Good morning. If you thought the Crowdstrike debacle—which disrupted many of the world’s computers—was bad, brace yourself for Q-day. This term refers to the anticipated day when quantum computing will break all current encryption systems. Although this event might be years or even decades away, CFOs should start preparing now.
Governments, businesses, and academics have long been developing quantum-resistant cybersecurity measures, but no perfect solution exists. As demonstrated by Crowdstrike’s failed update, which led to billions in losses globally, it’s not just cybersecurity breaches that can cause problems, but also the transition to new cybersecurity systems.
Migrating to quantum-resistant cybersecurity systems poses significant business risks. Renowned quantum computing researcher Michele Mosca, a professor in the Department of Combinatorics & Optimization at the University of Waterloo and co-founder of the Institute for Quantum Computing, emphasizes this point. Mosca, known for Mosca’s theorem—which predicts when the world must become quantum-resistant—estimates a 5% chance of Q-day occurring within the next five years and a 30% chance within the next decade.
Mosca advises executives to take the threat of quantum computing seriously and to not delay transitioning to quantum-resistant security systems due to costs.
“It’s a material risk,” he states. “You can’t dismiss it by saying there’s only a 30% chance it will happen in the next 10 years. Report that to your board, your auditor, your regulator, your customers: ‘There’s a little over a one-in-four chance that our systems will fail indefinitely because we didn’t prepare.’ That’s not a statement you want to make.”
He adds, “We’ve been ignoring this risk, but that’s about to change.”
CFOs should recognize the “technical debt”—the future cost of reworking technological systems—associated with transitioning to quantum-resistant cybersecurity. According to Mosca, this process will take years, require specialized talent, and cost billions, representing a growing form of debt.
“It’s fine to have debt if you’re aware of it, understand you’re paying interest, and plan to repay it,” Mosca explains. “It’s not fine to pretend it’s not there.”
CFOs will play a crucial role in identifying and addressing the costs related to the transition to quantum-resistant cybersecurity. Mosca emphasizes the importance of CFOs in driving market forces to address these issues proactively.
“CFOs have important work to do to help market forces work for us instead of against us,” he says.
Quantum computing, like any revolutionary technology, brings both opportunities and risks. Mosca urges business leaders to make conscious choices to ensure quantum computing becomes a positive milestone in human history.
“For quantum to be a positive milestone in human history, it’s your choice,” he says. “Many of us are working hard to ensure this positive outcome, but it requires significant leadership across the business and political worlds. We need leaders to step up and guide us in a positive direction.”
The following sections of CFO Daily were curated by Greg McKenna.
Leaderboard
Lucy To was named CFO of SAB Biotherapeutics (Nasdaq: SABS), effective Aug. 12, succeeding former CFO Michael King, who left to become CEO of a private oncology company. To previously worked as a managing director in Wells Fargo’s healthcare investment banking group and has experience at Deutsche Bank, Intercept Pharmaceuticals, and Citigroup.
Brian J. Bertaux was appointed CFO of Hudson Technologies (Nasdaq: HDSN), effective immediately, succeeding Nat Krishnamurti. Bertaux previously served as CFO at Brown Haven Homes and spent 20 years at Trex.
Ginger Smith was promoted to interim CEO of Alpine 4 Holdings (NasdaqCM: ALPP), succeeding Christopher Meinerz, who will resign by Aug. 30. Smith has over 35 years of accounting and management experience and is currently the company’s corporate controller.
Peter Hurter was reappointed as group CFO of Crimson Tide (AIM: TIDE), effective immediately, succeeding Shaun Mullen. Hurter previously served as group CFO from 2018 to 2023 and has been the company’s COO since June.
Tim Foote was promoted to CFO of Blackberry (NYSE: BB), succeeding Steve Rai. Foote joined Blackberry following its acquisition of Good Technology in 2015 and recently served as CFO of the cybersecurity division.
Brad Tade was promoted to CFO and treasurer of ADMA Biologics (Nasdaq: ADMA), succeeding Brian Lenz. Tade joined ADMA last June as VP of financial operations and has over 20 years of experience in the medical device and pharmaceutical industries.
Julie Haase was promoted to CFO of Liberty Mutual Insurance, effective Jan. 1, succeeding Chris Peirce, who is retiring at the end of 2024. Haase has been with Liberty Mutual since 2014 and has held various leadership roles, including COO.
Jennifer DiRico was named CFO of Commvault (Nasdaq: CVLT), effective Aug. 12, succeeding Gary Merrill, who is becoming the company’s first chief commercial officer. DiRico previously served as a senior VP at Toast.
Big Deal
Corporate travel spending could return to or exceed pre-pandemic levels by year-end, according to Deloitte’s 2024 corporate travel study. Over 70% of travel managers expect increased travel spending this year, with 58% predicting further growth in 2025. Conferences and in-person client meetings are driving this trend.
Going Deeper
- “Meta, Microsoft, and Google blew blinding amounts of AI smoke during earnings—here’s what we actually learned” by Alexei Oreskovic
- “Who is Polymarket CEO Shayne Coplan? The 26-year-old’s crypto betting site is taking U.S. politics by storm” by Jeff John Roberts and Niamh Rowe
- “Inside Volkswagen’s $130 billion EV battle” by Vivienne Walt
- “Trump tried to sway the Fed and now Powell is fighting back” by Eleanor Pringle
Overheard
“A completely homogeneous team risks becoming an echo chamber of limited, like-minded ideas, which will, at best, stifle innovation. At worst, the scarcity of diverse perspectives can lead to offensive, inappropriate, or incorrect solutions, undermining the power technology has to connect us.”
