Middle-market chief financial officers are under immense pressure when it comes to cybersecurity. A recent PYMNTS Intelligence report titled “Cybersecurity Risks Cause Middle-Market CFOs to Cancel Innovation Plans” highlighted how these executives are struggling to balance the need for innovation with the increasing threats of cyber attacks.
For middle-market firms, the main challenge lies in allocating budgets for innovation initiatives, as these funds are often redirected to address cybersecurity threats such as security breaches and ransomware attacks. The complexity of the cyber threat landscape, with multiple entry points that need to be secured, from customer portals to systems connected to partner businesses, vendors, and clients, further exacerbates the situation.
To combat these challenges, many middle-market firms, especially those operating in high-uncertainty environments, are taking proactive measures. These include implementing training programs for employees and updating internal security policies to enhance cybersecurity awareness across the organization.
The PYMNTS Intelligence report revealed that a significant portion of middle-market firms have increased cybersecurity training and awareness programs for employees. Additionally, high-uncertainty firms are more likely to conduct cybersecurity risk assessments and invest in advanced technologies, such as artificial intelligence-driven threat detection, to effectively mitigate cyber threats.
However, the use of AI in cybersecurity is not without its risks. According to cybersecurity firm AppSOC, AI technologies like DeepSeek can also pose online threats, making it crucial for firms to strike a balance between leveraging technology for security and guarding against potential risks.
Despite the efforts to enhance cybersecurity measures, the outlook for 2025 varies based on the level of uncertainty faced by firms. High-uncertainty organizations express mixed sentiments, with some anticipating improvements in cybersecurity conditions while others expect risks to worsen in the coming year. In contrast, low-uncertainty firms are more optimistic about the future, with a majority expecting conditions to improve in the near term.
The disparity in outlook between high-uncertainty and low-uncertainty firms underscores the challenges faced by the former as they navigate cybersecurity threats while balancing other priorities. As the cybersecurity landscape continues to evolve, middle-market CFOs will need to stay vigilant and adapt to emerging threats to safeguard their organizations’ interests.