Why should I set a cyber security budget?
Technology is undoubtedly vital to both our professional and personal lives – technology drives the engine of businesses. With cyber threats happening constantly, from data breaches to ransomware attacks and phishing emails, safeguarding your business against these risks is crucial and cyber security has become paramount. We’re recommending businesses allocate dedicated resources to cyber security, setting aside a separate budget specifically tailored to combat the evolving landscape of cyber threats.
Why should I set a cyber security budget?
Cyber security incidents are on the rise, and the consequences of a breach can be devastating, ranging from reputational damage to financial loss.
To mitigate these risks, we are encouraging businesses to adopt a proactive approach towards cyber security. This starts with allocating adequate resources to tackle the ever-growing array of threats.
Allocating a dedicated budget to cyber security is a strategic investment into the longevity and safety of your business. In today’s interconnected world, where technology is vital, the repercussions of a cyber breach extend far beyond monetary losses, a breach can diminish customer trust, damage brand reputation, and result in legal challenges.
By investing in cyber security proactively, businesses can demonstrate their commitment to regulatory compliance, with data protection and privacy becoming more stringent, while protecting sensitive business and customer data from unauthorised access in turn safeguarding their business.
As well as mitigating risks, a dedicated cyber security budget can enable opportunities for evolving protection. As cyber threats advance so too must businesses defence solutions. Your cyber posture should be constantly reviewed. Investing in emerging technologies such as artificial intelligence and behavioural analysis can empower businesses to detect and respond to new, un-seen threats in real-time, further enhancing your overall security posture.
With customers increasingly prioritising data privacy and security, a strong emphasis on cyber security can also give your business a competitive advantage by demonstrating a commitment to safeguarding customer information and reassuring customers and suppliers that their data is handled in a secure manner.
How much budget should I allocate?
We recommend setting aside a separate cyber security budget that equates to around 1/3 of what your IT budget is. This ensures that there are dedicated funds available, separate from your IT budget, to implement robust security measures, conduct audits of your cyber posture and invest in cutting-edge technologies to fortify defences against cyber attacks.
Traditionally many companies have included cyber security expenses in their general IT budgets, but this approach often neglects the specific needs and challenges posed by cyber threats. In 2024, the importance of setting a cyber security budget cannot be emphasised more.
Do SMEs need to invest in cyber security?
It can be assumed that SMEs aren’t targeted by cyber attacks, but this is untrue. Our MD Nick, a SME owner himself, underscore the importance of cyber security for SMEs and setting a separate budget:
“It’s not just large companies being targeted by cyber attacks, SMEs are too – businesses of all sizes are susceptible to cyber threats and the results can be devastating, I can’t stress further the need to stay ahead of the curve. We’re all trying to do good business, and there’s lots of scary stuff to read and hear about when it comes to cyber security, with cyber threats happening all the time to businesses of all sizes, it can be a bit overwhelming. But by dedicating resources specifically for cyber security, companies can bolster their protection and readiness to tackle emerging cyber threats effectively, your business will not only be in a much better place in terms of its cyber posture, but you’ll also feel a lot better.”
In a time that’s defined by digital innovation and interconnectedness, your digital assets have never been more important. By allocating dedicated resources to cyber security, you can fortify your defences, mitigate risks, and position yourself for long-term success. As Nick puts it, “we’re all just trying to do good business” and investing in cyber security is an essential step towards achieving your business goals.
Speak to your accountant
We recommend booking in a consultation with your accountant to discuss with them the possibility of setting up a Cyber Security budget for you. They can often advise the best way to integrate this idea into your financial business plan.
Looking to fortify your business or discuss your businesses current cyber posture? Get in touch, our friendly team are here to help:
