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CFO

What cybersecurity signals about your business

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The following is a guest post from Michael Paull, president and CFO at The Ahola Corporation. Opinions are the author’s own. 


I regularly receive detailed cybersecurity and operational resilience questions from clients and prospects. From conversations with peers, I know I’m not alone. In many cases, cybersecurity reviews have quietly become part of the sales process.

While those requests focus on cybersecurity, they are ultimately asking these questions: Can we trust you with our data? And if something goes wrong, how prepared are you to respond? 

The requests come in many forms: Do you have a system and organization controls audit? Can you provide proof of cyber liability insurance? What does your business continuity and disaster recovery plan entail?

There are many variations, but the theme is unmistakable. Companies of all sizes now evaluate operational trustworthiness as part of the buying decision.

When responding to a prospect’s RFP, there will very likely be a section on cybersecurity. Certain controls should now be considered table stakes, but depth and operational maturity increasingly differentiate vendors. Prospects are not simply evaluating whether controls exist. They are evaluating whether your company operates with discipline, accountability, and preparedness. Strong internal policies, frequent updates, and executive oversight, preferably from a chief compliance officer, all help reinforce that confidence.

An RFP will generally include a section on cyber insurance and the commonly requested certificate of insurance. It is important to make sure that your coverage is adequate. Adequate cyber liability coverage has become an expected part of vendor diligence. Coverage requirements vary by industry, client profile, data sensitivity and operational risk exposure. Your broker can help you benchmark your coverage levels. While insurance is in place to cover catastrophic events, you can argue that cyber incidents are not only catastrophic but existential. A building destroyed by fire can be rebuilt. A company that exposes client data may never recover from the reputation hit, regardless of the insurance proceeds. Trust is priceless and nonnegotiable. 

Current clients and their auditors will also be inquiring about system and organization controls audits. SOC audits have become standard diligence requests for critical vendors and service providers. These requests are now less about checking a compliance box and more about validating operational trustworthiness.

Another driver of these requests will be a client’s vendor risk management policies. Vendor risk management expectations continue to push cybersecurity scrutiny throughout entire vendor ecosystems.

A weak or unclear response can create doubt far beyond cybersecurity itself. These requests are proxies for how well-run your company appears to be. 

Cybersecurity reviews are moving downstream

In many cases, cybersecurity reviews have quietly become part of the sales process. In many organizations, cybersecurity reviews now occur well before pricing, implementation discussions, or contract negotiations. A slow, incomplete or disorganized response can create uncertainty long before product functionality or service quality are fully evaluated. Operational trust has become part of competitive positioning. I am now receiving these questions not directly from IT departments or compliance teams, but through sales channels. Prospects are asking earlier in the process and with greater specificity. In many situations, they are repeating questions driven by their own auditors, procurement teams, compliance requirements, or internal risk reviews.

Modern businesses often operate through interconnected ecosystems of software vendors, integrations, data providers, and outsourced services, increasing both operational efficiency and third-party dependency risk.

Often, the prospect may not fully understand the technical details behind the request. They simply know they are expected to ask the question and document the response. Cybersecurity expectations are increasingly cascading through vendor ecosystems as companies respond to pressure from auditors, customers, regulators and vendor risk management programs.

These expectations are no longer limited to large enterprises. Mid-sized companies now face sophisticated diligence and vendor risk requirements as larger organizations push compliance expectations throughout their vendor ecosystems.

As a result, companies need to be prepared not only operationally, but commercially. A slow, incomplete or disorganized response can introduce uncertainty into the sales process long before pricing, service levels or product functionality are fully evaluated.

Cybersecurity as operational diligence

Consider how businesses now evaluate critical software providers. Whether it’s a payroll platform, ERP system, CRM solution or accounting software vendor, prospects increasingly expect detailed responses around cybersecurity, business continuity, insurance coverage and operational resilience before signing an agreement.

A CRM provider, for example, may face cybersecurity questions about data privacy and operational continuity. Customers want to understand how quickly systems can recover after an outage or cyber incident and whether critical operations can continue during disruption. If client or pipeline data is compromised or lost, the consequences could be devastating. With the proliferation of CRM providers, prospects often use cybersecurity diligence as an early filtering mechanism. A fragmented or delayed response is often enough to derail the sales process in such a crowded market segment. It doesn’t necessarily imply that the vendor is substandard, but it does introduce risk and uncertainty into the process. A disturbing reality is that companies often discover their cybersecurity preparedness is inadequate only when an important prospect starts asking difficult questions.

Let’s say you’ve outgrown your accounting system and are looking for a new provider. The same concerns apply, and more. This system not only contains client, vendor and employee data (including PII), it also has your pricing, costs, and other confidential information. Included in your RFP are detailed and comprehensive questions about the protections you expect. The provider quickly responds with a well-organized cybersecurity diligence package that clearly addresses operational continuity, governance, insurance coverage, and incident preparedness. 

That type of response not only inspires confidence but also removes some obvious obstacles. It then allows you to focus on features and functionality and your business needs.

Operational trust is becoming visible

Companies are now being evaluated not simply on product quality, pricing or service capability, but on operational trustworthiness, including their ability to safeguard information, maintain continuity, respond under pressure and operate with discipline. Cybersecurity has become one of the clearest and most measurable indicators of that trust.

Prospects may not fully understand the technical nuances behind every policy, audit or continuity procedure. What they do understand is what those items represent: preparedness, accountability, governance and operational maturity. Companies that respond quickly with organized documentation, clear ownership, and tested continuity plans reduce uncertainty in the buying process. Companies that struggle to answer basic diligence questions may unintentionally signal broader concerns about responsiveness, leadership oversight, and operational discipline.

Cybersecurity preparedness is being interpreted as visible evidence of how well a company is managed overall. 

As businesses become increasingly dependent on cloud-based operational infrastructure, customers and prospects naturally want reassurance that critical systems and sensitive data can be protected and recovered during disruption. Operational trust is now being evaluated not during normal conditions, but through the lens of stress and continuity. Prospects want confidence that a company can continue operating during outages, cyber incidents, vendor disruptions or other unexpected events. In many cases, preparedness becomes obvious very quickly. Organized responses, clear ownership and tested continuity procedures tend to signal operational discipline and reduce uncertainty during the evaluation process. In many ways, operational trust is no longer defined solely by avoiding disruption, but by demonstrating the ability to respond effectively when disruption occurs.

Operational trust as a competitive advantage

The strongest companies tend to treat cybersecurity diligence materials the same way they treat financial statements, contracts, or investor materials: organized, timely, accurate, and ready to provide quickly. The goal is not merely compliance. The goal is to reduce uncertainty and accelerate trust. 

Responsiveness itself becomes part of the evaluation. Companies that can confidently articulate their controls, continuity planning, governance structure, and incident preparedness often create confidence beyond cybersecurity itself. Well-run companies reduce uncertainty. Poorly prepared companies introduce it.

Companies are no longer evaluated solely on the quality of their products or services. They are also being evaluated on whether they appear capable of operating reliably under pressure, protecting sensitive information and responding effectively to disruption.

Cybersecurity reviews may begin as technical diligence exercises, but they often evolve into broader evaluations of operational maturity, governance and trustworthiness. What cybersecurity signals about your business may extend far beyond cybersecurity itself. Increasingly, cybersecurity is not simply a technology issue. It is becoming a visible measure of operational trust.

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