It’s less costly to prevent cyber attacks than it is to mend the damage when they happen. Many companies lose money due to cyber attacks like piracy, data breaches, and litigation all the time. There are even some unavoidable situations that accountants cannot rather put a dollar figure on; for example reputational damage, which makes consumers less liable to buy company’s products and services in the future.
Expenditure on protection services has reached $64.2 million in 2019. Also, expenditure on infrastructure security is at $15.3 million, and businesses have spent $13.2 million on network security tools.
Both on buildings and in the cloud, everything is digital today, so cyber-security personnel, and security measures are things you have to spend money on. It’s quite complex to determine the real budget for security and how to spend it?
According to Igor Kaparis (the CEO of International Fintech), “Cyber-security is significantly harder, as there just isn’t adequate good data. By the period we get some data, we don’t have adequate data for a new threat model. So it’s hard to form annualized loss expectancy models.”
There are many factors which influence a company’s cyber-security budget.
Here are some important things to consider:
· Your business and its size
· Agreement and rule mandates affecting your business
· The data sensitivity (collect, use and share)
· Requests from business stakeholders or customers
The actual sum companies spend on cyber-security is usually tied to their IT budget. Estimates of what business presently pay vary, ranging from an extra 5.6% to 20% of the total IT spends. Keep in mind there is no one-size-fits-all answer when trying to determine what a “distinctive budget” looks like, thus if you have not had a cyber security budget earlier then try adding a small amount into your 2020 numbers. A little investment can go a long way.
The cyber-security personnel can often help you determine the highest-priority – and lowest-cost – things to manage with a restricted budget. From there, it will be easy to shape a cyber security program, to provide improved protection, and help lessen risks.
The bottom line
Cyber-security needs to be a part of your company’s budget. However, it is crucial to note that cyber-security protection is not only a purpose of money spent. An inclusive program does not have to cost high, however, it does need prioritization and assurance from management, and employees.
On the other side, no matter how much amount a company gives to strengthening its cyber-security position, there is no such thing as a 100% assurance of protection. A company’s top bet is to deploy a complicated, constant cyber-security program using a blend of resources, training and time to help keep them cyber-powerful and to potentially lessen costs in the case of any episode.
In the future, cyber-security will be a top matter on all companies’ profit and loss sheet. Just as if small businesses make a cost for their accounting software or making alarm system into their finances, they have to begin including cyber-security as a regular expense and business precedence. The expenditure of an inclusive cyber-security program is a small cost to pay for the peace of mind you will have knowing your business is highly protected.