How to Efficiently Allocate Cybersecurity Funds

 

The economy has become more reliant on digital assets than ever before. Cybercrime is at its highest. The cost and consequences of data breaches are on the rise. 

This means we have to give more consideration to cybersecurity when developing security budgets for the next fiscal year. Having cybersecurity in your budget is essential for several reasons, given the increasing complexity and severity of cyber threats: 

• Proactive Defense – Detect and stop threats before they cause significant damage with vulnerability assessments, firewalls, etc.  
• Risk Managment – Minimize potential losses by having a plan and resources in place prior to a breach 
• Compliance – Many industries have regulations requiring that a certain level of cybersecurity measures must be utilized for organizations. Failure to comply may result in legal and financial repercussions. 

Typically, budgeting discussions begin a few months prior to a new fiscal year, the most common being January 1^st-December 31^st.  So, we’re going to take a deep dive into security budgeting and provide some insight on incorporating cybersecurity into your discussions. Being proactive with cybersecurity pays off greatly in comparison to reactive measures. Save your reputation, finances, and vital data by applying the information shared in this quick read.  

Factors to Consider When Making Cybersecurity Budget Decisions 

Assessment of current security posture 

• How recently did you perform a penetration test, vulnerability scan, compliance audit, or other form of assessment? 
• How secure is your network? 

• Have you performed regular employee cybersecurity training? 

Industry regulations and compliance requirements

• What do your industry regulations require of your organization? 
• How do you measure and report cybersecurity breaches? 

• What are the consequences for breaking compliance? 

Organizational size and complexity 

• What kind/How many confidential records is your company responsible for? 
• Are there repercussions if the data is breached? 

Previous security incidents and vulnerabilities

• Have you had any recent security incidents? 
• How did (or how could) a cybersecurity breach affect your client/stakeholder relationships? 
• Do you have information that someone else wants? 

Key Components of a Cybersecurity Budget  

Personnel and Training 

• Hiring skilled cybersecurity professionals. 
• Training and certifications for the team. 

• Educating employees about security best practices. 
• Conducting simulated phishing exercises. 

Technology and Tools 

• Investment in security software, firewalls, antivirus programs, etc. 
• Advanced threat detection and prevention solutions. 

Infrastructure 

• Secure network architecture. 
• Encryption and data protection measures. 

Incident Response and Recovery 

• Developing a robust incident response plan. 

• Allocating resources for post-attack recovery. 

External Services  

• Managed security services. (day-to-day security providers) 
• Third-party audits and penetration testing. (ethical hackers) 

The World Economic Forum found that 95% of cybersecurity incidents occur because of a human error. Those human errors can occur in any of the key components listed above, at any time throughout the year. All hope is not lost though! Use the steps below as a framework for mitigating risk with a thorough security budget.  

If we had to break it down into 3 steps…  

1. Risk Assessment 

• Identify risks and their potential impact based on  
• Determine risk tolerance levels based on current cybersecurity practices 

2.  Prioritization 

• Allocate resources based on the severity of risks 
• Balance prevention, detection, and response 

3. Long-Term Planning 

• Incorporate scalability for future growth 
• Consider evolving technologies and threats 

Reevaluate and Monitor as the Year Progresses 

• Perform regular evaluation of security measures that looks at technology infrustructure changes, business growth, new threats/vulnerabilities, regulatory changes.  

• Adjust the budget based on the changes discovered, and make notes to include inthe next budgeting discussion.  

Security Budgeting in Action 

Organizations that effectively manage security budget reap major benefits such as  

• Employee awareness of cybersecurity risks increased, leading to fewer security incidents caused by human error 
• Incident response time was minimized, minimizing the impact of potential breaches 

• Improved security posture enhances client trust and facilitated new business opportunities. 

When organizations take a proactive approach to cybersecurity it can lead to a significant reduction in harmful cyberattacks and data breaches.  

Want to learn more about squeezing more from your cybersecurity budget? Schedule a consultation to discuss the needs of your organization, or send over your questions in an email to info@zelvin.com