In the words of the famous investment guru himself, Warren Buffet, “Wide diversification is only required when investors do not understand what they are doing.” So, Payatu is are here to guide you into making wiser decisions when it comes to your security investments because an investment made with the best knowledge pays the best interest.
For a standard investment, the return on investment (ROI) is the primary factor upon which a company bases its decision upon. But, when it comes to cybersecurity, this rule undergoes a minor overhaul as the primary goal shifts from getting the most cost-effective method to obtaining the most secure one.
A simple formula exists known as the Return on Security Investment or ROSI. ROSI takes into account factors like Annual Loss Expectancy (ALE), Cost of the Solution, and Mitigation Ratio to compute the value of security investments. This quantitative risk assessment formula goes like:
ROSI= ( ALE x Mitigation Ratio – Cost of Solution ) / Cost of Solution
The formula above was deduced by the SANS Institute. In case of minor inaccuracies, at the very least, it is very useful to compare different solutions and will play an important role in the final decision making.
But, is it possible to find that middle ground? To get the optimal solution that does both things in one fell swoop?
The simple answer is: Yes.
Here are a few helpful tips so you can get the bang for your buck out of your investment in cybersecurity:
1. Know what you have and what you need:
The security needs and preferences differ from business to business. It depends upon the type of organization, the structure, the size, number of employees, locations, and other important factors
Here is a table to give you a brief idea of what is of importance for the main organizational types:
|Type of Organization||Important Security Needs|
|Technological Company||Protection of intellectual property|
|Financial Institution||Securing customer assets and protection from fraudulent attempts|
|Online Retailers||Securing payment gateways and processes|
|Manufacturer||Security from the disruption of manufacturing processes|
|Healthcare provider||Protection of confidential customer data|
As shown here, depending upon the type of your organization, your needs will vary. There is not a single be all and end all solution which would cover all the bases for any organization. One must do a careful inspection and need analysis of his own organization before putting money on the line for security solutions, which may not even safeguard what is important to the organization.
Seeking guidance from a cybersecurity consultant or expert would go a long way into making sure you would make the wiser decision on your investment.
2. Assessment of potential financial loss in case of a security breach:
Ensure that your expenditure on cybersecurity and its quality matches the valuation of your intellectual property. Purchasing cheaper security solutions does not guarantee complete immunity from data leaks and database breaches.
A standard that is generally followed across mainstream organizations is spending 10-15% of the total annual income into strengthening their security is the way to go. Although, it is quite possible that it may come short of what is required for your respective business as it is a variable.
Once more, a cybersecurity consultant comes into the picture. The guidance would very much be helpful for your organization to identify and plug the right holes.
3. Functionality and effectiveness of the security strategy to be implemented:
The measurement of the value of your security investment is critical. Would it collapse or would it sustain when it is called upon to perform its task, is the question you should ask yourself.
As many as 65% of organizations do not know whether the disaster recovery system would work as forecasted, and as many as 80% of businesses are unaware of the locations of their data.
Continuous monitoring of the effectiveness of the solution can be tedious and frankly a waste of copious amounts of time and labor. Manual updates are difficult to keep track of as well.
In such cases, having a Cybersecurity Analytical Tool can be very handy to assess and measure a given solution before implementation and monitoring and updating it after.
4. Analyzing your limit of risk-to-reward:
In order to meet any strategic objectives, an organization must also take into account how much risk they are willing to take. A smaller, low-budgeted company may take on more significant risks with a different investment ratio as compared to a bigger company with too much at stake as it has to protect its market value and shareholder interests.
Avoid blind-sidedly comparing your budget to a competitor. Focus on making wiser decisions that are respective to your own business rather than imitating and implementing solutions of a fellow business rival. This may leave you at a greater vulnerability. For example, An organization might have significantly more intellectual property and assets to protect. Thus, the organization would require more investment for better cybersecurity solutions
Assess your individual business and make appropriate investments. Seek guidance from a cybersecurity expert to make sure you leave no stone unturned.
Another factor, known as risk appetite, comes into play here, where factors such as risk capacity, attitude towards it, existing risks, and tolerance are all considered. One must analyze its risk appetite in the presence of the members of the board, shareholders, executives, and, if possible, and organizational security consultant.
How Payatu can help you:
You might’ve had seen many mentions of cybersecurity consultants and security solutions. This clearly highlights the role and importance of experienced consultants in the business industry.
This is where Payatu steps into your rescue. With our team of experienced cybersecurity specialists, analysts and researchers, we make sure you stay up-to-date with the most recent trends in security and help you analyze, deduce and provide solutions that are best suited to your business.
We help you choose the most optimal solution based on your personal business needs, regulatory requirements, exposure to threat, cybersecurity posture, and budget, to help you avoid solutions which don’t align with your industry and, on the flip side, implement relevant and effective cybersecurity solutions which are accurately calculated based on our several security metrics carefully deduced by our experts.
Join us to take the next step towards making wiser investments.