Accounting
Rising Cyber Threats Drive CFOs to Prioritize Data Security and Privacy, Increasing Focus on FP&A and Gen AI
The survey also found that generative AI is now being employed by one in three finance organizations, with process automation and financial forecasting representing the most common uses of the technology.
Sep. 10, 2024
The pressure of new cybersecurity disclosure requirements and the rising threats of cyber warfare and extortion have pushed data security and privacy to the top of the priority list for finance leaders. The annual Global Finance Trends survey conducted by consulting firm Protiviti finds that 61% of CFOs and finance leaders rate data security and privacy as a high priority in the coming year, followed by financial planning and profitability analysis and strategic planning.
The finance function is increasingly feeding the demands of stakeholders hungry for non-financial, structured and unstructured data. Coupled with the growing need for sophisticated controls, accuracy assurance and compliance savvy to safeguard this data, there is a shift in the role of CFOs, to elevate their responsibilities for data governance and for ensuring appropriate investments are made in cybersecurity capabilities. The survey also found that generative AI is now being employed by one in three finance organizations, with process automation and financial forecasting representing the most common uses of the technology.
“In previous survey years, many would have raised their eyebrows at CFOs partnering with CISOs on security and privacy data concerns, as these would have fallen in the CISO’s purview,” said Christopher Wright, global leader of Protiviti’s Business Performance Improvement solution. “Now, new cybersecurity disclosure and reporting requirements, along with customers’ and vendors’ growing expectations for organizations to keep data private and secure, also require the CFO’s hands on the wheel to remain compliant and maintain high data governance standards.”
Generative AI Moves Forward in Finance
CFOs and other finance leaders are focused on advancing generative AI deployments that can support increasing revenue and improving profitability. The survey found that among those finance organizations employing generative AI (34% of all respondents), 58% have achieved meaningful and measurable progress in their cost optimization efforts. In addition, 44% of public organizations are employing generative AI in finance, whereas only 29% of private organizations are doing the same.
“Generative AI has immediate benefits for financial organizations, such as process automation and financial forecasting,” said Wright. “CFOs and finance leaders have been using AI tools to generate valuable returns in both budgeting, forecasting and cash flow management and cost optimization. The Finance Trends Survey points out that the finance functions are using AI to help process large data pools in efficient ways. This is especially crucial within a function that is so data heavy and for which it is imperative to process both structured and unstructured data.”
Financial Planning and Analysis (FP&A) is Second Highest Priority
Effective FP&A practices have become essential as companies continue to satisfy the mandate to drive value and optimize costs. Results indicate that 69% of finance leaders and professionals in public organizations consider financial planning and profitability analysis and reporting to be a top priority for the upcoming year.
A majority of CFOs and finance leaders (57%) report achieving meaningful, measurable progress in cost optimization in both technology rationalization and utilization of cloud-based systems.
ESG reporting also continues to be a priority for finance leaders, with 59% of publicly held organizations indicating a high level of preparedness for ESG reporting, compared with 47% of private organizations.
Top 10 Priorities
In the survey of over 950 global finance leaders, including CFOs, vice presidents, directors and managers, conducted online in the second and third quarters of 2024, participants ranked their priorities for the coming year. The results indicate the top 10 finance priorities are:
| 2024 Rank | 2023 Rank | |
| 1 | Security and privacy of data | 5 |
| 2 | Financial planning and profitability analysis and reporting | N/A |
| 3 | Strategic planning | 6 |
| 4 | Routine reporting and closing activities | 10 |
| 5 | Process improvement | 11 |
| 6 | Leadership (within your organization) | 23 |
| 7 | Enhanced data analytics | 7 |
| 8 | Cloud-based applications | 9 |
| 9 | ESG metrics and measurement | 1 |
| 10 | Changing demands and expectations of internal customers | 15 |