6. Critical Thinking Exercise: CIO Surprises CFO You are the Chief Financial Officer (CFO) of a midsized manufacturing firm with annual revenue exceeding $100 million. You have heard nothing but positive comments about the new Chief Information Officer (CIO) you hired three months ago. As you listen to her outline what needs to be done to improve the firm's computer security, you are impressed with her energy, enthusiasm, and presentation skills. However, your jaw drops when she states that the total cost of the proposed computer security improvements will be $250,000. This seems like a lot of money for security, given that your firm has had no major incident. Several other items in the budget will either have to be dropped or trimmed back to accommodate such an expenditure. In addition, the $250,000 is above your spending authorization and will require approval by the CEO. This will require you to defend the expenditure, and you are not sure how to do this. As you look around the conference room, you can see that other members of your staff are just as surprised as you. What serious mistake has the CIO made and how could this have been avoided?