The Risks and Solutions You Need to Know
In the connected world, and one which is increasingly ‘lived’ in the cloud, your business is under constant threat of cyberattack.
A report from IBM discovered that the average total cost of a single data breach escalated to $3.86 million in 2020. It also found the United States experiences the highest data breach costs in the world, at an average $8.6 million. Further, according to the U.S. Securities and Exchange Commission, 60% of small businesses closed within six months of falling victim to a cyberattack.
It’s clear that lack of cybersecurity causes huge cost and highly damaging risks to your business. So how much should you spend on your cybersecurity?
Average Spend on Cybersecurity
There are vast differences in how much each organization spends on security. The crucial factor to remember is that investment into cybersecurity should be continuous. This is due to two main reasons:
- Ever-evolving intelligence in ever-changing technology, meaning updates, revisions, and awareness must maintain an equal level of intelligence to protect
- An effective way for attacks to infiltrate your organization is for them to go unnoticed, meaning targets discover they were attacked long before the breach was identified
Small Business Spend
It would be incorrect to believe that the smaller the business, the smaller the risk. In fact, small businesses should spend a considerable amount (1-2%) more of their operational budget on security.
This is largely because small businesses need to implement protection barriers equally as large businesses, but from a much smaller revenue base. Smaller businesses also tend to work on a closer-knit workforce, which is a hindrance to security.
The damage from a cyberattack has greater impact on small businesses. Your systems only need to be infiltrated once for the damage to be done.
Large Business Spend
Investment in cybersecurity for large businesses can vary depending on the business activities and potential risks. Most large businesses allocate between 1% and 2% of their operational budget on cybersecurity. Ponemon Institute calculated the approximate spend of large enterprises on cybersecurity awareness programs alone at $4 million annually.
For large businesses, it is not solely financial cost that must be implemented, but an engrained measure of principles in every business decision and action. It’s an investment on a much larger scale in that the entire workforce must operate with continuous protection.
Whether your organization is big or small, the need to budget for cybersecurity is unquestionable.
What You Should Consider When Allotting a Cybersecurity Budget
The industry in which your organization operates, as well as other factors, will help determine a cybersecurity budget that protects your business and revenue, while also making financial sense. Here’s how you should plan for your organization’s cyber protection:
1. Conduct an Initial Assessment
Look at how your budget is currently being allocated, paying particular attention to current products and services and each of their daily, monthly, and annual spend.
It is crucial that you monitor how much is being spent on cybersecurity for your organization, and even more important to monitor its effectiveness. Therefore, this assessment must be reviewed periodically, taking inventory of new products and services, and their expenses.
Only then will you be able to gauge what is working both financially and effectively for the protection of the organization. You can then allow for accelerated investment or eliminating costly and ineffective methods.
2. Ramp Up Awareness Efforts
Your employees are your frontline against cybersecurity. They are your organization’s immune system, who can only protect with knowledge. Accelerate your efforts to create constant awareness in everything your employees do, so they can remain vigilant.
Attackers look for weak spots, and heavily disguise their methods. With an aware and vigilant workforce, risk is greatly reduced.
3. Invest in Cybersecurity Staff
Your Chief Information Security Officer (CISO) is an invaluable resource to your cybersecurity efforts, acting as a crucial advocate and conduit between your workforce’s various functions. A skilled CISO is a highly cost-effective hire to:
- Assess business exposure points
- Ensure compliance
- Execute ongoing and continuous risk assessments
- Implement ongoing security training and promotion of awareness
- Drive efficiency
- Increase revenue
- Heighten engagement
You must invest in the right cybersecurity staff to assess the risks to your business, advise on the tools you need to remain protected, and ensure processes and procedures are correctly adopted by your employees.
Focus on Business Growth and Put Protection in the Right Hands
Enable your company to focus on your specialty. Contact Tiro Security to discuss our comprehensive range of cybersecurity solutions.