As a Chief Information Security Officer, you’re constantly navigating a delicate balance. You’re the guardian of the company’s most critical assets, but you’re often perceived as a cost center: a necessary expense in a world of ever-present threats. You advocate for budget, implement controls, and work tirelessly to prevent the worst. But what if your role, and the security management activities you champion, were not just a defense mechanism but a powerful driver of corporate revenue?
A groundbreaking 2025 study by Cho and Cho, analyzing data from 545 firms, reframes the entire conversation. It moves security from the expense column to the innovation column, providing CISOs with a new, data-backed narrative to bring to the boardroom. The findings are not just insightful; for some, they will be downright shocking.
The Surprising Truth About IT Investment
The study’s most startling discovery is what the authors call the “IT productivity paradox.” Conventional wisdom dictates that higher investment in IT infrastructure should fuel growth. The data, however, tells a different story. The research revealed that high IT investment, on its own, negatively impacts both sales revenue and operating profit.
This counter-intuitive finding suggests that without the proper controls and strategy, throwing money at technology can lead to inefficiencies that actively harm the bottom line. It’s a critical insight that challenges the “spend more, get more” mentality. So, where is the disconnect? The answer, according to the data, lies squarely in security.
How Security Management Turns IT Spend into Corporate Performance
The negative impact of high IT investment wasn’t universal. The researchers introduced a moderating variable that completely flipped the results: the presence of a formal, certified Information Security Management System (ISMS) or ISO certification.
Here’s the crucial takeaway: For companies with a certified ISMS, the negative effect of high IT spending was not only neutralized but reversed into a positive driver of performance.
This demonstrates that a structured security framework isn’t just a compliance checkbox; it is the essential mechanism that enables an organization to realize the full value of its technology investments. An ISMS ensures that resources are managed efficiently, risks are controlled proactively, and the entire IT ecosystem is aligned with business objectives. It transforms a costly, complex IT infrastructure into a secure, efficient engine for growth.
Redefining the CISO’s Strategic Role
The study also shed light on the CISO’s organizational structure. Does an independent CISO drive better performance, or is combining the role with the CIO more effective? The answer is nuanced and, once again, depends on the presence of a formal security framework.
- The Independent CISO: An independent CISO role only had a positive impact on sales revenue when the company also had an ISMS in place. Without that framework, the effect was not statistically significant.
- The Dual-Role (CISO + CIO): Combining the CISO and CIO roles showed a negative correlation with sales revenue. Alarmingly, having an ISMS in place amplified this negative effect. This suggests that in organizations where a potential conflict of interest exists between IT delivery and IT security, a formal framework can highlight and even exacerbate operational inefficiencies if the roles are not separated.
For small, technology-focused firms where a dual role might be unavoidable, this presents a strategic challenge. The data suggests that the rigid application of a framework like an ISMS in such an environment could hinder the agility needed to launch products quickly.
The Takeaway for Today’s CISO
This research provides a powerful new lens through which to view your security program, directly linking security management to corporate performance. You are not just managing risk; you are unlocking the potential of the entire organization’s technology stack.
- Frame Security as an Innovation Driver: Use this data to shift the conversation from cost to value. Your internal security training, audits, and external collaborations are directly linked to improved sales revenue.
- Champion Formal Frameworks: An ISMS or ISO certification is your key to justifying IT spend. It is the moderating factor that ensures technology investment translates into positive financial outcomes.
- Advocate for Strategic Alignment: The structure of your role matters. Use these findings to open a dialogue about how security governance is best organized to support the company’s unique goals, size, and culture.
The era of viewing security as a purely defensive cost is over. The data is clear: strategic security management is a vital component of corporate innovation and financial success.
From Insight to Action with CISOteria
The Cho and Cho study provides CISOs with a new, data-backed narrative, directly linking security management to corporate performance, and shows that a mature security program isn’t a cost center: it’s a driver of performance and ROI. But translating these strategic insights into a proactive, effective, and mature security operation is the primary challenge for today’s CISO.
This is where CISOteria, the first SRM platform for CISOs, comes in. Our all-in-one platform is designed to move your organization from reactive to proactive, empowering you to mature your security program and demonstrate its strategic value. We help leaders drastically reduce cyber breach probability, slash recovery times from days to hours, and maintain 24/7 compliance, giving you the peace of mind to focus on your business.
For Further Reading:
This article is based on: Cho, Hyunwoo, and Keuntae Cho. 2025. “Impact of Security Management Activities on Corporate Performance.” Systems 13, no. 8: 633. https://doi.org/10.3390/systems13080633
