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Sanjiv Cherian, Cyber Security Director
Aug 20, 2023
Cybersecurity. Everybody talks about it in today's digital age, from individuals to businesses. We've even set aside an entire month to raise awareness of the need to invest in cybersecurity. Cybersecurity Awareness Month is held every October, providing opportunities for data and information officers across organisations to push for board-level cybersecurity buy-in.
Of course, you can't blame chief information officers for these appeals. According to FBI statistics, cybercrime rates have increased by 300% since the pandemic. SonicWall estimated over 700 million malware attempts in 2021 alone, with one attack occurring every 11 seconds. However, it's not just the worrying frequency of these attacks. The financial costs are also quite astonishing.
Data from the Cybersecurity Ventures project that cyber attacks will cost companies over $10 trillion by 2025, up from the $3 trillion mark in 2015. Regardless of petitions from information officers, corporate executives typically fail to appreciate the need for a comprehensive cybersecurity program in their organisations. Those who eventually bulge often invest in cybersecurity infrastructure as a grudge purchase instead of an investment necessary for businesses in the digital world.
Why are top-level managers reluctant to see the need for cybersecurity, and how can data officers convince them otherwise?
This article explores reasons executives might drag their feet on issues concerning cybersecurity for companies and how to address such scenarios effectively.
Key Points
The "Grudge Purchase" Perspective
Data is an invaluable resource for today's businesses. It's crucial to the growth and existence of many corporations. Yet, few companies invest in securing their data infrastructure.
Why are so many business executives averse to investing in company cybersecurity, with some even treating it as a grudge purchase?
Here are some of the reasons company boards refuse to incorporate cybersecurity systems into their corporate infrastructure:
The Money Problem
Despite being an invaluable requirement for modern businesses, cybersecurity can be a pricey investment. Company executives are often less concerned about the importance of cybersecurity in business and more worried about the implementation and maintenance costs of cybersecurity infrastructure.
These concerns are prevalent among small businesses that don't have the finances for high-grade cybersecurity systems. After all, cybersecurity infrastructure doesn't generate revenue, and increasing revenue is a more significant priority for SMBs than any other objective. As such, it makes more sense to invest funds in revenue-generating ventures than cybersecurity systems that could eat deep into company finances.
Not Enough Knowledge of Security
Although senior management executives know why cybersecurity is important for business, they often don't know much about the required systems and processes. Cybersecurity procedures and infrastructure can often seem complicated to the uninformed. Besides, the complex nature of cybersecurity tech and processes can often hinder corporate executives from buying into cybersecurity implementation.
Change-Averse Management
Brands and businesses often prefer to play it safe and not extensively explore the benefits that cybersecurity offers their operations. Depending on the industry, your company may not readily come under a hail of cyber fire from bad actors, so the possibility of experiencing a direct threat or data breach is minimal. Therefore, management might not be convinced of the need to invest in cybersecurity. Buy-in could then be in fulfilment of regulatory requirements or as a formality.
The Investment Perspective
Most corporate boards consider cybersecurity investment a grudge purchase. On the other hand, others consider it an invaluable asset, and for good reason. The rise in global cybercrime and the resulting financial losses from cyber attacks mean cybersecurity is a non-negotiable venture for businesses worldwide.
Why is cybersecurity important for companies? Here are some of the most significant reasons many businesses consider cybersecurity an invaluable investment:
Asset Protection
A few years ago, asset management and protection was a priority for medium and large-scale brands that generated significantly huge digital assets. However, with data and digital technology as a core part of businesses worldwide (regardless of size), every corporate venture is just as vulnerable to cyberattacks as the next. Businesses that understand this reality place a premium on cybersecurity as a non-negotiable, long-term investment to safeguard their digital assets rather than a negligible option.
Regulatory Compliance
As cybersecurity threats increase, cybersecurity buy-ins have become mandatory for businesses worldwide. Considering the effects of a single data breach, regulatory standards and frameworks now require companies to take necessary steps to safeguard consumer and corporate data. Failure to adhere to these regulations often results in severe fines and corporate penalties.
Risk Management
Cybersecurity buy-ins are arguably the best risk management strategy a business can utilise to navigate the current digital market successfully. Virtually every business today leverages digital tech systems. As such, there's always the threat of a data breach, especially with cybercrime attempts skyrocketing in recent years. With that in mind, it’s always best to invest in a cybersecurity model that helps to eliminate cybersecurity risks in business.
Brand and Reputation Protection
Consumers today tend to trust businesses that invest in solid cybersecurity systems. Data breaches involving top companies in recent years have affected millions of individuals, with private records often finding their way to the wrong hands. As such, consumers are more cautious about the companies they do business with, especially corporations that require them to share their private data.
For many businesses, incorporating robust cybersecurity models into their operations is a significant step to establishing themselves as a trustworthy brand.
Why You Need to See Cybersecurity as an Investment
Cybersecurity has always been a crucial investment for businesses. However, its importance has grown immeasurably over the past two decades, especially with the increase in cybersecurity attacks worldwide.
To put things in perspective, statistics from Cybersecurity Ventures show that one cyber attack occurs worldwide every 36 seconds.
For businesses, the figures are also quite alarming, with Accenture's Cost of Cybercrime Study reporting that small firms are the target of 43% of cyber attacks. Interestingly, the financial costs of these attacks supersede the purchase of cybersecurity buy-ins significantly, with companies losing trillions of dollars over one breach.
Still unsure why cybersecurity is an investment you should consider? Here are some other consequences your firm is exposed to without data security infrastructure:
Financial Losses
Monetary losses are the most prevalent consequences of a data breach. Based on data from IBM, the average cost of a data breach in the US is $9.4 million. The healthcare industry alone experiences over $10 million in losses due to cyber-attacks. In other words, failing to invest in adequate cybersecurity models could have a significant financial impact on your firm if or when a cyber attack occurs.
Damage to Brand and Reputation
While data breaches constitute an inevitable financial loss to the company, public perception quickly nose dives if management isn't investing in cybersecurity quickly enough. Imagine customers finding out that their data got sold on the dark web due to some vulnerabilities in the system. The damage to a company's reputation would be instant and far-reaching. Most companies rarely recover from such incidents. As such, robust cybersecurity investments are a safety net against ruining the fabric of trust between you and your customers.
Legal and Regulatory Penalties
Corporate regulations in the US currently demand full compliance from companies regarding basic cybersecurity housekeeping. Investing in cybersecurity signifies that a business is taking its digital risk management seriously. That's essentially the best way to avoid regulatory penalties. Regulation is a resounding effort by authorities to ensure that top-level executives actively support business investment in cybersecurity.
Wrapping Up
Cybersecurity is an essential risk management investment for 21st-century businesses. However, management teams are typically reluctant to incorporate cybersecurity systems into their operations.
Information officers across industries have probably grown tired of hearing the question, "why is cybersecurity important for companies?" at board meetings. The reluctance from senior executives often stems from the perceived high cost of implementation and maintenance or inadequate knowledge of cybersecurity systems.
Most companies that make the necessary cybersecurity investments often treat it as a grudge purchase. Regardless, the worldwide increase in cybercrime means cybersecurity is an invaluable investment to safeguard your company's reputation and consumer/corporate data.
Buy Into Cybersecurity With Microminder
Most C-suite executives have little to no knowledge about cybersecurity systems and solutions. As such, they may need help figuring out how to invest in cybersecurity for their businesses.
Fortunately, that's where Mircominder comes in.
Microminder is Britain's number one cyber risk management and managed security service firm, with over three decades of helping 2,400 customers (from startups to large enterprises) with cybersecurity solutions and systems.
Our services are as comprehensive as they come, with penetration testing, compromise assessments, supply chain security, and dark web monitoring forming a core part of our offerings.
We will assess your firm's current cybersecurity posture to discover possible weaknesses and establish the appropriate compliant safety infrastructure to protect your data and digital assets from the ever-growing threats in today's world. With Microminder, you can rest easy knowing your and your clients’ sensitive data is safe from cybercriminals.
Contact us today to speak with one of our security experts and learn how we can help protect your business.
Don’t Let Cyber Attacks Ruin Your Business
Call: +44 (0)20 3336 7200
Call: +44 (0)20 3336 7200
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FAQs
What Are the 3 Main Pillars of Cyber Security?
The three main pillars of cybersecurity are people, processes, and technology. All three must work together in an organisation to deliver robust data and digital asset protection.What Types of Security Problems Can Be Encountered by Businesses?
The most common security threats experienced by businesses globally include phishing, ransomware, malware, and insider threats. Interestingly, small businesses are usually the targets of these attacks since they lack the resources to establish solid security systems to safeguard their digital assets.What Is the Biggest Threat to Cyber Security?
The biggest cybersecurity threat is its human component. Humans are more susceptible to vulnerabilities than technologies and processes. For instance, humans make errors from time to time that can give attackers opportunities to unravel any process or technological model available.Unlock Your Free* Penetration Testing Now
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