Can you Valuate Your Cybersecurity?

This is not a trick question: How valuable is your cybersecurity? The answer is not necessarily a dollar figure, but most CEOs don’t look at the tangible value. Cybersecurity is a necessary expense, which you can easily forget it’s there when it’s effective. When it’s not, you’ll know it.

In the annals of our ITFIRM.COM blogs, we can sound like a broken record when it comes to network security, but there’s an excellent reason to harp on it. In this era dominated by digital advancements, nothing is more important. Businesses and organizations are increasingly reliant on technology to drive operations, making them more susceptible to cyber threats.

66% of small businesses are concerned about cybersecurity risk according to Fundera. The logical question is: ”What’s going on with the other 34%?” Of the companies that have concerns, 47% lack the understanding to protect themselves. This leaves them vulnerable to the high cost of an attack.

It’s not hard to convey the tangible value of excellent network, but convincing decision-makers to take on the necessary initiatives can be challenging. The need for protection is clear, but executives want hard data to back up spending.

So, let’s look at some strategies that will effectively show the concrete benefits of strong network security measures. These can help you make the case for stronger measures at your company and help you understand how your investments return value.

Monetary Benefits

It is a challenge to demonstrate the monetary value of digital security measures, but it shouldn’t be. The benefits of good defenses are often indirect and preventive in nature, which makes them hard to see, which differs from tangible assets with direct revenue-generating capabilities.

Deciding to invest in robust digital security protocols and technologies is similar to buying insurance policies, except that security is preventative, whereas insurance is reactive – respectively occurring to the Left and Right of BOOM. Insurance can cover you after a disastrous event, but security can keep a disastrous event from happening. They both aim to mitigate potential risks rather than generate immediate financial returns.

Arriving at the exact monetary value of avoided breaches or data loss is elusive – because they didn’t happen, making those potential costs hypothetical. They're also contingent on the success of the digital defense mechanisms in place.

How do you even attempt to measure success based on incidents that do not occur? This complicates efforts to attribute a clear monetary value. As a result, companies grapple with finding metrics that effectively communicate this economic impact.

Here are several ways to translate successful cybersecurity measures into tangible value.

1) Quantifying Risk Reduction

How do you best showcase the value of network security? By quantifying the risk reduction. Companies design security initiatives to mitigate potential threats, so analyzing historical data and threat intelligence can provide concrete evidence of how these measures have reduced the likelihood and impact of incidents.

2) Incident Response Time Measurement

In minimizing damage, a quick response time is paramount. Metrics that highlight incident response time can serve as a key indicator by illustrating the effectiveness of your defensive efforts.

It’s fairly easy to estimate downtime costs and correlate those to a reduction in the time it takes to detect and respond to a security incident. This demonstrates potential savings based on faster response.

According to Pingdom, the average cost of downtime is as follows:

Up to $427 per minute (Small Business)

Up to $16,000 per minute (Large Business)

3) Analyze the Financial Impact

Security breaches typically come with significant financial implications, but businesses can quantify the potential losses averted due to cybersecurity measures by conducting a thorough financial impact analysis.

The analysis can include costs associated with:

Downtime

Data breaches

Legal consequences

Reputational damage

4) Mind your Compliances

Aside from general state and federal compliances, most industries have their own regulatory requirements for data protection and network security. On top of industry-specific regulations, here in North Carolina, we have the North Carolina Consumer Protection Act (NCCPA). Compliance with these regulations avoids legal consequences and demonstrates a commitment to safeguarding sensitive information. It is in your best interest to track and report on compliance metrics. This can be another tangible way to exhibit the value of security initiatives.

5) Institute Ongoing Security Awareness Training

The single most significant and common factor in network breaches is human error, which figures in to over 90% of attacks. Use metrics related to the effectiveness of employee training programs in all areas, but especially in Security Awareness Training. This can shed light on how well the company has prepared its workforce. Prepared it to recognize and respond to potential threats. A well-trained workforce contributes directly to the company’s digital security defenses.

6) Use Security Awareness Metrics

Security awareness metrics take you a step beyond estimating training effectiveness. These metrics gauge how well employees understand and adhere to existing security policies by documenting things like the number of reported phishing attempts, password changes, and adherence to security protocols. These metrics provide insights into the human element involved in protecting your data and network.

7) Technology ROI

Everything has its own type of Return On Investment (ROI), and calculating this when it comes to advanced security technologies is a common practice. Showcasing the return on investment (ROI) can be a powerful way to show value. Use metrics that assess the effectiveness of security technologies. Specifically, in preventing or mitigating incidents, such as the number of blocked threats. This can highlight very tangible benefits.

8) Include Data Protection Metrics

Metrics related to data protection are crucial if your company handles sensitive data. This includes monitoring the number of data breaches prevented, data loss incidents, and the efficacy of encryption measures. Showing a strong track record in protecting sensitive information adds tangible value to security initiatives.

9) Metrics for Vendor Risk Management

Most businesses rely on third-party vendors for various goods or services, but these relationships are not without risk, so assessing and managing those risks associated with your vendors is crucial. Metrics related to vendor risk management showcase a comprehensive approach to network security, like the number of security assessments conducted or improvements in vendor security postures.