# Making the case for cybersecurity investment
Author:  Pal Sinha, Barnali 
Author URL: https://financedigest.com/author/pal-sinha-barnali
Published: 2020-01-07
Category: TECHNOLOGY
Category URL: https://financedigest.com/category/technology
Meta Title: Why Business Leaders Need to Rethink Cybersecurity
Meta Description: Discover why cybersecurity is vital for business success, with insights on breaches, regulations and how to assess and improve your organisation's security
URL: https://financedigest.com/making-the-case-for-cybersecurity-investmenthtml

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_By_ **_Spencer Young_** _, Regional Vice President of EMEA at Imperva_

2018 turned out to be a significant year for cybersecurity with breaches and attacks making the news far too often. In fact, [a recent report](https://www.gov.uk/government/statistics/cyber-security-breaches-survey-2018) released by the Department for Digital, Culture, Media and Sport reveals that over four in ten businesses (43%) in the UK experienced a cyber security breach or attack last year. The same report goes on to highlight that despite the growing number of cybersecurity threats and attacks fewer than three in ten businesses (27%) have formal cyber security policies in place.

While this discrepancy is worrying, it shines the spotlight on why [business leaders are yet to fully embrace the value](https://www.financedigest.com/fluid-coolers-market-by-covid-19-impact-analysis-volume-and-value-revenue-business-opportunity-future-projections-and-key-trends.html "Fluid Coolers Market By Covid-19 Impact Analysis – Volume And Value, Revenue, Business Opportunity, Future Projections, And Key Trends") of cybersecurity.

Although we’re in the era of [digital transformation](https://www.financedigest.com/how-to-create-value-in-digital-transformations.html "How to create value in digital transformations"), many organisations are looking for guaranteed returns from their technology investments. Therein lies the problem – with increasingly tight [budgets, senior leaders view](https://www.financedigest.com/senior-leaders-more-at-risk-of-burnout-than-ceos-according-to-new-research.html "Senior leaders more at risk of burnout than CEOs, according to new research") of cybersecurity systems is currently framed as insurance. So, how do we shift this mindset so that senior leaders can better understand that the value of [protecting business](https://www.financedigest.com/fx-hedging-strategies-to-protect-your-business.html "FX hedging strategies to protect your business") critical data extends far beyond just covering your assets?

**Cybersecurity and the board**

In recent months, we’ve seen the introduction of new regulations such as the EU’s GDPR, as well as constantly shifting privacy laws in nearly every geography. While there is considerable levels of effort required to prepare for these new compliance landscapes, they are putting [security strategy](https://www.financedigest.com/security-trumps-obesity-in-britains-first-food-strategy.html "Security trumps obesity in Britain’s first food strategy") decisions at the top of the priority pile of boards and exec teams.

Board members, in particular, are responsible for establishing good governance practices and policies for [driving better financial performance and growth](https://www.financedigest.com/how-embedded-insurance-can-drive-growth-and-value-for-the-insurance-and-finance-sectors.html "How Embedded Insurance Can Drive Growth and Value for the Insurance and Finance Sectors"). For this reason, it is [vital that they have a comprehensive view of their organisation’s cybersecurity strategy](https://www.financedigest.com/why-an-orchestrated-digital-identity-strategy-is-vital-for-financial-organisations-in-fighting-fraud.html "Why an orchestrated digital identity strategy is vital for financial organisations in fighting fraud"), and the required level of investment for buying down their risk.

Where cybersecurity may have previously been [considered one subset of operational](https://www.financedigest.com/europes-wizz-air-considering-a-saudi-operating-license.html "Europe’s Wizz Air considering a Saudi operating license") IT, a cursory glance over the press clippings in recent years will have alerted them to the real challenge. A growing number of business leaders are awakening to the fact that a [data breach](https://www.financedigest.com/outthink-raises-10-million-to-tackle-human-errors-behind-data-breaches.html "OutThink raises million to tackle human errors behind data breaches") is all but inevitable. What they need to know is, how they can limit the scope of damage from a [data breach](https://www.financedigest.com/how-financial-organisations-can-stay-protected-from-financial-data-breaches.html "How Financial Organisations can Stay Protected from Financial Data Breaches ") with the right level of investment.

**Step 1: Making the case to senior leadership**

As the [levels of liability for failing](https://www.financedigest.com/uk-new-car-sales-rise-in-november-fail-to-zoom-past-2019-levels-smmt.html "UK new car sales rise in November, fail to zoom past 2019 levels- SMMT") to govern risk and protect critical data are transferred from the IT department to senior leadership, these leaders need a quantified measurement of risks including:

- Compromised customer data
- Diminished brand and reputation
- Loss of investor and [consumer confidence](https://www.financedigest.com/asian-shares-rise-after-consumer-confidence-boosts-nasdaq-to-record-high.html "Asian shares rise after consumer confidence boosts Nasdaq to record high") and loyalty
- Stolen sensitive intellectual property
- Compliance and regulatory sanctions
- Business disruptions

**Step 2: Assessing the current situation**

Once these risks are quantified, due diligence will require [leaders to assess the steps their partners](https://www.financedigest.com/impact-com-named-a-market-leader-in-research-in-actions-partner-management-automation-report-and-in-g2-winter-reports.html "impact.com Named a Market Leader in Research in Action’s Partner Management Automation Report and in G2 Winter Reports") and competitors are taking to avoid exposure. Relationships with technology suppliers and lenders then become less transactional, and more of a long-term advisory partnership, as they’re best placed to provide advice on the [current trends](https://www.financedigest.com/egg-incubator-market-extensive-analysis-of-key-segments-of-the-industry-and-emerging-growth-factors-with-current-trends-and-future-estimations.html "Egg Incubator Market: Extensive Analysis Of Key Segments Of The Industry And Emerging Growth Factors With Current Trends And Future Estimations") within your marketplace.

**Step 3: Do a complete audit**

The [next step](https://www.financedigest.com/eu-leaders-to-discuss-next-steps-on-energy-ukraine.html "EU leaders to discuss next steps on energy, Ukraine") requires you to conduct a thorough inspection of your current security posture.

This involves understanding where your critical [data currently](https://www.financedigest.com/cbd-gummies-market-current-scenario-and-industry-growth-forecast-with-major-key-players-data-2030.html "CBD Gummies Market| Current Scenario and Industry Growth Forecast with Major Key Players data 2030") resides, who requires access to it and more critically, who actually has access to it.  While it’s a [drum we beat](https://www.financedigest.com/the-global-recession-drum-beat-is-getting-louder.html "The global recession drum beat is getting louder") perpetually at Imperva, many leaders don’t understand the risks of a potential data breach by careless, compromised, and malicious insiders. Not all data assets carry the same level of risk, and not every employee should be given carte blanche [access](https://www.financedigest.com/matchly-the-us-fintech-platform-that-enables-employees-to-access-their-401k-employer-match-raises-1-7m-in-pre-seed-round.html "Matchly, the US fintech platform that enables employees to access their 401(k) employer match, raises .7m in Pre-Seed Round") to all organisational data.

While this may be [time consuming](https://www.financedigest.com/adapting-payments-to-reassure-consumers-and-safeguard-profitability-during-times-of-uncertainty.html "Adapting payments to reassure consumers and safeguard profitability during times of uncertainty"), leaving no stone unturned at this stage of the audit will give you a clear understanding of where your security measures stand currently and benefit you greatly in the long run.

**Final step: Determine the right** [investment for your business](https://www.financedigest.com/unlocking-fresh-business-investment-opportunities-beyond-covid.html "Unlocking fresh business investment opportunities beyond COVID")

By appraising your data assets in [terms of their value](https://www.financedigest.com/benign-positional-vertigo-treatment-market-is-pegged-to-witness-sound-growth-in-terms-of-value.html "Benign Positional Vertigo Treatment Market Is Pegged To Witness Sound Growth In Terms Of Value") and risk, you can then begin targeting your investments towards timely threat detection and incident response.

No matter the time and effort invested, it is [important to remember that data breaches](https://www.financedigest.com/when-not-if-why-a-data-breach-response-plan-is-more-important-now-than-ever.html "When not if: why a data breach response plan is more important now than ever") are inevitable.

Framing this approach as a risk/reward equation and using a tiered security approach ensures that your organisation can protect high-value targets that would cause significant harm if they were compromised.

At the very least, senior leaders need to be made aware of the growing [threat they face](https://www.financedigest.com/cup-holder-market-emerging-industries-challenges-and-threats-faced-by-key-vendors-and-global-business-outlook-till-2031.html "Cup Holder Market Emerging industries, Challenges and Threats Faced by Key Vendors and Global Business Outlook till 2031") every day from external cyberattacks and internal data breaches. A single breach has the potential to irreparably damage the financial condition of even the most [successful business](https://www.financedigest.com/why-seo-is-crucial-for-business-success-post-pandemic.html "Why SEO is crucial for business success post-pandemic"), and ruin the careers of those leaders involved. Rather than packaging your cybersecurity spending rationale within IT investments, these really need to be highlighted as a high level risk mitigation strategy.

**_About the author:_**

As the Regional Vice President of EMEA at Imperva, I’m dedicated to helping IT security professionals realise tangible business value from their security technology, by delivering meaningful and actionable insights to [Data and Application activity](https://www.financedigest.com/oil-slips-on-china-covid-curbs-weak-factory-activity-data.html "Oil slips on China COVID curbs, weak factory activity data").  If you’d like to have a discussion about how you can begin building a business case for IT security [investments that provide real and measurable benefits](https://www.financedigest.com/a-two-way-street-chinese-investment-in-the-uk-will-benefit-both-economies.html "A TWO WAY STREET: CHINESE INVESTMENT IN THE UK WILL BENEFIT BOTH ECONOMIES") to your business.


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