The Cost of Cyber Security
The CFO’s Handbook
Tom Davies, CFO at CyberLab, explains why investing in cyber security should be a key priority for CFOs and Finance Directors. He covers:
• Investing in cyber security to protect your business
• Optimising cyber security budgets
• Cyber security support
Failing to Invest in Cyber Security: A Key Risk to Your Business Survival
Cyber criminals are constantly scanning the internet for vulnerable targets and businesses are often lucrative targets for cyber criminals.
The UK Gov Cyber Breaches Survey for 2024 found that half of businesses (50%) have experienced some form of cyber security breach or attack in the last 12 months. This is much higher for medium sized businesses (70%) and large businesses (74%).
Failing to invest adequately in cyber security can lead to a breach that jeopardises the survival of your business.
The Cost of Downtime
The average downtime caused by ransomware attacks has risen dramatically, indicates the number of UK victims appearing on ransomware data leak sites doubling since 2022.
Organisations face on average 26 days of downtime following a ransomware attack. Could your organisation afford such a significant disruption?
The Financial Cost
As of 2024, the average cost for each data breach in the United Kingdom was £4.4 million, with the annual predicted cost of overall cyber crime in the UK for 2025 soaring to £524 billion.
Data breaches can result in hefty fines from regulatory bodies such as the Information Commissioner’s Office (ICO) and these fines can reach up to £17.5 million or 4% of your annual turnover, whichever is higher.
Beyond fines, organisations face escalating costs for investigation, remediation, and rebuilding their IT infrastructure. Add to this the growing expense of cyber insurance premiums, and it becomes clear how financially draining an incident can be.
The Reputational Cost
The costs of a cyber incident extend beyond immediate financial losses. Long-term brand damage is another critical consideration. According to the Cisco 2022 Consumer Privacy Survey, 76% of consumers stated they would not purchase from a company they do not trust with their data.
The erosion of trust not only results in lost customers but can also damage relationships with business partners and stakeholders. Rebuilding this trust and regaining market confidence can take years, costing your organisation not just money but growth opportunities.
Cyber Insurance Explained
Cyber risk is an evolving threat that requires proactive management, and this episode explores the complexities of cyber insurance, how it protects organisations, and the costs associated with cyber incidents.
Optimising Cyber Security Budgets: Balancing Flexibility and Long-Term Savings
Multiyear Licensing vs. Monthly Subscriptions
When planning your cyber security investment, choosing the right funding model is essential, especially when considering your organisation’s cash flow dynamics.
For enterprise-level organisations, multiyear licensing agreements often present a cost-saving opportunity. These agreements typically come with significant discounts, offering a more budget-friendly option over the long term. However, they require an upfront payment, which may strain cash flows depending on your financial situation.
Alternatively, organisations aiming to maintain greater flexibility and preserve cash flow can explore monthly subscription models. While these plans provide a more manageable month-to-month payment structure, they generally come at a higher total cost over the full duration of the agreement.
In-House vs. Outsourced Cyber Security
For enterprise-level organisations, building and maintaining an in-house cyber security team can be a cost-viable option. However, many organisations are struggling to attract and retain the specialised talent required to support such teams effectively. The ongoing global skills shortage in cyber security makes it increasingly difficult to recruit qualified professionals, often leading to overstretched teams and heightened vulnerabilities.
Retaining high-quality talent is critical. Without a well-staffed and adequately trained team, the risk of missing red flags grows significantly.
Outsourced Cyber Security: A Scalable Solution
Ultimately, the choice between in-house and outsourced cyber security comes down to organisational needs, size, and resources. Enterprise-level businesses with larger budgets and established IT infrastructures may benefit from in-house teams, provided they can recruit and retain the necessary talent.
For other organisations, outsourcing provides a cost-effective, scalable, and reliable way to ensure comprehensive cyber protection.
Outsourcing allows organisations to:
• Access top-tier cyber security expertise without the challenges of recruitment and retention.
• Ensure round-the-clock coverage that would otherwise require significant investment in staff and resources.
• Scale protection to meet evolving threats, leveraging advanced tools and technologies provided by managed service providers.
CyberLab Control Services
Simple, secure, reliable managed security services designed to protect your organisation. Get help when you need it most and improve your cyber security posture.
We provide that extra layer to supplement your existing operation and complement vendor support, an easy way to outsource and address the complex, specialised issues. Select the level of service to suit your needs and budget. Our experts, contactable by both phone and email, can detect the problem, protect your organisation, and support your team.
Detect. Protect. Support.
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