Leslie Milne, Chief Financial Officer, Gathid.
In a digital economy increasingly defined by risk, complexity and change, identity management sits at the crossroads of compliance, security and operational efficiency. For CFOs, the conversation around identity and access governance is no longer just a technical issue—it’s a business-critical one.
With rising threats, tightening regulations and shrinking budgets, the pressure is on to reduce expenses without compromising on control or security.
The Financial Lens On Identity Governance
CFOs are often tasked with more than just managing the books—they are also the stewards of risk, governance and internal control. That means identity management falls squarely within their purview, particularly as it relates to protecting sensitive financial systems, ensuring audit readiness, and demonstrating robust governance to insurers, regulators and boards.
Where traditional identity management systems often demand complex customization, heavy implementation and intensive vendor support, the modern approach is defined by adaptability, automation and ease of use. Today, smart investment in identity governance is about achieving measurable returns quickly, with minimal friction.
The Business Case Challenge
One of the biggest hurdles organizations face when investing in identity management technology is getting the business case over the line. Security leaders may fully understand the risks, however, when procurement teams or CFOs ask, “What’s the return on investment?” the conversation often stalls.
The answer lies in reframing identity governance as a foundational layer for risk reduction. Poorly managed access controls create vulnerabilities not just in IT, but in financial operations, audit reporting and even insurance premiums. From a boardroom perspective, this is not only an IT problem—it’s an enterprise risk that can erode shareholder trust, damage brand reputation and cost the business significantly.
A smarter approach enables organizations to implement strong governance processes, reduce risk and unlock long-term cost savings by streamlining compliance, eliminating manual processes and improving audit outcomes. It’s not about saving money up front—it’s about not losing it down the line.
Reduce Risk, Reduce Cost
Uncontrolled access and poor identity visibility can lead to unnecessary complexity and cost. Whether it’s orphaned accounts or misaligned privileges, each represents a risk exposure, and every risk exposure can turn into a financial loss. According to IBM’s 2024 Cost of a Data Breach Report, the global average cost of a data breach was $4.9 million—a 10% increase over 2023 and the highest total ever. Identity management is not just a technical safeguard—it’s financial insurance.
Advanced tools like knowledge graphs and digital twins now enable organizations to visualize access relationships and simulate risk scenarios. By mapping who has access to what and why, these tools help identify unnecessary permissions, enforce least-privilege access and eliminate redundancies (full disclosure: Gathid offers this solution). The result? Lower risk, greater audit confidence, faster time to value and reduced identity overheads.
Speed Of Implementation = Speed Of ROI
Return on investment isn’t only about the number—it’s about how fast you get there. When evaluating identity governance platforms, CFOs should look at the speed of deployment, the ease of integration with existing systems, and the level of vendor support required to get up and running.
Cloud-native identity platforms offer significant advantages. With no heavy customization required, businesses can configure systems to their unique needs and go live in weeks—not months. For organizations under pressure to reduce risk and demonstrate compliance quickly, that agility is essential.
Identity Governance Beyond IT
One of the more underappreciated aspects of modern identity governance is its ability to support cross-functional business objectives. For example, clean access control data supports better audit preparation. It enhances financial reporting integrity. It simplifies supplier onboarding. And critically, it enables more efficient and secure use of emerging technologies, including AI.
We often hear concerns from business leaders who are unsure about how much access their AI tools should have. Without clear access policies in place, AI engines can pull data from outdated spreadsheets or poorly secured drives, surfacing information that was never meant to be shared.
A well-governed identity strategy helps ensure that AI—and any other business application—only accesses data that has been explicitly authorized, mitigating the risk of unintended disclosures.
Making The Buyer Look Good
In reality, part of any procurement conversation is helping the person who signs the check feel confident that they have made a smart decision. When a CFO can show a clear path from investment to improved governance, faster audit readiness and stronger compliance, that’s a win.
It also provides a platform for competitive advantage. Organizations that demonstrate a mature approach to identity management are attractive partners and suppliers. They can move through procurement processes faster, win contracts more easily and reduce friction with auditors and regulators.
Challenges And Considerations
Of course, implementing or scaling identity governance is not without its hurdles. CFOs must be prepared to navigate several common challenges including:
• Stakeholder Alignment: Securing cross-functional buy-in from IT, HR, legal and compliance teams is critical to success. Early engagement with key departments helps avoid future friction.
• Integration Complexity: Legacy systems, cloud platforms and third-party tools must all be connected into a cohesive identity framework. Conducting a detailed system audit up front ensures compatibility and avoids project delays.
• Change Management: Identity governance projects often introduce new processes that impact end users. Without proper change management, organizations risk low adoption or user resistance. CFOs should ensure that training, communication and executive sponsorship are part of the rollout plan.
• Cost Forecasting: While long-term savings are real, upfront investment can include licensing, configuration and consulting. A clear, phased implementation road map can help spread costs and build confidence as early wins are achieved.
Investing Smarter
Cost-effective identity management isn’t necessarily about spending less—it’s about investing smarter. Through automation, intuitive platforms and intelligent access visibility, organizations can dramatically reduce the cost and complexity of managing identities without compromising on security.
For CFOs and other business leaders, this is about more than protecting systems. It is about enabling trust, demonstrating control and supporting growth. In a world where compliance, risk and security increasingly intersect, identity governance is not only a cost center, it’s a strategic lever for long-term success.
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