Chief Information Security Officers (CISOs) play a critical role in protecting an organization's digital assets and IT infrastructure against an increasingly complex cyber threat landscape. Not only are they responsible for developing an organization's cybersecurity programs, but they must also consistently present new ideas to the board, which more often than not lacks the technical acumen of a CISO or other high-level IT roles. CISOs cannot let the budget cycle slip and miss a crucial opportunity to acquire the necessary tools needed to strengthen the security of their organization.
Data from YL Ventures shows that more than half of CISO budgets are declining or unchanged, making it even more important for CISOs to justify their cyber budgets to the board. This requires them to effectively communicate the budgetary impact of potential breaches and demonstrate the significance of cybersecurity interventions, risks and the potential return on protective investments compared to the hefty losses associated with a breach.
The forecasting process for the coming fiscal year is mainly determined months in advance – ideally before the end of the third quarter. Developing a budget framework at an early stage provides a better insight into which investments are possible in the coming year and where allocation will be most worthwhile.
Chief Information Security and Risk Officer at ExtraHop.
Decoding cybersecurity for business leaders
Cybersecurity and IT solutions are highly technical, and CISOs must articulate the benefits of investing in these solutions and how cybersecurity objectives align with the organization's overall business objectives.
It is important that the CISO speaks the language of the company and is portrayed as a communicator, and not as a planner or a technologist. By highlighting how robust cybersecurity measures can support revenue growth, customer retention and brand reputation, they can help the board understand that cybersecurity is not just a technical issue, but a strategic imperative.
CISOs need an easily accessible and well-documented list of additional items requested in specific circumstances. This will allow them to provide additional information about spending options to company boards or CEOs, especially when it comes to events like Solar Winds or the CISA Shields Up Alerts. The items on the list must be thoroughly justified and explained to ensure transparency and accountability.
Presenting cybersecurity concepts and solutions in terms that align with board members' priorities and concerns bridges the gap between technical experts and decision makers. That's why the CISO must do more than just present. They must first listen and learn so that other stakeholders can trust the CISO to propose solutions that address the risks facing the business.
Quantify risk and expose the truth in security
CISOs can place measurable value on cybersecurity investments by assessing the potential impact of breaches. Rather than presenting a vague and catastrophic scenario, it is more effective to identify specific vulnerable areas and the potential risks they pose. Through a comprehensive risk assessment and mitigation strategy, supported by research, CISOs can identify and articulate the various cyber threats to which the organization is susceptible, along with estimating the potential financial and reputational losses that could result from a breach.
There are two main ways to reduce overall risk: controlling the probability of an event occurring, or controlling the consequences of an event. Measures such as detection and prevention can help reduce the chance of an event happening, while having insurance, cloud backups and incident response plans can help minimize the impact of an event.
Using industry data and trends to support the assessment will provide a clearer picture of the 'why' and need for cyber protection. New data from ExtraHop shows that listed companies that suffer a data breach can see their share price drop by an average of almost 9% in the year following the incident. These companies also report an average 73% decline in net profits, demonstrating the longevity and major consequences of a breach not only for the organization, but also for customers and shareholders.
By clarifying how cyber incidents can disrupt business operations, cause downtime and lead to financial losses, CISOs can emphasize that cybersecurity is about protecting data and maintaining the organization's brand reputation and ability to operate without friction. By implementing controls that ensure the system is resilient to disruptions, the CISO can minimize reputational risk and maximize system availability.
Demonstrate success and return on investment
Fines from regulators and legal actions resulting from data breaches can have significant financial consequences. By demonstrating how cybersecurity investments can help the organization avoid such fines, CISOs can highlight the importance of proactive measures.
The same ExtraHop report mentioned above shows that the average cost of a data breach for a US business is approximately $9.44 million. When this number is compared to the costs of controls, remediation and countermeasures, the value of the reduced risk becomes clear.
Additionally, developing and presenting different cyber breach scenarios can help contextualize the potential impact on the organization's operations, reputation, and finances. By identifying different attack vectors, the extent of data exposure and subsequent consequences, CISOs can highlight the importance of cybersecurity investments in mitigating these risks. Using statistics, data and visuals, CISOs can present complex information in a digestible format.
The primary goal of an organization in the field of cybersecurity is to establish, convey and maintain trust. All investments in cybersecurity must be aligned with this mission, and all business leaders must strive to achieve it. It's important to keep business leaders informed of key achievements and share detailed reports that highlight loss prevention, such as the number of attacks thwarted. This approach quantifies the effectiveness of security solutions and proves the value of the product.
By building a solid business case and quantifying potential breach costs, CISOs play a critical role in helping the board understand that cybersecurity is not just a cost, but a necessary strategic investment that will enhance the company's reputation, financial stability and success. organization can secure in the long term. .
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