats like phishing, malware, or ransomware.
Business email compromise is a common threat to accounting departments. Cybercriminals often target finance teams through sophisticated phishing schemes that trick employees into making fraudulent payments or revealing sensitive information. A cyber risk assessment can identify potential weaknesses in email security protocols and recommend training to help staff recognize suspicious emails and avoid these costly scams.
Many industries are subject to stringent data protection and financial regulations, such as GDPR, SOX (Sarbanes-Oxley), or PCI DSS (Payment Card Industry Data Security Standard). Accounting teams are responsible for maintaining compliance with these regulations, which often require strict cybersecurity measures. Including the accounting department in a cyber risk assessment ensures compliance-related risks are addressed, avoiding hefty fines and legal repercussions.
Accounting departments often work with third-party vendors for tasks like payroll processing, tax filing, or auditing. Each vendor represents a potential point of vulnerability if their security measures are not up to par. A thorough cyber risk assessment can help identify risks in third-party vendor relationships and ensure that appropriate controls, such as vendor risk assessments or contracts with cybersecurity clauses, are in place.
Ransomware attacks are on the rise, with accounting departments often targeted because of the valuable financial data they possess. Once an accounting system is compromised, it can be difficult, costly, and time-consuming to restore. By assessing the risks in the accounting department’s systems, organizations can implement stronger backup and recovery solutions, along with proactive measures to prevent ransomware attacks.
In addition to external cyber threats, the accounting department faces the risk of insider threats—whether malicious or accidental. Employees with access to sensitive financial data could intentionally or unintentionally cause a data breach. Cyber risk assessments can include a review of access controls, ensuring that only authorized individuals can access specific data, and logging activity for future audits.
Most accounting departments rely on specialized software to handle their daily tasks. Whether it's enterprise resource planning (ERP) systems, accounting software, or cloud-based financial tools, these systems need to be evaluated for vulnerabilities. A cyber risk assessment will identify any outdated software, lack of encryption, or other gaps in cybersecurity that could put financial data at risk.
Including the accounting department in your cyber risk assessment fosters a culture of cybersecurity awareness across departments. When accounting personnel understand the potential cyber threats they face, they are more likely to follow best practices, such as strong password management, regular software updates, and phishing training. This collaboration strengthens your organization's overall cybersecurity posture.
The accounting department is a vital part of any organization’s operations, making it an attractive target for cybercriminals. By including the accounting team in cyber risk assessments, you help safeguard sensitive financial data, protect against costly cyberattacks, and ensure regulatory compliance. It’s time to stop viewing cybersecurity as solely the responsibility of the IT department and start including all departments, especially those handling the most sensitive information—like accounting.