There is no doubt that technology has contributed immensely to the recent global economic developments. Today, many financial organizations use technological advancements such as computers to collect, store, and share data efficiently. Technology has indeed provided the most effective ways of managing and securing data. However, cybersecurity has remained a significant challenge facing proactive companies across the world. Many of these organizations, especially those that embraced technology in their operations without sufficient technical knowledge on developing strong and effective information security measures, have created security gaps that have paved the way for potential security breaches and data theft. In a swift move to control the challenges, companies have established robust financial services to fund research activities to address critical cybersecurity threats. As international research institutions indicate, millions of dollars have been invested in the information technology sector to keep data breaches at bay. Some proactive approaches to cybersecurity include;
- Use of Signature-based Detection Tools for recognizable threats
- Behavioural-based Analytics and Data Sanitization for threats with unrecognized signatures
- Use of Web-based Application Firewalls to block malicious signatures
- Updating Traditional Point Security Technologies
- Network Segmentation among others
Research data shows that international security spending increased from 101.5 billion U.S. dollars in 2017 to a predictable 123.8 billion in 2020 when companies and various organizations place strong cybersecurity measures to prevent cases where company networks and systems are accessed unauthorized individuals and confidential information stolen. In cases where an organization’s overall security systems have been compromised, studies indicate that such companies have been seriously hurt financially, and even worse, others even collapsed. This is why cybersecurity remains a top concern for proactive companies. However, it’s not always about how much is spent on cybersecurity measures, but how intelligently it’s done to minimize risks.
How much money companies invest in cybersecurity to reduce potential risks?
In a bid to completely suppress the consequences of cyber threats, organizations, whether small, medium, or large, have invested in cybersecurity solutions, including technology and human experts. The use of computers in managing data has provided a great need for technical professionals to manage the processes. The technical specialists have been on the front line to research the new trends and tactics used by hackers and develop the best cybersecurity solutions to curb these challenges and the associated consequences. So how much is really being spent to achieve safe cyberspace for business?
To curb cyberattacks’ challenges, which seem to be even more rampant amidst the current global health crisis, companies are on high alert. After all, if large companies such as Marriott hotel chain, Mitsubishi, Twitter, or vaccine maker AstraZeneca can be breached, what chance do proactive companies in the financial sector stand? No chance! This is why spending on cybersecurity is inevitable. For businesses in the financial sector, studies indicate that in 2020, businesses spent 0.5 percent of their global revenue in cybersecurity, compared to 0.3 percent a year ago. This amounts to around 11 percent of the overall IT budget. The cybersecurity expenditures were also calculated in terms of cost per employee. On average, in 2020, it was US$2,700 per full-time employee, compared to US$2,300 in 2019.
Even smaller businesses with limited resources in North America, for instance, invested up to 14 percent of their information technology budget in cybersecurity. The business research estimates that companies worldwide invested approximately $66.86 billion in 2019, representing a growth rate of 9.4 percent since 2015. The projection predicts investments are likely to rise to $91.09 billion by 2023. This is evidence that organizational management is becoming more aware of the emerging data security threats and are determined to stay at the forefront in cushioning themselves against the impending dangers in the cyber threat landscape.
Research indicates that approximately 80 percent of businesses confessed having experienced a security incident, the most common being malware attacks. Among these, 54 percent of businesses lost delicate records due to either internal or external security threats. Other studies also indicate that many proactive companies have had to incur up to US$551,000 to recuperate from the consequences of security breaches, with the average total outcome of the data breaches amounting to $117,000 among the small and medium-sized businesses. These amounts are even higher for larger businesses that have been reported to incur up to $1.3 million to recover from a data breach event. However, the fact is that all companies, regardless of their sizes, find it expensive to fight cyber-attacks. Contrary to the small and medium-sized businesses, there is a considerable greater internal capacity that allows large businesses to balance between expenditure and damages caused when responding to cyber attacks. However, compensation remains a nightmare, with an average of $147K per data breach.
Generally, the average cost of a data breach increased globally. In North America, for instance, the average cost of a data breach for enterprises increased to $1.3M in 2017 compared to $1.2M in 2016. The survey also indicates that information technology security budgets have been rising internationally from an average of 17 percent, with North America reporting 16 percent in 2016 and 20 percent in 2017. The cyber landscape is continuously evolving at a higher speed, making it necessary for businesses worldwide to adjust to remain competitively operational continuously. For this reason, the cybersecurity budgets remain fundamental aspects of every company’s broader financial plan.
So, how can you deal with the cybersecurity challenges?
How you handle your organization’s confidential information remains the greatest determinant of your success. So, it would be best if you did everything possible and within your means to protect your data from being compromised by unauthorized individuals. Your company does not have to go through what eBay went through in 2014 when hackers exposed confidential information about its 145 million users, including birthdays, addresses, and passwords. It would help if you never stopped thinking about your computer systems’ security, nor should you relax because breaches keep happening to even the perceived best global organizations with the best security options.
But how can you achieve this? Start by creating a reactive security measure. Taking a reactive approach means that you have to put certain measures, including creating firewalls, forensic analysis of security events for cybersecurity, and cybersecurity checking solutions to monitor networks for possible attacks.
On the other hand, proactive security measures include penetration testing. You can use white-hat hackers to test IT systems to find and prevent possible weaknesses that can attract breaching. There is also a need for developing cybersecurity programs to facilitate security awareness training where individuals are properly enlightened on various security postures to manage and prevent any form of cyber-attacks.
Call us for your security solutions now!
Have you been experiencing cyber-attacks in your company recently? Or do you want to secure yourself before it happens? Don’t wait until you lose everything, and then take action to be expensive and stressful. It may even ruin your reputation and put your company and customers at risk. We offer the best IT solutions, and we endeavour to make your company’s cyberspace secure. Our cybersecurity experts are ready to answer your questions and provide you with a security program that fits your specific needs. Reach out to us today and add a security strategy to your business plan.