At present, websites are no longer optional which means cybersecurity costs are now part of a company’s annual budget. The advent of the digital age has shifted the purchasing patterns of most consumers towards online options. Likewise, more companies have adopted new technologies to provide a better experience to their customers. Not having a website in today’s landscape leaves your business last place in the race, and not making sure it is secured can do your brand more harm than good.
Building a website can be a significant investment for any company. On average, a basic website can cost anywhere from $5,000 to $10,000, depending on the features and number of pages. Monthly maintenance fees clock in at around $500 a month. These numbers do not account for hardware investments as well as web admin compensation.
Protecting the investment that you made on your website should be one of your top priorities. However, the question still stands – how much should you spend on cybersecurity? This article will explore the breadth and cost of a cyberattack, the factors that determine the cybersecurity budget, and the steps that ensure your website is safe and protected.
Cybersecurity Landscape: The Cost of a Cyberattack
The last few years have seen an increase in cyberattacks across the globe. From 2014, instances of malicious behavior have taken an uphill swing to the tune of 67%. Just last year, data breaches have exposed more than 4 billion records containing sensitive information.
According to research, hacking occurs every 39 seconds. For reference, that’s more than 2000 instances of cybersecurity breaches in one day. Out of these malicious activities, small and medium businesses are targeted 43% of the time. On average, it costs $133,000 for a medium-size company to compensate for a breach.
Significantly during these trying times, $100,000 in costs for businesses can be the difference between staying afloat and closing for good. Without a doubt, it is all the more important to institute and improves cybersecurity measures for your systems.
Industry Average: Cybersecurity Costs
When it comes to spending on cybersecurity, there is no one size fits all. The number of funds allocated to protect a business’s technological assets depends on several factors. Nevertheless, there are industry averages that can determine your budget for your operations.
In 2020, Companies spend 11% of their total IT budget on security. This average cost of cybersecurity equates to about 0.5% of the annual revenue and around $2,000 per full-time employee. This average is almost a full percent higher than the average costs in 2019.
The increase is due to the rise in the number of attacks on the current COVID-19 crisis. Regardless of the pandemic, more companies have committed to building a better stronghold for their website and systems in the next few years.
Factors that Affect Your Cybersecurity Costs
Again, the amount that you should be spending on your website security depends on plenty of factors. Industry averages can help determine your ballpark; however, it is crucial to consider the factors below before committing to a number:
The number of online security breaches is on the rise across all industries, and some verticals are more vulnerable to these attacks.
Financial institutions, construction firms, healthcare providers, and IT companies are amongst the fields that experience the most malicious behavior. Companies within the industries are more susceptible because operations involve sensitive information to provide financial gain to an attacker.
Number of Employees
Employees and the company software and hardware they use can be used by attackers as entry points to access sensitive data. It is quite simple – more employees, more ways to enter the system.
Regardless of the designation, the tools that these workers use should have security measures in place. On average, companies spend around $2000 per employee on cybersecurity.
Utilized Hardware and Software Technologies
The hardware and software your operations use determine the kind of security measure that you have in place. After all, safeguarding your company’s server is different from protecting your website.
Your current hardware and software set-up play a role in determining the amount you should allot for cybersecurity costs. The more hardware and software you use, the better security options you should have.
Set Security Technologies in Place
It is highly likely that your operations already have security measures that are built within the system. Opting to improve these measures by adding funds to your cybersecurity budget warrants your view of your current status quo. Plan a defense strategy by setting an early warning system like our GRED Web Check which can promptly detect threats before it causes irreparable damage.
It is best to review what you currently have before settling on a budget, as this can save you from spending on redundancies.
How to Determine Your Company’s Cybersecurity Budget
Word of the wise: spending more on cybersecurity doesn’t necessarily mean that your investments are better protected. Again, your budget is highly dependent on the kind of operation that you run. Just because a particular security measure is highly-sought after, it doesn’t mean that you should seek it for your business.
Determining your budget requires much deliberation and mindful decision-making.
Study Past Attacks
Past breaches can give you an idea of the future frequency and extent of damage an attack can incur in your website or system. Reviewing your cybersecurity history shows you a clearer picture of the types of attack your system is sensitive to, as well as patterns in breaches that might help you predict their occurrence in the future. For instance, our advanced endpoint security software uses forensic analysis by combining real-time information gathering and historical intelligence to forecast potential threats.
Determine the Possible Cost of an Attack for Your Company
Like your budget, the cost of an attack differs not only from industry to industry but also from company to company. The damage that you would incur depends on the kind of data that is involved in your operation. The more sensitive the information, the more expensive it would be to deal with malicious activity.
Review Current Security Protocols
As a company with a website, there is a high chance that you already have security measures in place. Before changing your budget, allocating more or fewer funds to your cybersecurity, it is best to look into your current security process. Doing so would enable you to find points of improvement and investment.
As they say, prevention is better than cure. This statement rings valid, especially for protecting your digital assets. Like your website, it is a good investment in your company’s growth. Spending on cybersecurity only after an attack happens is much more expensive compared to the costs of preparing a defense strategy.