To Spend or Not to Spend? The Cost of Cybersecurity

With a recession rumored to be on the horizon, mass layoffs, budget cuts, and rising interest rates are rolling out. Preparations to minimize the impact are underway, with downsizing affecting departments and budgets. However, companies are projected to vastly increase their cybersecurity budgets to address the ever-evolving cyber threats. It’s been reported that companies are ready to spend whatever it takes to prevent and prepare for cyber attacks. However, there are more effective first steps to shore up cybersecurity than throwing money at the problem. A strategic process that begins with evaluation and ends with getting the best cybersecurity products and support will make the company’s defenses stronger and more efficient while getting the most bang for its buck.

Understanding the cost of cyber attacks

One of the biggest challenges for businesses today is understanding and evaluating the cost of cyber attacks and how those costs impact their bottom line. According to IBM, in their report Cost of a Data Breach 2022, “Reaching an all-time high, the cost of a data breach averaged USD 4.35 million in 2022. This figure represents a 2.6% increase from last year when the average cost of a breach was USD 4.24 million. The average cost has climbed 12.7% from USD 3.86 million in the 2020 report.” Further, businesses must consider that the impact of a breach goes beyond financial loss. Companies risk disrupted services, compromised sensitive data, and, subsequently, damage their reputation.

Another obstacle for companies is bridging the gap in understanding and communicating cybersecurity needs between C-level executives, the board, and frontline employees. Together, they must plan to invest and implement an efficient and proactive cybersecurity plan. Executives must understand that an effective cyber security plan needs to be part of the overall organizational strategy. Cybersecurity isn’t just about products, technology, and processes. It also concerns building a resilient cybersecurity culture and mindset.

How much should a company invest in cybersecurity?

Investing in cybersecurity is all about quality – not quantity. Determining how much to invest in cybersecurity will depend on how much risk the organization is willing to accept and the impact a potential breach could have on the company. When planning cybersecurity costs, it’s important to look beyond the initial expenses and consider the long-term investment of resources needed to protect the organization against emerging threats.

After reviewing the financial impact of breaches, most companies will realize they can’t afford to NOT spend on cybersecurity. With constantly evolving threats and the increased use of technology that leaves companies vulnerable, a proactive plan with the solutions and support that meet specific needs can protect a company from a devastating cyber attack.

Finding the best cybersecurity plan for a company

Cybersecurity is a constantly changing field, and what may have been considered top-notch protection last year may no longer be sufficient this year to address evolving threats. Therefore, periodic reviews and assessments are important for keeping the organization safe from cyber threats. The first step in strengthening the company’s cybersecurity defenses is to evaluate all existing security measures. Scrutinizing products and processes will help identify any weak points or vulnerabilities in the system. Once a thorough evaluation has occurred, it’s time to determine what resources the organization needs. A reputable cybersecurity provider can help determine what specific products are suitable for the organization and provide guidance on the best way to use them. Finding support from a company that is an expert in their industry is important when choosing a cybersecurity provider.

Invest in the right cybersecurity plan for 2023

Realizing that cybersecurity requires a financial investment, which may be more or less than the organization’s current spending, is key to creating an effective plan. DefenseStorm advises its clients to go into the planning process with a proactive mindset and focus on “doing the right things – right.” Taking steps to evaluate and strengthen the organization’s defenses will help protect it from malicious attacks and preserve business continuity. With a thorough assessment of the current security measures, an understanding of what products and services best address the organization’s needs, and ongoing support from knowledgeable professionals, the company can stay one step ahead of cyber attacks while also keeping the budget in check.

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About Author

Steve Soukup has served as Chief Executive Officer since 2020 and in that role is responsible for leading all aspects of the company’s business. He is passionate about building a community of trust among our teams and with our customers while also enabling our customers to do the same with their accountholders. Steve joined us as Chief Revenue Officer in May 2017 with a charge to drive growth for the business while leveraging his extensive experience serving the banking vertical. He was promoted to President in October 2019 and then to CEO in April of 2020. Under his leadership, DefenseStorm has set the standard for cyber safety and soundness within the banking vertical. Steve has built world class customer-focused sales teams that have delivered double-digit year-over-year profitable revenue growth in fast paced and competitive environments. His background includes shaping a 100+ sales organization at e-banking leader Q2 to deliver 30% year-over year revenue growth, as well as leadership positions at Intuit, S1 Corporation and KPN. Steve also has direct banking experience through management positions at Key Bank, BankBoston and State Street Bank. Steve is a graduate of Boston College and earned a Master of Business Administration degree from Boston University. A native of Cleveland, Ohio, Steve and his family have called the Atlanta area home for over 10 years.