Effective cybersecurity depends on adequate funding. Yet, gaining and maintaining a sufficient cybersecurity budget can seem like you're trying to use a trampoline to jump over the moon.
Cyberthreats are always changing, and the nature of cybersecurity must constantly advance to match the growing threat landscape. Unfortunately, the mindset in the industry fails to match the risk. Instead of taking a proactive response to cybersecurity, company leaders wait to address security needs until after an attack or when budget money is freed up sometime in the unforeseen future. When organizations attempt to minimize spending, cybersecurity often gets pushed aside.
As a result, IT managers face a constant struggle trying to justify cybersecurity spending. When it comes to a cybersecurity budget, most IT professionals are either fighting to get it or fighting to keep the funds they have. Justifying your company's cybersecurity budget is not just an IT priority. It's a critical function that could have a major impact on the future of your organization.
A company with a cybersecurity budget needs to know how to continually justify its value to avoid cuts. An organization without a cybersecurity budget must learn how to sell the value of adequate security funding to the company CEO or the board. Unfortunately, neither is an easy task. Even when you know cybersecurity is necessary, it can be difficult to convey the importance of justifiable funds to decision-makers.
Allocating funds is never easy. However, the right knowledge and strategies can help you pass on your knowledge of the importance of cybersecurity to those in a position to do something about it. This guide describes the importance of cybersecurity, how to explain the relevance of the situation to others, and pitfalls to avoid when trying to gain or maintain an adequate cybersecurity budget.
Every business is a target for cyberthreats. Cybersecurity, like physical security, is essential to keeping your business safe. Yet, even while awareness of the need for cybersecurity is growing, plans are often devised as though the organization will never face an attack. It's not enough to believe that cybersecurity is important. To prove your company's budget needs, you must know why it is critical and have the ability to convey the importance of cybersecurity to company leaders.
The cyberthreat landscape is growing faster than ever before. As organized cybercrime and the availability of illegal products and services grow, companies of all sizes are facing bigger risks. Large organizations and Fortune 500 companies are no longer the most likely targets for cybercrime. The use of botnets means attacks are more likely to be random and opportunity based. If your organization isn't adequately protected, the eventuality of a cyberattack is no longer matter of if, but when. These statistics show the astronomical growth of cybercrime in recent years.
Cybersecurity is a top concern for businesses in 2022. Full-time remote work or hybrid models are likely to become permanent in many industries. The attack surface is growing exponentially. Attacks that result in physical danger and interrupt critical systems have occurred in several locations. Gartner predicts the ever-expanding digital footprint of modern organizations will drive this year's top cybersecurity trends, including:
There is no set price that will provide adequate cybersecurity for every company. No company is too small or unimportant to be a target for a cyberattack. Yet, all organizations don't need the same level of security. Determining how much you need to spend on your cybersecurity will depend on the size of your company, your employees, and exactly what you need your security efforts to provide.
These factors will determine your cybersecurity costs.
Cybersecurity is an organizational issue not just an IT issue. Cyberattacks are growing in complexity and the related expenses can completely derail even the most successful business. As businesses struggle to recover from pandemic losses and manage business expenses during economic turmoil, many are forced to cut back on unnecessary expenses. IT managers must prove that cybersecurity is not only necessary but crucial to future success.
Your business needs an adequate budget for cybersecurity. Yet, the company can't afford to waste millions on ineffective or unproved cybersecurity efforts. To secure your cybersecurity budget, you must be able to clearly express the dangers of an inadequate security solution and your organization's needs as well as cost-effective solutions that offer the best likelihood of success. Unfortunately, there is no magic formula to make this an easy task. When preparing for your budget meeting, these tips can help you clearly justify your cybersecurity budget.
Whether you have a cybersecurity budget and methods/tools that are working effectively or your cybersecurity efforts can only be called minimal at best, citing occurrences in the previous year can help make your budget request relatable. Consider your company's track record of approving budget requests and increases. Create a proposal that shows the ROI of previous investments, new dangers, and how specific tools can address new threats while offering significant benefits that save money in the long run. If cutting costs have led to increased expenses due to poor security, these mistakes can offer insight into the long-term expense of restricting funding.
While high-profile attacks offer gasp-worthy numbers and frightening scenarios, they might not be the most convincing way to justify your organization's need for effective cybersecurity. It's important to describe the threat environment as it relates to your organization and note the risks of not investing. Consider these examples.
The goal is to build understanding. These specific concerns may be more relatable to your organization than the dangers associated with the Colonial Pipeline attack or the attack on JBS Foods. In industries where cybersecurity has previously been overlooked, it will likely be important to cite the fines and penalties associated with missing deadlines for new certifications, and the overall cost of a cyberattack.
The cyberthreat landscape is growing continually and recent events have only fueled the expansion. However, many organizations are facing critical budget shortages, and requests for increased cybersecurity funds may go unheard without a convincing justification of need. Consider if any or all of these recent changes affect your organization's cybersecurity needs.
When discussing the impact of these changes, it's important to note specific occurrences that relate to your company. Along with relevant new concerns, it's important to suggest relevant solutions with proven ROI that can be backed by measurable data.
Your organization has a responsibility to protect certain types of sensitive data. Protection laws can vary from state to state or across different industries. Most organizations must follow regulations for the personal information of customers and employees. Other requirements include intellectual data, government data, research materials, etc.
Data protection methods like backup, protection, storage, and sharing procedures can be perceived as a burden to user productivity and a wasted expense to company leaders. By drawing parallels to the specific data your company uses and the dangers of leaving it unprotected, you can clarify the need for essential funds.
Tools and technologies are only part of the cybersecurity puzzle. Without data analysts, engineers, and other cybersecurity professionals, tools won't perform effectively and new threats can't be recognized. Humans in cybersecurity bring experience and knowledge as well as critical thinking needed for effective threat hunting, detection, and incident response. Yet, the cost of employing a full cybersecurity team and the challenges of recruiting make it difficult to maintain a fully staffed team.
If you don't already have cybersecurity experts on your payroll, adding these yearly salaries to your budget will require a massive investment:
For many companies, increasing cybersecurity headcount through managed or co-managed services like MDR is a much more achievable solution. Companies can invest in 24/7 monitoring, detection, and incident response from a full team of experienced cybersecurity professionals at a fraction of the price of an in-house SOC.
Although two-thirds of businesses have suffered some type of cyberattack, many businesses still have a false sense of confidence that they're unlikely to become a target. This overconfidence leads businesses to limit security measures to compliance or other minimal efforts that can leave organizations open to attack. Without carefully defining your company's needs and recognizing solutions that are both cost-conscious and effective, you could fall victim to these pitfalls and lose funding for essential cybersecurity functions.
Industry, state, or federal compliance with certain laws is a requirement for businesses in practically every industry. However, it should not be the defining factor of your cybersecurity plan. Effective cybersecurity is the end-to-end effort used to protect your organization. Compliance should be a by-product of your effective cybersecurity plan. Cybersecurity that is minimalized or dictated by requirements is likely to be ineffective and potentially even cost more than a comprehensive plan that prioritizes security initiatives.
Every organization faces unique risks. Effective protection comes from the recognition of relevant information and where your company's risk lies. Unfortunately, many organizations take a broad spray paint approach to cybersecurity that spreads funds equally across all areas of network security. This approach can lead to overspending in some areas while underinvesting in others. The overall result of such a budgeting approach is a costly budget request with little proof of ROI.
You get what you pay for. This statement is often true. However, when it comes to effective cybersecurity aided by modern technology, what you see might not be what you get. For example, the cost of employing a full in-house SOC might be the most expensive option available. It is an admirable solution that can yield successful results. However, the security professionals in your organization aren't likely to be actively protecting your organization's network 24/7. Similarly, investing in a large collection of cybersecurity tools can backfire when systems don't integrate properly or your IT/security team doesn't have the headcount to manage each tool effectively. By considering the value of cost-effective services that consolidate multiple services into a single solution, you can limit spending and develop a more comprehensive cybersecurity solution.
C-suite professionals and board members are increasingly recognizing the importance of cybersecurity and the impact an attack can have on your business. This recognition means that budget approvals are more likely to be easier to get. Unfortunately, this doesn't mean the company has unlimited funds or the capability to obtain resources that simply aren't available.
There are currently about 435,000 cybersecurity job openings in the US. The unemployment rate in the industry is 0%. Is your organization in the position to recruit top talent in a very competitive industry? For many businesses, the answer is no. In fact, cybersecurity recruitment is so challenging that large corporations recruit cybersecurity professionals that are gainfully employed with higher pay or improved compensation. Pitching a budget plan for resources you can't get could mean losing funds that could be used in different ways for effective cybersecurity.
An ad-hoc budget plan isn't a plan at all. Recognizing the cybersecurity solution you think is best for your organization and comparing costs isn't enough. Whether you have a budget or you need one, you'll need a plan to defend your position. To justify your budget request, you'll need to complete a comprehensive plan that shares the effectiveness of the solutions outlined in the budget. When planning for your budget meeting, take these steps to outline a successful proposal.
When it comes to cybersecurity expenses, the bottom line is that no attack will cost less than prevention methods. When you can illustrate the dangers of falling victim to an attack and showcase effective solutions with a visible ROI, you're more likely to obtain and maintain the funds you need for a realistic budget.
During uncertain economic times, it's common for organizations to cut costs and decrease spending. With the right approach, your effective cybersecurity budget will illustrate cost savings in the form of ROI and end-to-end protection. When you use these tips to prepare for your budget meeting, security leaders are more likely to approve your request. Cybersecurity is a necessity and a way to help your organization save money over time. Learn more about budgeting for cybersecurity by downloading the BitLyft Cybersecurity Budget Guide.