Cyber Security Spending. The Importance of an IT Security Budget
Summary: This 3-minute article explores IT security budgets for small businesses. Many SMBs do not plan their cyber security spend as a percentage of revenue. Learn about creating an IT security budget. Effective cyber security requires multiple layers of defense, ongoing scrutiny of your computer system, and employee training. Contact DIGIGUARD CYBER SECURITY at 833-33-CYBER (833-332-9237) or visit www.DIGIGUARDsecurity.com to schedule a cyber risk analysis and discuss a wide array of innovative solutions to ensure your SMB has the best possible small business cyber threat protection.
IT Security For Small Businesses
Cyberattacks continue to “ramp up” as our connected world grows daily. As a result, the need for a robust security plan is here to stay. All businesses must accept that cyber security is now a critical line item in every company’s budget. However, it is essential to have appropriate security in place before an attempted cyberattack and to understand the risks of not being secure enough.
Unfortunately, many SMB owners believe that hackers won’t waste their time on small businesses. However, the opposite is true; Cybercriminals view small to midsized companies as the “low-hanging fruit” and, therefore, easy targets. In addition, hackers count on SMBs not having sufficient cyber threat protection. Unfortunately, the fact is that almost 70% of small businesses have experienced cyberattacks.
Before creating a budget for cyber security, you must first define your goals for cyber threat protection. To determine your goals, you might consider hiring IT experts to ensure you have a good sense of everything important to your business. Small to midsized companies should consider these areas of concern:
- Comprehensive Scanning and Testing – Start by identifying problems early.
- Employee Training – All your employees must be on the same page, making them less likely to fall victim to cyberattacks such as phishing and social engineering.
- Network Vulnerabilities – Identify your network’s weak spots and consult an IT professional for innovative solutions for protecting endpoints and other opportunities for hackers.
- Website Security Management – Website security includes both your company’s domain and other websites frequented by your organization.
- Risk Assessment, Incident Response and Continuity Planning – In addition to performing risk assessments in advance, it is just as important to have a coordinated response and continuity planning to keep your business operational or get it back up as soon as possible.
- Cyber Security Insurance Policy – Purchasing a cyber insurance policy based on your SMB’s needs is also appropriate. The cost of a cyberattack more than justifies the need for insurance.
- A cyberattack doesn’t just affect your company. It can also compromise the private data of your vendors and customers, increasing the costs of attacks and creating the possibility of lawsuits from third parties who suffer losses due to a data breach and the legal fees required to defend against them. Here are some of the potential costs of a cybercrime:
- IT solutions and repairs
- Monetary theft
- Legal and public relations
- Costs of restitution for identity theft restoration and short-term credit monitoring.
- SMB downtime
- Loss of customers
- Brand and reputation damage
- A cyberattack doesn’t just affect your company. It can also compromise the private data of your vendors and customers, increasing the costs of attacks and creating the possibility of lawsuits from third parties who suffer losses due to a data breach and the legal fees required to defend against them. Here are some of the potential costs of a cybercrime:
IT Security Budgeting
IT Security Budgeting is very specific to your company’s size and needs. Although many finance executives plan cyber security as a percentage of their IT budgets, the formula is not just about the numbers. Small business owners must weigh the financial repercussions of not having enough cyber threat protection.
The topline considerations in formulating a budget:
- The Nature of Your Market and the Size of Your Company –
- Are you in a high-compliance market?
- How many customers do you have and where are they located?
- What are your potential business revenue losses in the event of a major data breach?
- Pressure From Customers – Regardless of your market, customers expect you to have proper cyber security.
- The Level of Confidentiality – Businesses such as law firms, medical practices and accounting firms are expected and required by law to protect confidential client data. Therefore, for those types of businesses, having robust cyber threat protection is essential to doing business. A serious cyberattack could force a high-compliance company into bankruptcy.
The harsh reality is that even a sizeable cyber security budget cannot guarantee your SMB will not fall victim to an attack. Therefore, the goal is to add as many layers of security as possible. Also, employees must be trained and on the same page in applying best practices to help protect your business from a data breach.
Creating an appropriate cyber security budget might not be a do-it-yourself proposition. If you are writing a budget for the first time, it is a good idea to hire IT professionals who will be able to analyze your computer system for vulnerabilities and identify what steps should be taken.
DIGIGUARD’s Innovative Solutions For SMBs
As your SMB grows, expands its network and adds more platforms and devices, such as Bluetooth devices, smart controls and wireless remote, your network’s vulnerability grows, too. DIGIGUARD specializes in proactive cyber threat protection and network security and has a wide array of solutions for small to midsized businesses to defend against cyberattacks and other network data breaches. They are cyber security experts who can help you create a cyber security budget and help you ensure your confidential personal, business and financial data have the best protection possible. Furthermore, they can help establish cyber security best practices and provide employee training so your employees can spot cyber threats and not inadvertently expose your company to a cyberattack. That training will work in tandem with the rest of your cyber protections so that everyone knows what they must do to prevent a data breach and precisely what to do in the event of a real cyberattack. DIGIGUARD’s services in cyber security are up-to-the-minute and cost-effective. They will enable SMB owners to concentrate on operating their businesses without fear of a data breach crippling their operations.
Contact DIGIGUARD CYBER SECURITY at 833-332-CYBER (833-332-9237) www.DIGIGUARDsecurity.com to discuss the best cyber threat protection for your SMB before you face a deadly cyberattack.