Corporate finance departments handle sensitive information related to the finances of a business, including budgets, profit and loss (P&L) statements, bank records, cash flow reports, sales forecasts, investments, payroll data, bonus and compensation plans, and much more. Corporate finance professionals like controllers, financial planning and analysis (FP&A) managers, payroll administrators, and others must manage their financial activities securely as this information is typically considered confidential.

Corporate finance departments can leverage several cybersecurity technologies and data privacy processes to protect the sensitive information they process, send, and receive. These technologies include identity and access management (IAM), multi-factor authentication (MFA), data loss prevention (DLP), data encryption, and much more. Data privacy processes include access controls that enable organizations to grant, limit, and restrict access to confidential financial information, internal audits, and regular cybersecurity training.

Corporate finance professionals can securely share the confidential financial information they process, store, and share with external third parties by using encrypted enterprise content management systems and communications platforms. These applications allow corporate finance professionals to securely store, send, and receive contracts, spreadsheets, and other financial content. Corporate finance departments should ensure all financial content is, at bare minimum, password protected and encrypted in transit and at rest. Additionally, corporate finance professionals should ensure that the third parties they work with, like payroll administrators, accounting firms, and other partners, use best-in-class cybersecurity technologies and practice data security best practices. Oftentimes, organizations will contractually bind their partners to maintain the privacy of the confidential data as a part of a vendor risk management program.

Data privacy and security risks associated with corporate finance processes are a major concern. There is a potential for budgets, sales forecasts, bank account information, and other confidential financial data to be intercepted, manipulated, held for ransom, or sold on the dark web. All of these potential outcomes can lead to financial losses, litigation, and reputational damage. Also, the sheer amount of financial data involved in corporate finance processes creates a huge challenge in protecting and controlling access of this data. Organizations, as a result, need to ensure that their financial data is securely stored and only accessed by those with the proper authorization.

Compliance regulations require corporate finance departments to not only follow accounting standards such as GAAP, but also be transparent in their financial reporting. Corporate finance departments must also maintain strong internal controls to help prevent financial fraud. The Sarbanes-Oxley Act (SOX) for example protects individual financial data from theft and tampering. The Gramm-Leach-Bliley Act (GLBA) requires financial institutions to clearly disclose their information practices and ensure the security of customer information. The General Data Protection Regulation (GDPR) requires the responsible handling of EU citizens’ personal information, regardless of where it’s processed. Compliance with these and other regulations is essential for corporate finance departments to maintain public trust and legal protection