Cybersecurity’s ROI in 2023: A strategic investment

The cost of cybercrime is rising

The cost of cybercrime is on the rise, with global losses estimated to reach $10.5 trillion by 2025. This includes the direct costs of data breaches, such as ransom payments, regulatory fines, and customer churn, as well as the indirect costs of reputational damage, operational downtime, and lost productivity.

The ROI of cybersecurity

The ROI of cybersecurity can be difficult to quantify, as it depends on a number of factors, such as the size and industry of the organisation, the types of cyber threats it faces, and the level of cybersecurity investments it makes. However, a number of studies have shown that cybersecurity investments can deliver significant ROI.

For example, a 2023 report by Ponemon Institute found that the average cost of a data breach in the United States is $4.35 million. The report also found that organisations with more mature cybersecurity programs have significantly lower data breach costs.

Another study, by IBM, found that organisations that invest in security awareness training for their employees can reduce their data breach risk by up to 70%.

The importance of a strategic approach to cybersecurity

To maximise the ROI of cybersecurity investments, organisations need to take a strategic approach. This means developing a comprehensive cybersecurity strategy that is aligned with the organisation’s overall business goals and risk appetite.

The cybersecurity strategy should identify the organisation’s most critical assets and the cyber threats it faces. It should also outline the specific cybersecurity controls and technologies that will be implemented to protect these assets.

References from strat houses and research companies

• Gartner: Gartner predicts that global cybersecurity spending will reach $178 billion in 2023. This represents an increase of 13.2% from 2022.
• Deloitte: Deloitte’s 2023 Global Technology, Media & Telecommunications (TMT) Industry Outlook report found that cybersecurity is the top priority for TMT CEOs globally.
• PwC: PwC’s 2023 Global Digital Trust Insights survey found that 93% of CEOs believe that cybersecurity is a critical business risk.

Conclusion

Cybersecurity is a strategic investment that can deliver significant ROI to organisations of all sizes. By taking a strategic approach to cybersecurity, organisations can reduce their risk of cyberattacks and protect their most critical assets.

Additional tips for improving the ROI of cybersecurity investments

• Focus on prevention: It is more cost-effective to prevent cyberattacks than to respond to them after they have occurred.
• Invest in security awareness training: Employees are often the weakest link in the cybersecurity chain. Security awareness training can help employees to identify and avoid cyber threats.
• Use a managed security service provider (MSSP): MSSPs can provide organisations with access to the latest cybersecurity technologies and expertise without the need to invest in-house resources.  
• Measure the effectiveness of cybersecurity investments: Organisations should regularly measure the effectiveness of their cybersecurity investments to ensure that they are getting the best possible ROI.

NINTH EAST Partners is your Cybersecurity provider of choice. We have worked with 100s of clients in improving their cybersecurity posture from assessing, recommendation, ROI calculations and implementation. Let’s talk today and get started on your cybersecurity journey.