As technology and cybersecurity continue to evolve, it is important for organizations to adapt their budgets over time. What may have been cutting-edge protection five years ago can be ineffective, inefficient, or downright obsolete today. This applies to cybersecurity budgeting practices just as much as the security solutions and tools you implement. Organizations are increasingly looking to cybersecurity vendors to fill several roles, asking for not only defense but true partnership in business growth. Adjusting cybersecurity spending based on this shift is a vital consideration.
Common Mistakes in Cybersecurity Budgeting
Building a cybersecurity budget is not a simple task. It requires in-depth knowledge of your organization’s cybersecurity needs, goals, and available resources, threat trends, and cybersecurity measures and tools. There are many places where it can go wrong, including:
- Not budgeting enough for your needs, leaving your organization unable to afford the necessary security solutions and practices to prevent cyberattacks and enable business operations.
- Skimping on essential updates and replacements in order to save money by keeping outdated software and hardware in use, which can create security vulnerabilities.
- Leaving out incident response plans and preparations for unexpected cybersecurity events, leading to your organization floundering in the event of an attack.
- Failing to reevaluate measures to adapt over time and simply leaving legacy tools in place rather than assessing their usefulness and cost-effectiveness.
- Investing in tools that don’t meet your goals—even the best tool of its class cannot help your organization if you require functionalities that it doesn’t offer.
Evolving Threats Require a New Approach
Over time, new and evolving threats affect the cybersecurity landscape and drive new attitudes regarding cybersecurity and budgeting. A wide range of threats have risen in recent years due to factors like the COVID-19 pandemic and the growth of remote and hybrid working environments, AI technology, and cloud architecture. The complexities of digital infrastructure have created a landscape ripe for cybercriminals to take advantage of.
The same technologies that enable business operations also enable more sophisticated cyberattacks. With the use of AI and machine learning, bad actors can launch more effective attacks, including major threats like ransomware and phishing. Traditional cybersecurity strategies often don’t quite cut it against these emerging and evolving tactics.
Beyond that, the use of cybersecurity tools has evolved to serve more functions than just preventing attacks. While recent trends in cybersecurity budgeting have focused on ensuring ROI, consolidating vendors, and minimizing business disruptions, there is now a push to do more. Cybersecurity budgets increasingly must account for the growth and innovation of the enterprise, and cybersecurity tools are being adopted as much for business enablement as defense.
Data-Driven Budgeting and Prioritizing Investments
To make informed decisions about your cybersecurity strategy, it’s crucial to use a data-driven approach to quantify risks and determine the need for cybersecurity tools. Obtaining data using risk assessment tools like Factor Analysis of Information Risk (FAIR) or <href="#1-data-driven-decisions-and-prioritizations">Cyber Risk Quantification (CRQ) can help organizations find the parts of their networks and other resources that are most under threat.
This knowledge can then be used to prioritize investments in security tools based on the level of risk. Technologies like AI and the cloud are prime targets for cybercriminals, and protecting endpoints is as important as it has ever been. This is why it has become more important to invest in tools that facilitate the safe adoption of AI, integrate security into software, and help to evaluate security effectiveness and efficiency. Allocating budgets based on up-to-date threat trends is an important step in building a cybersecurity strategy that protects against threats and enables business growth.
Balancing Innovation and Operational Security
With as many as 42.6% of organizations increasing their cybersecurity budgets by up to 30%, the cybersecurity budgeting landscape is shifting. Cybersecurity is deemed more essential, especially as companies are increasingly calling on cybersecurity tools to help with business growth in addition to protection. Organizations are looking for security vendors that can be true partners, prioritizing innovation and scalability.
In order to foster a successful balance between innovation and security, companies are encouraged to invest in data-driven initiatives with cost-effective tools and measures. It’s important to evaluate your security landscape, define your goals, prioritize risks, and allocate your budget to protect the most sensitive and vulnerable assets. It’s also vital to regularly reassess your cybersecurity strategy to ensure ongoing protection and efficiency.
“C-level executive activity is designed to change the world in a measurable way. CISOs, however, are doing the opposite: changing the world away from one with material incidents to a world with far fewer incidents,” shared Andy Ellis, partner at YL Ventures. “In a sense, CISOs are more like the General Council, keeping the company away from dangerous outcomes. Unfortunately, cybersecurity needs are more deeply intertwined with every business and technical decision in modern corporations, and the heightened expense to satisfy those needs won’t let CISO budgets be viewed as just a cost of doing business. This means we’re going to need to find a way to demonstrate the value those budgets are providing.”
Striking the balance between growth and security is also a question of choosing the right vendors. It’s important to do your due diligence and research to find cybersecurity vendors to be partners in your business growth as well as provide protection from threats. Forging partnerships with reliable cybersecurity vendors can help your organization achieve effective security and enable innovation and growth.
