Your Cybersecurity Blind Spot: Why Financial Data Control Matters

Security teams at fast-growth startups understandably focus on the constant barrage of technical threats – ransomware, phishing attacks, external breaches. However, one often underestimated risk has less to do with cyber criminals and everything to do with business impact: the potential for material misstatement of financial data. This is precisely why your audit partners spend time on IT General Controls (ITGC) audits –  to make sure your tech infrastructure is robust enough to ensure the integrity of the financial data being audited.

Tech Risk vs. Business Risk

Whilst technical security incidents are critical, compromising the integrity of your financial data has far reaching consequences. Inaccurate financials can lead to poor business decisions, regulatory penalties, and a loss of investor trust which can threaten the survival of the business. Compare a common tech security risk to the dangers of poor data controls:

• Tech Risk: A website vulnerability leads to temporary service disruption.

• Business Risk: Weak access controls allow unauthorised changes to revenue figures, misleading investors and management.

Key Controls for Startups to Implement

To ensure your financial data is trustworthy, consider these 5 essential controls:

1. Tight Access Management: Implement strict controls over who can access and modify financially sensitive systems. If possible consider “Just-in-time" admin privileges and apply least privilege for users.

2. Segregation of Duties: Separate financial systems and prevent conflicts of interest and potential errors.

3. Authorised Code Review: A rigorous code review process, ideally with 4-eyes principle. This can catch errors and reduce the chances of fraudulent code insertions.

4. Code Ownership: Clear team ownership of codebases improves accountability and speeds up error resolution.

5. Anomaly Detection: Configure your SIEM or MSSP to flag unusual activity within financial systems (e.g., large data transfers, changes during non-business hours).

Although cliché, security isn't just about protecting data from theft or saying no; it's about enabling your business to make sound, data-driven decisions. By considering not just pure technical risks but also focussing on business risks, you're enabling businesses success.