CFO Studio Magazine with Dominic Caruso, CFO, Johnson & Johnson

Q4 2016 WWW.CFOSTUDIO.COM 33 management and training. It’s shifting more toward cybersecurity training” with disaster training programs focusing on responding to data leaks. She called it a “sign of the times,” and added, “I want to invest in training people to move into this next millennium.” Insuring Up As the conversation continued, some in attendance revealed that they had purchased cybersecurity insurance. This is a relatively new marketplace, Mr. Calhoun noted, and “it’s really evolving for those selling it and those buying it, as both try to figure out what exactly they’re insuring and how much to charge and pay for it.” He added that the idea of insurance coverage against cybersecurity threats is a pretty good one, given the uncertainty of it all, and because it is possible to identify how some costs relate directly to certain risks. “Whether it’s the cost of notifying individuals who may have been impacted, or the expense of taking additional steps within your networks to correct it and prevent it from happening again, there are indeed some areas where you’re better off having insurance coverage to protect yourself than not having it at all.” As for the extent of that coverage, Mr. Calhoun advised companies to “lean toward buying more than you need, just because of the uncertainty of what’s really necessary.” Better to have more than you’ll ever need, he said, than to be caught with less. Silver Linings The increase in cybersecurity threats and attacks is providing an opportunity for organizations to take a good, long look at increasing their level of security, said Mr. Calhoun, “which is definitely a good thing.” And it happens to be a good time, he said, to “take a step back and examine, for example, access into your systems: Do you use password security and what do you do with that? What information do you actually store? Would it be better to not store some data on a permanent basis? Do you use firewalls or VPNs (virtual private networks)?” These are all ways, he pointed out, to be more alert, attentive, and aware of security issues. “You may have looked at some of these items, like firewalls, for instance, as an inconvenience to personnel, or as an additional cost layer that you just don’t need. But when you start viewing them from a cybersecurity standpoint, those digital barriers become very good things to implement within your organization for all the right reasons.” Mr. Calhoun said he hoped participants walked away with an appropriate level and balance of fear that may have gotten accentuated, based on what was discussed. “In addition, maybe a little clarity was gained around potential solutions that exist to address that fear, whether that be in the area of insurance coverage or a new way to look at cloud computing.” Peg Koenigs, Senior Vice President and CFO at the Federal Reserve Bank of Chicago, said in an interview after the dinner that she believes a majority of companies across the globe are concerned with the ever-increasing threat of cyberterrorism. She added that it was interesting to see that “CFOs are taking an active role in this, and that it is clearly a new responsibility for CFOs across the board.” Ms. Koenigs said she assumes that, universally, every organization is thinking about, experiencing, and making efforts to shore up cybersecurity, and some of this is happening in the office of the CFO. “It’s expected of all of us CFOs to protect the data. Certainly, it’s a risk we think about and it sure is part of my responsibilities.” Mr. Calhoun closed the discussion by acknowledging that cyberterrorism is “one of those areas that tends to get pushed to the back burner as other issues take precedence and you get busy in your routine day-to-day.” He admits it’s easy to lose sight of it a little bit, but cautions that “it does need to be elevated within your organization to the appropriate level to get people’s attention.” C CFO Studio Advisory Board & Technical Review Committee Tim Anglim YesCFO > Founder and President Andrew Savadelis > Finance Executive Michael Eldredge > Finance Executive VIEW PROFILES AT www.cfostudio.com Bert Marchio Edge Therapeutics > Chief Accounting & Operations Officer Howard Reba Marlin Equity Partners > Finance Director