Cybersecurity expenses encompass a wide range, including hardware, software, human resources, consulting, and training services. With the escalating frequency and severity of cyberattacks, organizations are proportionately boosting their investments in cybersecurity.
Recent studies forecast that by 2025, cyberattacks could cause annual damages of approximately $10.5 trillion, marking a staggering 300% increase from the figures recorded in 2015. Correspondingly, a Gartner report projects that global spending on cybersecurity will reach $232.1 billion by the same year.
It’s crucial to recognize that cybersecurity budgets vary based on the size and nature of an organization, as well as its specific security risks. Viewing cybersecurity spending as an investment rather than a mere cost is vital. Effective cybersecurity safeguards an organization’s assets, reputation, and business continuity.
To formulate an effective cybersecurity budget, consider the following steps
- Assess Current Needs: Identify potential risks and vulnerabilities to understand your current information technology security landscape.
- Prioritize Needs: Evaluate the potential impact and likelihood of security breaches to prioritize your efforts effectively.
- Cost Determination: Estimate the costs involved in implementing and maintaining information technology security measures.
- Budget Allocation: Set aside funds for both immediate and long-term information technology security initiatives.
- Integrate into Company Budget: Include the cybersecurity budget in the overall company financial plan. Engage various departments to understand their information technology security needs and inform them about the year’s plans.
- Regular Review and Adjustment: Periodically reassess and modify the budget to align with the evolving security risks and needs of the organization.
A commonly accepted guideline is to allocate 20% of your total IT budget to information technology security. If your allocation falls below this threshold, it’s advisable to reassess and fully comprehend the potential risks you might be exposing your organization to.
Another critical aspect to consider is the return on investment (ROI) from your information technology security spending. It’s important to understand and ensure that the ROI on your information technology security investments is in line with industry standards and comparable to what your peers are investing. This involves evaluating the effectiveness of your cybersecurity measures in terms of risk reduction, compliance, and overall security posture improvement, as compared to the investment made.
You have any questions or need further assistance, feel free to contact us.
