Present-day technology has evolved and grown more sophisticated. The internet of things represents the interconnectedness of devices, virtualization, big data, and the cloud are all new trends.
So, as technology continues to grow and evolve, cybercriminals are becoming more sophisticated and creative in their attacks. That’s precisely why your organization needs to protect itself against this emerging cyber threat.
However, even as organizations become more sensitive about cybersecurity, some questions still need to be answered. Some of these questions include:
- How much should they invest in cybersecurity?
- How do organizations divide or allocate their cybersecurity expenditure?
- What are some cybersecurity budgetary considerations?
The truth of the matter is that cybersecurity is becoming more expensive than before. The rising cost of cybersecurity emanates, first and foremost, from the ever-changing threat landscape.
Today, more than ever, cybercriminals are becoming more sophisticated and innovative. The emergence of business email compromise, delayed denial of service attacks, malware attacks, phishing attempts, and SQL injections are just a few attempts cybercriminals are making to target vulnerable networks and cyber infrastructures.
Companies are Failing to Invest Enough in Cybersecurity
An emerging body of research by Deloitte shows that despite the ever-changing cyber landscape, organizations need to invest more in cyber defenses. A cyber breach survey has revealed shocking statistics in efforts made by organizations to protect themselves against outsider and insider threats.
These statistics include:
- Only 17% of organizations audit their cyber vulnerabilities every year.
- Only 17% of organizations offer cyber training to their workforce annually.
- 34% of organizations have business continuity efforts that capture cybersecurity.
So, most executives and chief security officers wonder whether throwing money at this problem is the solution. Well, the answer is yes – and sometimes no. Yes, organizations must take cybersecurity seriously and invest enough towards cyber defenses.
However, on the other hand, it’s not about how much money you spend on cybersecurity efforts. It’s about where and how money is invested to achieve the greatest good.
So, the trick to investing wisely in cybersecurity is understanding your business cybersecurity vulnerability and knowing exactly where to invest money in your cyber infrastructure.
How Much Exactly Should You Spend?
Well, a reliable formula to use when calculating your cybersecurity expenditure is using a percentage of your total revenues. That’s largely because financial executives use this formula to allocate other functional business areas – marketing, sales, research, development, and distribution.
In addition, always remember that business executives tend to allocate more to specific functional areas, depending on sectors. For instance, financial services firms tend to allocate higher expenditure on cybersecurity than manufacturing firms.
So, the amount or percentage of the revenue you allocate to your cybersecurity efforts depends entirely on your sector and your enterprise’s vulnerability.
So, how can organizations decide what percentage to set aside for cybersecurity? And does this allocation matter what sector (or industry) they’re in or how big or small their business is?
So, to answer these questions succinctly, 4% of your total revenues must be allocated to your IT. In answering the second question, no sector or industry (or even the size of your enterprise) is immune to cyber-attacks and the financial consequences of these attacks.
So, while there is no specific budget for your cybersecurity efforts to grant you complete peace of mind if you’re spending less than 4% of your revenue on cyber efforts, this figure may not be adequate to protect you against threats.
Experts advise that most organizations with comprehensive protection against cyber threats are spending somewhere between 4% to 15% of their revenues on cyber budgets.
A report titled ‘Pursuing Cyber Maturity at Financial Organization’ backs this. The report, which is published by Deloitte, notes that financial services organizations spend at least 4% to 14% of their total revenues on cybersecurity efforts.
The above figure is an accurate parameter, especially considering that financial services firms are most prone to cyber-attack.
However, saying that you reserve 10% to 14% of your budget on cybersecurity investment isn’t an accurate and complete answer. That’s because organizations vary depending on size and market. Some organizations are more vulnerable than others, while others are bigger (and smaller) than others.
Tips for Creating a Cybersecurity Budget
So, here are some tips that may help you create a cybersecurity budget:
1. Start your cybersecurity budget
To kick-start your cybersecurity budget, start by taking an inventory of your assets and noting down all the cybersecurity regulations affecting your organization and industry.
The following information will help you arrive at a realistic budget:
- Determine the size of your business
- Determine your industry
- Determine the kind of data you use
- Establish the devices and networks that you use
- Establish underlying laws and regulations affecting your enterprise
These factors will help you determine a foundational budget for your enterprise.
2. Determine processes to help you create a budget
The second step is to determine and outline your business processes. And if you want to map these processes, you need to evaluate some questions:
- What are your data storage, collection, and data processing methods?
- Who are the persons or professionals involved in all these processes?
- Are there other partners or third parties involved in these processes?
- How and where is your business data shared?
- What software applications does your enterprise use?
- What are your specific company vulnerabilities?
These questions will help you determine pertinent processes and ultimately help you map your budgetary expenditure.
3. Defining cybersecurity budgets
After evaluating and answering these questions, you’ll have a clear overview of your company’s weaknesses and strengths. You’ll know what exactly needs to be protected.
At this juncture, you can even hire a vulnerability assessment partner to help you with your budget. Alternatively, you can hire a managed service provider to map all your IT infrastructure and detect and prevent emerging threats.
Edafio Technology Partners – Your Trusted Cybersecurity Provider
Edafio Technology Partners are Arkansas leading IT management and consulting firm. Specializing in managed services, cloud computing, and cybersecurity, Edafio Technology Partners will make your cybersecurity budgetary planning a breeze.
At Edafio, cybersecurity is no longer an option. As your business grows and acquires more customers, your IT infrastructure and computing environment becomes more vulnerable to privy players, including insiders.
Edafio Technology Partners further believes that as your business grows, it increasingly relies on new computing technologies. The interconnectedness, integration, and interoperability of devices and networks pose a real threat to your enterprise.
Contact Edafio Technology Partners for superior cybersecurity solutions at the best cost.