The rise of the tech-savvy CFO: How Irish financial leaders are embracing digital transformation

Guest post by Paul McClatchie 

The commercial landscape is transforming at a speed unseen before in human history,, and the role of the Chief Financial Officer (CFO) is following suit. .

Traditionally seen as the gatekeeper of budgets and financial metrics, the modern CFO is now expected to be on the frontlines of digital and cybersecurity strategy, playing a pivotal role in safeguarding a company’s digital assets and reputation.

The tech-savvy CFO

This shift has led to a surge in demand for CFOs and finance leaders who possess not only financial acumen but a strong understanding of technology too. The idea of a “digital-first economy” has been in the mainstream for a long time, but with the mass adoption of AI this idea is now becoming a reality. As businesses across Ireland and beyond adapt to a digital-first economy in real life, finance professionals are becoming key players in implementing and overseeing tech-driven strategies.

The modern CFO: From financial steward to cyber defender

Today’s CFOs have taken on expanded roles that involve managing risks associated with digital assets, including customer and employee data. CFOs and other senior finance professionals are at the helm of protecting sensitive information. With the introduction of data protection laws like GDPR, the safeguarding of customer and employee  information is a company-wide responsibility. .

The modern CFO is no longer just a gatekeeper of budgets, They’re now very much on the frontline in the defense of the business’s digital assets.

This responsibility extends to monitoring data privacy compliance and ensuring robust defenses against cyber threats.

A single breach can result in significant financial loss. The immediate disruption in the short term leads to a high cost, but in the long term the erosion of customer trust further compounds that cost.

The media is filled on an almost weekly basis with cyberattacks targeting large brands.These stories demonstrate how damaging a lapse in security can be, both financially and reputationally. SMEs are not spared either as cyber criminals attack businesses of all sizes. As a result, CFOs now must balance the cost of cybersecurity with other financial constraints. This is a skill that’s become as essential as cash flow forecasting or budget allocation.

New skills for new challenges

Rather than focusing exclusively on making a profit, finance has to ensure revenue streams are taken care of and  a complex landscape of cybersecurity, digital transformation and compliance.

This shift has led to high demand for cybersecurity specialists, with CFOs often collaborating closely with Chief Technology Officers (CTOs) to ensure robust digital protections are in place.

CFOs are increasingly concerned about direct financial losses from cyberattacks. This makes cybersecurity a priority alongside traditional financial risks like credit and cash flow.

Moreover, with new regulatory frameworks emerging, CFOs must stay abreast of evolving compliance requirements. In some regions, governments mandate a minimum percentage of revenue be allocated to cybersecurity, underscoring the growing importance of tech-savvy CFOs.

Ireland is no exception, as CFOs and finance teams in Irish firms are investing significantly in cybersecurity talent and technology.

Consulting vs. in-house talent

As businesses invest more heavily in digital transformation, many are outsourcing cybersecurity and IT auditing functions to consultancies. This can require spending tens of thousands of euros to assess and reinforce their digital defenses. However, some CFOs are opting to bring these skills in-house, understanding the long-term value of having dedicated cybersecurity and IT staff.

The choice between in-house talent and consulting depends on the company’s specific needs and budget.

In many cases, larger Irish firms or those with sensitive data to protect are assembling dedicated teams who work closely with CFOs to manage risk continuously. For smaller companies, outsourcing remains a viable option, but the overarching trend points toward an increasing integration of tech expertise within finance departments.

CFOs and CTOs: A strategic partnership

As cybersecurity and data protection have become critical to business continuity, the role of the CFO now often overlaps with that of the CTO. Gone are the days when finance chiefs were simply managing budgets and signing off on expenses. Today’s CFOs work alongside technology leaders to build strategies that are both financially sound and secure.

For instance, CFOs must now consider how user-friendly and robust their security measures are. Dual-factor authentication, for example, is standard for high-stakes financial transactions, while single-factor authentication may be more convenient for everyday logins. CFOs and CTOs must balance the cost and complexity of security measures with the need for seamless user experiences for employees and clients.

The Bottom Line: Technology as a core financial concern

The integration of digital technology within the finance function is not limited to security.

CFOs are also leveraging analytics and AI-driven insights to make better financial decisions and identify potential risks. This shift is transforming finance departments, enabling them to move from reactive to proactive approaches in managing financial health.

With this technological shift, CFOs are not only safeguarding but also optimising their company’s assets, ensuring that every investment in cybersecurity and technology yields a measurable return. The demand for finance leaders who can understand and apply technology effectively is rising.

This trend is expected to continue as businesses worldwide prioritise digital resilience.

Bridging the skills gap

Despite the growing importance of tech skills for finance leaders, there remains a gap in expertise. Many finance professionals are still adapting to the new demands of cybersecurity and data analysis.

However, accountancy and finance qualifications are evolving, with training bodies integrating data and digital skills into their curricula. This shift is essential, as tomorrow’s CFOs will need a blend of financial and technological expertise to excel.

Recruitment specialists in Ireland have observed a surge in demand for finance roles that require technological proficiency. Positions like cybersecurity engineers and IT audit managers, once rare in finance departments, are now increasingly common as companies seek to bridge the skills gap.

A changing landscape for Irish firms

Digital transformation is reshaping Irish firms, albeit gradually.

“I find I’m the one generally bringing the value to the table,” reflects one finance leader on the digital transformation efforts within Irish companies.

While some sectors, particularly accountancy, are making strides with business intelligence (BI) tools, others still lag behind. There’s a prevailing belief that traditional financial skills remain paramount, with digital skills seen as “nice-to-haves.”

However, for businesses to remain competitive, they must integrate these digital competencies into their finance functions. With leading Irish companies like Ryanair already leveraging digital customer service bots, the potential for other sectors to adopt advanced technology is high.

The future-ready CFO

The CFO’s role is undergoing a fundamental transformation.

Today’s CFOs must be strategic leaders who understand both the financial and technological landscapes. As digital threats grow and data regulations tighten, finance professionals are stepping up to become integral players in their company’s digital transformation.

For Irish firms looking to stay competitive in an increasingly digital world, investing in tech-savvy finance leaders is no longer optional.

It’s a strategic necessity that will drive both resilience and growth in the years to come.

Author bio: Paul McClatchie

Engage People recently released its 2024 Salary Guide, highlighting several new developments in the finance and recruitment landscape, influenced by different factors.

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