Protecting Your Business: How Much Should You Budget for Cybersecurity?

In today’s digital age, cybersecurity has become a top priority for businesses of all sizes. With cyber threats on the rise, it’s important to allocate a budget for cybersecurity to protect your business from potential attacks. But how much should you budget for cybersecurity?

The answer to this question depends on several factors, including the size of your business, the type of data you handle, and the level of risk associated with your industry. However, as a general rule of thumb, experts recommend that businesses allocate at least 10% of their IT budget toward cybersecurity.

This may seem significant, but the cost of a cyber attack can be much higher. A breach can result in lost revenue, damaged reputation, and legal fees. In fact, according to a report by IBM, the average cost of a data breach in 2020 was $3.86 million.

So, what should you include in your cybersecurity budget? Here are some essential components:

1. Security software: This includes antivirus software, firewalls, and intrusion detection systems.

2. Employee training: Educating your employees on cybersecurity best practices can help prevent a human error that can lead to breaches.  Ask us about our Lunch N’ Learn series on cybersecurity, which is considered a requirement for most cyber-insurance policies. (Oh, and we make sure your team laughs and learns through it all!)

3. Data backup and recovery: In case of a breach, having a data backup can help you quickly recover and minimize damage.  This amount will vary depending on your company and the amount of downtime you can handle.

4. Vulnerability assessments: Regular assessments can help identify weaknesses in your system and address them before they can be exploited.

5. Incident response planning: Having a plan in place for how to respond to a breach can help minimize damage and speed up recovery.

It’s also important to regularly review and update your cybersecurity budget as new threats emerge and your business evolves. Investing in cybersecurity is not a one-time expense but an ongoing process.

In conclusion, allocating a budget for cybersecurity is crucial for protecting your business from potential cyber threats. While the amount you should budget may vary depending on your business’s specific needs, allocating at least 10% of your IT budget toward cybersecurity is a good starting point.

Contact us at 336-303-1730 to discuss how we can help your business be better protected. Our team of cybersecurity experts can help assess your needs and develop a customized plan to keep your business safe.