How to Plan your Cyber Security Budget for 2023
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The world is changing rapidly, so your cybersecurity budget needs to change with it. As remote work has increased and it has introduced new weaknesses, criminals have ramped up attacks on the supply chain and the cloud. The biggest question that arises here is how to maximize your ROI on cybersecurity investments in today’s new landscape.
As 2023 is near, everyone is thinking about preparing their 2023 security budgets. Some might be asking themselves, “Where do I begin?” It is of utmost importance to sort out which risks need the most of your attention and which ones the least, as there are so many varied and rapidly changing facets of defending organizations against cyber threats.
Technology is evolving, and your cybersecurity budget should be too. Is your organization ready to prepare the IT and cybersecurity budget for 2023? But don’t know how to start? If you still have not evaluated your till-date IT spend, now’s the time to think about it seriously. And this blog is all about how to plan your cybersecurity budget for 2023. In this blog, we will share the tips and tricks to help you make sure your IT and cybersecurity budget planning for 2023 is aligned with your business goals.
Let’s get started!
What should You include in your IT and Cybersecurity budgets?
At the time of preparing your IT and cybersecurity budget for 2023, you have to include the below-mentioned things:
- Needed hardware upgrades, i.e., new laptops, phones, devices, workstations
- Software subscriptions and licensing, and application fees
- Managed IT services.
- Cloud services
- IT projects (upgrades, implementations, etc.)
- Energy costs (cloud vs. on-premise)
- Security and IT training for employees
- Annual Risk Assessments
- Managed security services for
This list might not be the same for all, as it depends on your organization’s existing IT infrastructure and whether you plan to make any drastic changes in the coming year. To find out the exact list for your organization, contact us right now and get the expert’s suggestion.
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Is Cybersecurity part of an IT budget?
It can be, but we suggest you separate the two. Cybersecurity and IT are both critical areas that deserve their own focus still some items may complement each other. Many smaller organizations aren’t breaking this out yet, but most larger ones are. It is ideal to develop your cybersecurity budget and IT budget side by side to ensure that they align and you are not duplicating work or costs, or choosing cybersecurity based on incorrect assumptions about what the future holds for your IT spend.
Make sure to budget for initiatives to diminish premiums if you plan to pursue Cyber Insurance (spoiler alert: you should). Most of the Cyber Insurance requirements now are making people jump through hoops to increase their overall security posture (which can require substantial investments) to meet the criteria for coverage. If you’re not planning for this, it could take away from other budget areas.
We recommend you not to cut down your cybersecurity budget in 2023 as the cyberattacks are increasing and requirements for compliance as well as cyber insurance are evolving. A security event is not only costly, it’s damaging to your organization’s reputation, client’s trust, and your business operations. An increase in preventative services and proactive tools is the best investment you can make in protecting your business.
Apart from this, you have to think about annual services, such as Risk Assessments and Security Awareness Training for your team. To get the effective results, these should be done at least once a year i.e. it should be included in your cybersecurity budget. There should also be an allocation to address findings from Risk Assessments, Penetration Testing and any other security reviews that will have recommendations or suggested remediation.
5 Key Considerations While Planning IT and Cybersecurity Budget 2023
The Economic Climate
Global growth will slump to 2.9% in 2022 and will remain at this level until 2023-2024 as per the World Bank. This global recession develops an opportunity for cybercriminals as well as will be devastating for many individuals. According to the Verizon DBIR, 86% of cybercrime is financially motivated. As recession takes place, there are chances that fraud will increase. If there is financial desperation, risky behavior is more likely to occur. For instance, mortgage fraud increased by 71% during the economic downturn of 2008-2009. In 2021, Juniper Research has identified an 18% increase in eCommerce fraud, a severe problem in light of research from The Federal Reserve that found traditional fraud models are failing to catch 85-95% of synthetic identity fraud attempts.
But fraud is not only related to consumer models. To extort or steal money from organizations, cybercriminals also target employees and use identity-related fraud tactics. According to the FBI identification, there is a 65% raise in Business Email Compromise (BEC) scams between 2016-2021 with associated losses of $43 billion.
The Regulation Carousel
Data protection and privacy regulations change on a regular basis as well as enter the regulation lexicon because of the always evolving nature of cybersecurity. Data privacy laws for instance California Consumer Privacy Act (CCPA) have already been deployed at the state level in the United States. Although, federal privacy law is appearing on the regulatory horizon. Apart from this, industry-specific laws, for instance the Health Insurance Portability and Accountability Act (HIPPA) mandate certain sectors to protect data. In the EU, the NIS2 directive creates a common cybersecurity framework across the union. Across the world, the laws of this nature are applicable.
Usually, these regional and industry-focused regulations overlap in their requirements. It is necessary for organizations to focus on having security best practices and implementing robust security measures. This will help in implementing high security and map to regulations, covering a multitude of cross-over requirements.
Word Up, Skill Up
By 2025 there will be a 3.5 million person shortfall in cybersecurity skills as per the recent report of Microsoft. The researchers also stated that 1 in 20 jobs in the United States is of a cybersecurity role. It is necessary to build resilience for CISOs to cover this skills gap by thinking outside of the recruitment box. A build and buy approach is needed. Upskill and reskill alongside the use of external cloud-based services that provide the solutions needed to harden a digitized organization.
The Geopolitics of Cybersecurity
There is not any doubt that geopolitical events give rise to cybersecurity attacks. 74% of the stolen money from ransomware attacks in 2021 went to Russian hackers.
Geopolitical events and recession build an alignment of events that cybercriminals exploit. The 2022 DBIR warns:
“This year Ransomware has continued its upward trend with an almost 13% increase–a rise as big as the last five years combined.” “This year Ransomware has continued its upward trend with an almost 13% increase–a rise as big as the last five years combined.”
Ransomware has increased in recent years to deliver a one-two punch involving data theft, data encryption, and extortion. The methods used to infect a company with ransomware typically involve human operators through spear-phishing, social engineering, and credentials theft.
Zero Trust Approach
To replace the traditional perimeter security framework Zero Trust is a much-needed development to be built on a ‘castle and moat’ protection approach. But Zero Trust must also continue to adapt as the risk landscape changes and, significantly, to reflect changes in the digital transformation pathway of a business.
For instance, as mentioned above, ransomware and BEC, amongst other cyber-attack types, rely on access to a device, app, or network to support an attack. To take such access, hackers or cybercriminals conduct targeted attacks on employees, business associates, and the broader vendor ecosystem. Because of this, privileged users are an ideal attack focus. A privileged user has access to all the keys to the castle, and a set of stolen keys opens up the fortress.
The Zero Trust approach to security is helpful in prevention, not cure. Zero Trust models of security help to make sure that access is continually authorized and verified, not just for users but for devices too. If a credential is stolen, it is difficult for some ZTNA (zero trust network access) solutions to detect a malicious element moving around a network or installing malware or exfiltrating data, as they are using a legitimate credential. This is why it is crucial to choose a ZTNA vendor that enforces dynamic access control checks and includes real-time monitoring to detect unusual or anomalous behavior.
The Conclusion on Your Cybersecurity Budget
No matter how large or small your budget, it is necessary to plan your cybersecurity budget with the help of experts and choosing the right cybersecurity solutions for your organization. CISOs and other key stakeholders can make informed decisions by understanding the patterns of behavior of cybercriminals and how they exploit situations that optimize cybersecurity budget spending.
In the stage of planning your IT and Cybersecurity Budget? But don’t know how to start? Sennovate experts are just a call away to help you with this.
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About Sennovate
Sennovate delivers custom identity and access management (IAM) and managed security operations center (SOC) solutions to businesses around the world. With global partners and a library of 2000+ integrations, 10M+ identities managed, we implement world-class cybersecurity solutions that save your company time and money. We offer a seamless experience with integration across all cloud applications, and a single price for product, implementation, and support. Have questions? The consultation is always free. Email [email protected] or call us at: +1 (925) 918-6565.