It security, investment top CFO concerns: Financial Executives Research Foundation (FERF) analyzes the results of its eighth annual CFO technology issues survey.

• Author: Sinnett, William M.

The nature of data security breaches has been changing, with stories about purloined laptops or lapses at huge data centers getting more attention than network penetration by malicious "hackers." Still, technology security ranked first among senior finance executives expressing their concerns about technology issues, even above the perennial challenge of aligning information technology (IT) with strategy.

The results were compiled by Financial Executives Research Foundation (FERF) in its eighth annual technology issues survey. The survey, which represents a cross-section of industries, brought another record turnout, with more than 700 responses, and more than four-fifths of those from CFOs.

Respondents were asked, "Please indicate how important you believe each of these technology issues is to your organization." They then rated each of a list of 15 issues as "Critical," "Important," or "Not a Concern." The top five critical technology issues for 2006 are:

* Identifying the appropriate level of technology security;

* Prioritizing technology investments;

* Aligning business and information technology (IT) strategy;

* Identifying the appropriate level of technology investment; and

* Establishing and maintaining effective dialogue between IT and users.

Technology Security

It is not surprising that technology security scored the highest average rating. Companies struggle to keep customer data and other proprietary information confidential, while the media constantly reports on theft of confidential customer and corporate data. Add to that the number of companies reporting access to systems and other IT-related issues as significant internal control deficiencies, and it is easy to understand why senior financial executives worry about technology security.

Many of the survey respondents reported their companies had experienced some level of intrusion. In fact, one out of every 10 respondents reported at least one major interruption during the past year (defined as a business interruption that lasted for one or more days, with adverse media coverage); and one out of every 20 respondents reported at least two major incidents. With these types of odds, technology security will continue to remain prominent on the CFO radar screen.

Interestingly, for large companies, with over $1 billion in annual revenues, technology security slipped to the number four position. The number one issue for these companies is aligning business and IT strategy. This is...