If a CFO thinks they can stay on the periphery of cyber-threat protection, they should think again. CFOs and their teams are often the first to detect many kinds of cyberattacks, so they must be hyper-aware of potential red flags, says Frank Teruel, CFO of Arkose Labs, a cybersecurity company providing solutions for device IDs, phishing protection, email intelligence and bot management.
However, cybersecurity is just one area outside the finance domain that the modern CFO needs to understand deeply. If a CFO wants to be a business strategist—in other words, meet the expectations of the CEO and board—there’s much more to know.
In the following interview, Teruel draws on his years of finance experience in the cybersecurity market and his role as an adjunct professor in Santa Clara University’s MBA program. He addresses cyber intrusions, leadership lessons and the secrets to being a better communicator.
What cybersecurity threats is the finance organization most likely to encounter before any other function?
I recently sat down with the CISO of a global ride-sharing company. Midway through our conversation, he dropped a surprising revelation: His CFO—not his security team—first spotted an anomaly that signaled a cyberattack. The finance team had noticed something off about the company’s SMS bill. Charges had ballooned out of nowhere, with no corresponding increase in legitimate traffic. Red flag!
When the security team dug in, they uncovered the culprit: bots. A massive wave of automated bots had been hammering the company’s sign-up process, only to vanish when an SMS verification was triggered. The result? Skyrocketing SMS costs and an enterprise-scale case of SMS “toll fraud,” a particularly sneaky attack that exploits companies that use text message authentication.While security teams scan for intrusions, finance teams see the financial breadcrumbs that attackers leave behind. CFOs must treat financial anomalies like flashing red warning lights for cyberattacks, especially unexplained spikes in SMS charges. Unchecked, these attacks drain budgets, tarnish reputations and [require] costly cleanup efforts.
How have your education and professional experiences shaped you as a CFO?
Back in college, my speech teacher would eloquently recite the 10 principles of effective speech. All these years later, principle number one has stuck with me: “The effective speaker is a person whose character, knowledge and judgment command respect.”
An effective leader is a person whose character—think worldview and playbook—is established and prepared. It’s not fluid and unduly influenced in a moment of opportunity or crisis but anchored in key abiding principles like, “Take care of our people and customers, be a good steward of the opportunity, own your mistakes and learn from them.”
The second attribute in principle number one, knowledge, speaks to me of the necessity to immerse myself in the salient information needed in each unique moment. As CFO, I have focused on learning the business, products, market, players, regulatory [environment] and other aspects. Put another way, knowledge is about constantly learning to be ready.
The third element, judgment, speaks to the need to apply the correct information and experience—knowledge—at the right time for the right reasons. That means judgment rooted in your worldview. More than anything else, these three elements have impacted my career.
What is your strategy for building teams?
I have been blessed with amazing team members whose domain expertise, professionalism, passion, candor and determination are inspiring. That’s what I look for in teammates. Are they subject matter experts? Are they comfortable sharing their perspective and passionately defending it? After doing so, are they willing to align around a position that may not have been their preferred outcome? Equally, I focus on not creating an echo chamber; nothing hampers a team more than groupthink.
My team members are hungry to learn and contribute and are intentional in helping the company ascend. The best part for me? Most of my team and I have done it several times; for many of us, it’s the third, fourth and fifth time [working] together.
As an adjunct professor at Santa Clara University, what leadership lessons do you try to impart to students?
The past 13 years of teaching at Santa Clara University’s Leavey School of Business MBA program has been a rewarding way to give back and share my experience. Several key takeaways from my classes come to mind:
- Be intentional and decisive. Business and markets move quickly.
- Contribute meaningfully outside of your domain. Be a great businessperson who happens to be a good “fill in the blank” professional—finance, marketing, product, etc.
- Focus on communication. My kids have heard this admonition for their entire lives: “Everything in life is how you tell the story.” Leadership is about winning hearts and minds, which comes down to how you communicate.
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