Financial institutions are making big investments in digital technologies like artificial intelligence (AI) and cloud computing — capitalising on their potential to improve efficiency and streamline processes. But the benefits of tech investments won’t matter if data becomes susceptible to breaches or if organisations don’t have the talent to manage new systems.
Cyber risks and staff capability weaknesses can’t be ignored, according to a recent McKinsey & Company report, The cyber tock is clicking: Derisking emerging technologies in financial services, and leaders have to act now to guard their institutions.
Appropriate resources, tools, controls, and staff allow financial institutions to safeguard their data, intellectual property, and reputation — and management accountants can be proactive in this development.
New tech brings risks and weaknesses
Cyberattacks and data breaches are the most common risks associated with new digital technologies, and instances are still increasing, according to the McKinsey report.
Generative AI, when used to make images, text, or audio, raises questions concerning fairness, bias, data ownership, and governance. Misuse of AI is of growing concern, too.
As more tech tools are adopted, organisations in the public and private sector aren’t tracking or understanding the full picture of emerging risks, nor do they always have properly trained staff to handle the new responsibilities. Both are key: Insightful metrics and reports display the health of an organisation’s security capabilities, and trained employees decrease an already widening skills gap.
There are four questions to consider regarding new technologies when you work with your IT departments and finance leaders:
Are our technology investments aligned with our current security resources?
Are we investing in technologies and cybersecurity capabilities aligned with our organisational needs?
Do our current reporting capabilities enable us to accurately measure and report our potential risks?
Is our current staff sufficient in meeting our cybersecurity priorities or has a skills gap emerged?
Management accountants close capability gaps
Risks and weaknesses will vary based on the technology adopted, but it is beneficial for organisations to be proactive now. A tech-savvy management accountant could close capability gaps.
As a management accountant, your reporting experience can help your organisation track time spent responding to incidents, measure bias, and scope the severity of vulnerabilities. Digital assets are vulnerable to hacking, phishing, fraud, and counterfeiting; one of your roles as a management accountant will be to closely monitor and track digital asset transactions.
Digital skills are embedded into the Chartered Global Management Accountant® (CGMA®) designation from the Chartered Institute of Management Accountants® (CIMA®). CGMA candidates will explore the current cybersecurity landscape, develop strategic management skills, delve into the nuances of financial reporting, understand digital costing techniques, and much more.
You can identify risks, review cybersecurity processes, develop protocols, and evaluate cyber risk reporting frameworks — whilst working in tandem with your organisation’s IT department.
Trust architecture, Web3, and other tech require robust capabilities
AI, machine learning, and cloud computing are popular technologies that financial institutions will continue to invest in. But your organisation may want to expand further and invest in trust architecture to help manage client data or in Web3, a decentralised internet built on blockchains.
Whatever technology your organisation chooses, leaders need a clear understanding of the associated risks, including misconfigurations, data privacy breaches, and data loss. Organisations across all sectors need to assess their current cybersecurity capabilities and create a solid cybersecurity foundation. Being proactive now ensures you and your organisation can fully enjoy the benefits of digital technologies.
You can better position yourself as a digital expert and solidify your organisation’s digital future by pursuing the CGMA designation.
Kick-start your digital development and see how the CGMA designation is essential to navigating this tech-driven world.
