To:        CEO, ABC Trading Company

From:   Amanda Coleman

Date:   September 18, 2025

RE:       Organizational location of the Cybersecurity Department

BLUF: This memorandum outlines the recommendation to place the Cybersecurity Department under the direct supervision of the CEO.

Cybersecurity has traditionally been placed under the umbrella of the IT department, as it uses similar network infrastructure. As new technology brings greater threats and billion-dollar data breaches, information security needs to be an integral part of the business, with its own department structure.

Advantages

• An independent Cybersecurity department, run by a Chief Information Security Officer, prevents cyber professionals from reporting to officers outside of the technical field. There will be no conflict of interest between security protocols and department heads that prioritize quarterly goals over security posture.

• Effective risk management. As a public company, a cyber incident such as a data leak can negatively affect stock prices, customer and shareholder trust and brand reputation.  Cybersecurity is a strategic business component requiring objective assessments.

• Compliance. The new NIST CSF 2.0 has included governance as part of the framework. This change mandates that cybersecurity risk management is an executive level priority. Direct reporting ensures compliance.

• Faster response to incidents. In the event of a cyber incident, counter measures and recovery operations can begin faster as the CEO and board co-ordinate the response with the CISO.

Potential Drawbacks

• The CISO may become tunnel focused on executive level security needs and lose touch with the daily operations of other important functions like IT or Marketing. Care will have to be taken to maintain communication among the department heads.

• The CEO and board must acquire more technical knowledge of the organization’s cybersecurity risk assessments to implement the best strategies and allocate the right resources. The CISO will have the responsibility of keeping them informed.

Conclusion

Cybersecurity is most effective as an independent business function. It will not be left to operate in isolation but instead collaborate with all departments to create a balanced approach to all aspects of information security. By reporting directly to the CEO, the security program stays integrated with the overall business objectives.