Costs associated with cyber security are rising. When you consider the dangerous landscape of today and how quickly it may change, this is hardly surprising. We are more dependent on technology across all business sectors, which gives hackers greater possibilities to steal data, hold systems at ransom, and generally wreak havoc on the businesses they target.

Many businesses are not making enough investments in their cyber defence despite the rising risk of cyber catastrophes. The Cyber Security Breaches Survey 2022’s findings revealed some unsettling facts regarding the efforts taken by enterprises to recognise and defend against cyber-attacks and data breaches.

17% of organisations have done an audit of their cybersecurity vulnerabilities in the last 12 months.

17% have had cybersecurity training for employees in the last 12 months.

34% have business continuity plans that cover cybersecurity.

So, is simply spending money on a problem the solution? Yes and no. Yes, businesses should take the problem seriously and make sure they have enough money set aside to invest in cybersecurity. But on the other hand, how and where the money is invested to achieve the greatest good is more important than simply the amount. The secret to making the most use of your budget is to understand the cyber vulnerabilities within your firm.

Now, Mr. CEO, How Does The Price of That IT Upgrade Look?

Of course, no one enjoys spending money on “infrastructure” upgrades like IT upgrades. Spending money on a new website can open up new options for your business and (ideally) offer you an edge over your rivals. simple investment. The benefits of an office renovation may be seen every day, boosting employee morale and attracting clients who stop by the office. This is another “easy” expenditure that provides an immediate, observable return on investment. However, NO ONE enjoys shelling out thousands of pounds for simple IT updates – UNTIL it all brings your company to a stop at the worst conceivable time.

You might be excused for believing that cybersecurity isn’t important if you own a small business. If you’ve observed the media coverage of hacks on major organisations, you could decide that your company isn’t at risk. Sadly, that isn’t the case. There is no size too small or huge for a firm to be targeted by cybercrime. According to research, 43% of all data breaches affect small firms. Smaller companies can also be a tempting target because they might not have the appropriate cybersecurity to protect their data.

A security that is strong is always worthwhile. In addition to the very significant immediate financial costs of cybercrime, confidential data exposure can cause long-lasting harm to your company’s reputation. This could have an impact on your capacity to conduct business in the future, particularly if you work in a field that deals with extremely sensitive data, like financial services or healthcare. If prospective consumers have any doubts about the security of their personal and financial information, they may hesitate to provide it.

What Should You Budget For IT Then?

A TechTarget analysis found that the average amount of revenue spent on IT costs by businesses with less than £40 million in annual revenue is 6.9%. However, given the rising frequency of cyberattacks and the necessity for regulatory compliance, such expenditures must be raised in order to simply prevent a significant loss. Another survey by Capterra revealed that 75% of SMBs expected to spend 10% to 20% MORE on software and IT in 2023 than they did in the previous year. A MASSIVE rise.

What do they use it for? Without any question, one of the major areas of rise in spending is cyber security, which is driven by compliance rules and risk management. Providing employees with more adaptable (but secure) options to work from home, on the go, or in the office is another. And finally, a lot of businesses are investing in any technology that may lessen their need for expanding their personnel. Overhead moves on two legs, so any time a company can boost production without hiring more staff, it’s a gain.

 

A Good Return On Investment

By preventing or lessening the effects of an attack, good cybersecurity provides a positive return on investment (ROI). According to the UK Government’s Cyber Security Cyber Breaches Survey 2022, 39% of UK businesses reported a cyberattack in the previous year. Additionally, there was an average estimated cost of £4,200 for those firms that reported a substantial impact, such as a loss of money or data. However, this amount increased to £19,400 when just medium and large firms were taken into account. Even worse, 60% of small businesses shut down within six months of a cyberattack, according to a TrendMicro report. 

In addition, a different survey revealed that 83% of small and medium-sized enterprises lack the financial resources necessary to recover from a cyberattack. According to a report by the European Union Agency for Cybersecurity (ENISA), 57% of surveyed small and medium-sized businesses acknowledged that they would probably go out of business as a result of cybersecurity difficulties, and 85% agreed that these issues would have a major impact on their operations.

Even if your business manages to survive the attack, cyber crime may be extremely expensive. According to a Cisco survey, 40% of small businesses that suffer a serious cyberattack were out for at least eight hours, which contributed significantly to the overall cost of a security breach. 

Therefore, even a minor investment in cybersecurity today will pay off in the long term by saving you money. So, cybersecurity is unquestionably worthwhile when you take into account the cost of cybercrime and the increased number of attacks.

Questions for the board of directors to ask:

1. 1. In terms of data, systems, and processes, what are our most important assets that must be safeguarded?

1. 1. What cybersecurity capabilities do we now have?

1. 1. Do any functionalities exist in our present tools that aren’t being used?

1. 1. How much additional expenditures will be made to current processes?

1. 1. Could a tool be decommissioned if a new one overlaps and provides higher security?

1. 1. Will the tools we buy be properly used and maintained by current employees? Alternatively, do we require fresh hires?

1. 1. Should we spend more money on employee cybersecurity training?

1. 1. Which risks should we prioritise, and how much money should we set aside for them?

1. 1. How can we be certain that the cybersecurity resources we have are used where they are most needed?

1. 1. How much risk is the business willing to take on?

Investments must be focused on where risks and capabilities diverge. But identifying and filling holes is just the first step; you also need to make sure that your investment will support your current capabilities as the threat environment changes. If you don’t, you can discover that you are just making more holes and exposing your firm.

You will be able to decide how your security assets should be used once you have a clear image of the assets you need to safeguard. This will assist you in making more informed financial decisions. In order to decide how much money to invest in thwarting cyberattacks, you need also, to the best of your ability, to estimate their potential financial impact.

How We Can Help

From large businesses to SMEs, Workplace Connect provides risk management solutions for every business size and financial situation. We understand that every organisation is different, and we will work with you to choose the best services for your particular cyber risk. Call us right away!