Integrating the Accounting Function into Cyber Risk Governance: A Proposed Organizational Framework to Strengthen Financial Information Protection in the Public Sector
Keywords:
Cybersecurity Risk; Financial Reporting; Risk AssessmentAbstract
Objectives: This paper aims to discuss the integration of the accounting function into cyber risk governance in order to strengthen the protection of financial information in the public sector within the context of digital transformation. Prior Work: Previous studies on cyber risk governance have primarily focused on technical and regulatory dimensions, while limited attention has been given to the organizational role of the accounting function in addressing financially material cyber risks and protecting financial information. Approach: The study adopts a descriptive–analytical approach based on the review of relevant literature, governance frameworks, and prior studies. It also analyses the organizational gap between cyber risk governance requirements and the actual practices of public sector institutions. Results: The findings reveal a significant organizational gap reflected in the limited formal involvement of the accounting function in cyber risk management processes, as well as weak alignment between cybersecurity policies and financial governance mechanisms. Implications: The study highlights the importance of strengthening the institutional role of the accounting function within cyber risk governance frameworks to improve financial information protection, accountability, transparency, and institutional resilience in the public sector. Value: This paper provides an organizational perspective by proposing a framework that integrates the accounting function into cyber risk governance, thereby addressing an important gap that has received limited attention in previous literature.
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