Gartner forecasts that Australian businesses will increase spending on information security and risk management, surpassing AU$7.3 billion in 2024—an increase of 11.5% from 2023. While spending increases, leadership teams should ensure that any investment aligns with the business goals. By integrating cyber security initiatives with broader business objectives, leadership can ensure that every dollar spent enhances defensive capabilities and protects the company’s assets, reputation, and future. In this context, cost-effective cyber security for business is not about reducing spending but ensuring that investments focus on the right goals.
Information security and risk management spending forecast for 2024
Source: Gartner.
Start with taking reasonable steps to prevent breaches
‘Reasonable steps’ refer to any necessary actions your business must take to meet specific regulatory obligations within your industry. It requires you to understand the regulations governing Australian companies generally (such as the Privacy Act 1988) and your industry (such as the SOCI Act for critical infrastructure).
Meeting your obligations does not mean taking a cookie-cutter approach to cyber security. Every organisation will have different systems and infrastructure, so you must be able to demonstrate that you analysed your infrastructure and have a strategy that makes sense for your business.
Taking reasonable steps ensures your company meets baseline requirements and strengthens your cyber security posture. Starting with regulations and frameworks is a good way to protect your business from attacks and minimise legal repercussions should you experience a breach.
Partnering with a technology success partner can be invaluable in navigating these complexities. They possess deep knowledge of the regulatory landscape and have the expertise to identify the most effective path for your organisation.
Invest in prevention and preparedness
Cost-effective cyber security hinges on preventing and preparing for breaches rather than reacting as they occur. By focusing resources on prevention, your organisation can minimise the costs associated with data breaches, including lost business, reputational damage, and regulatory fines.
Technologies such as firewalls, intrusion prevention systems, and secure network architectures shield your business from cyber threats. The potential savings created by these solutions justify initial investments. Again, getting the most value from your cyber security strategy is not about adopting the technology; you must ensure it makes sense for your organisation.
Preparation and preparedness also include early detection and response procedures. Real-time monitoring tools and advanced threat detection identify and mitigate some threats before they cause more serious harm and financial damage.
Take a dynamic approach to spending
A static budgeting approach is no longer viable in the face of sophisticated threats like AI-driven attacks. Protecting your organisation from modern attacks requires a dynamic approach to spending. Your organisation should regularly assess the cyber security budget to ensure it meets your company’s top concerns and accounts for new threats.
As cyber threats evolve, it becomes crucial to allocate resources where they are most needed to protect data and systems. This might mean shifting funds towards emerging security technologies or areas that have recently experienced attacks.
Beyond technology, investing in securing the human factor is also essential. Building a knowledgeable and vigilant workforce contributes to a stronger cyber security posture. Your organisation should invest in training and awareness programs that refresh people’s knowledge and educate them on new tactics. Investing in people enhances a company’s defensive capabilities and builds a culture of security awareness that can prevent breaches.
Do not spend more than necessary
Building a cost-effective cyber security strategy includes understanding your company’s top concerns and achieving a balance between cost and security that aligns with the business goals.
Focusing spending on the right areas means identifying the top risks to your business and pinpointing the most sensitive or critical information that requires protection. This approach ensures your organisation allocates spending where it is most needed rather than adopting a one-size-fits-all approach.
Leadership can avoid unnecessary or redundant investments in technology and services by prioritising cyber security efforts based on specific organisational needs. This strategic approach allows more deliberate and effective use of the cyber security budget.
Consider cyber insurance
The ‘Global Cybersecurity Outlook 2023’ from the World Economic Forum found that smaller organisations are more likely to report they did not have cyber insurance (48%) compared to larger organisations (16%), which may leave them more vulnerable to the financial impacts of an incident.
Cyber insurance covers some of the costs of a cyber security incident. By covering some expenses, cyber insurance prevents your business from bearing the full brunt out of pocket. This coverage can be particularly valuable in mitigating costs associated with legal fees, fixing infrastructure, and recovering compromised data.
It is important to note that as the volume of cyber-attacks has increased yearly, cyber insurers have also tightened their customer requirements. Many insurance providers now require client organisations to adopt cyber security frameworks or measures, such as endpoint detection and response (EDR) systems.
Conclusion
Cost-effective cyber security truly begins with focusing on the activities that make the most sense to your business and working from there. Taking reasonable steps to improve cyber security, preparing for an attack and identifying the top risks to prioritise spending can strengthen the organisation’s defence against cyber threats.
Incorporating cyber insurance into your security strategy offers additional financial protection against incidents. However, it’s important to view cyber insurance as a supplement to, not a substitute for, proactive security measures.
Netier can guide your cyber security strategy
The team at Netier can help your organisation develop a cost-effective cyber security plan. We implement tailored governance frameworks and expert cyber risk management to enhance resilience and develop response capabilities to maintain continuity in the face of cyber incidents. Our solutions focus on deploying cutting-edge technology and educating users to elevate your organisation’s protection. Visit our Cyber Security and Managed IT page for more details on how we work.
