Initial costs
Assess the costs for licenses and setup required to deploy cybersecurity solutions.
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4 min read
Rich Pasewark - CEO, Board Director : Aug 5, 2024 8:00:00 AM
Data breaches are increasingly common and costly, prompting organizations to prioritize robust cybersecurity strategies. The recent 2024 IBM Cost of Data Breach Report highlights a concerning trend: the global average cost of a data breach surged by 10% year-over-year, reaching a staggering $4.88 million.
This increase, the largest since the pandemic, is driven by factors such as business disruption and the costs of post-breach customer support and remediation. Many businesses are passing these expenses onto customers, creating challenges in competitive markets already facing pricing pressures from inflation.
However, there are new technologies and strategies for combating the growing risk of a data breach and the costs associated with them. In this blog post we explore the findings from this new report, take a closer look at the costs associated with a data breach and the return-on-investment (ROI) of working with an Exposure Management partner to combat them.
The 2024 IBM Cost of Data Breach Report emphasizes the significant financial and operational impacts of data breaches, highlighting key areas such as business disruption, the hidden costs of shadow data, and the challenges posed by security staffing shortages.
Key report takeaways
Understanding these factors is essential for organizations aiming to mitigate risks, identify an appropriate solution to address them and manage costs effectively.
A growing number of organizations are turning to an Exposure Management partner to help mitigate the risk of a data breach. Exposure Management involves identifying, assessing and mitigating risks associated with an organization's digital assets in real-time.
This approach encompasses a broad range of activities, from vulnerability assessments and threat intelligence to incident response planning via a 24/7 Security Operations Center (SOC). The primary goal is to minimize the attack surface and reduce the likelihood of a breach.
For example, the UncommonX Exposure Management platform deploys a single agentless virtual appliance to discover everything on and connected to a network, building a real-time inventory of all existing data from all available sources, and correlates the collective information with network telemetry to determine all connections within the environment at any given time. This data and actionable intelligence can be used by internal IT and Security teams, or responded to and remediated by UncommonX’s 24/7 Managed SOC.
Investing in an Exposure Management partner not only enhances cybersecurity, it also offers a compelling financial return-on-investment (ROI). UncommonX has developed an ROI calculator to help IT leaders articulate the financial logic behind incident costs and security investments.
The UncommonX ROI calculator compares the cost of a data breach against the investment in cybersecurity solutions to combat them, considering factors such as initial setup fees, ongoing operational costs, and the potential financial impact of cyber incidents.
Cost elements of an ROI analysis
The ROI calculator uses the following elements to draw a comparison between necessary set-up/operational costs and potential costs associated with a breach:
Assess the costs for licenses and setup required to deploy cybersecurity solutions.
Evaluate ongoing expenses related to maintaining and updating cybersecurity measures.
Estimate the financial impact of cyber incidents without robust cybersecurity.
Compare potential breach costs against total cybersecurity investment to highlight ROI.
In this case, activities contributing to the estimated $4.88M cost of a data breach include detection and escalation, notification, post-breach response and lost business. This is calculated over an average three-year period.
An ROI assessment of Exposure Management
Meanwhile, adopting an Exposure Management partner can cost approximately $382.5k during that same three-year period. Needless to say, when compared to the potential breach expenses associated with an incident, the benefit far outweighs the cost.
However, potential breach expenses are not the only cost to consider. Staffing to support a 24/7 Security Operations Center (SOC) can cost an organization $2.425M over three years in operational tools, space, and staffing.
The operational savings achieved from an Exposure Management partner alone deliver an ROI of 5-10 times spend, or more, depending on the cost to cover the organization's environment and the scope of a potential breach.
For a free 30 minute security assessment and ROI analysis, contact us today.
Request AssessmentA fundamental component of building an effective business case for IT investment in an Exposure Management partner is the implementation of relative risk assessments. These are crucial for setting realistic, achievable targets for improvement.
At UncommonX, we leverage the structured approach of the NIST Cybersecurity Framework to conduct these assessments, providing a clear framework for managing and mitigating cyber risks. In fact, the founder of UncommonX was a contributing author to the original framework.
Elements of an effective business case
UncommonX has shared its ROI calculator with IT teams and conducted relative risk assessments to help them build a business case for improving cyber resiliency. We can help your team too.
Breaches, and the costs associated with them, are unfortunately showing no signs of softening. As IT team resources and capabilities also continue to wane, identifying new and cost-effective ways to mitigate cyber risks is critical. Especially when 1-in-3 breaches involve shadow data.
Remaining fiscally responsible in the face of growing cyber threats is no longer table stakes. By using quantitative data and relative risk assessments, IT teams can build the business case they need to combat this growing threat to their organization’s digital and physical infrastructure.
To get your free 30 minute security assessment and ROI analysis and to learn more about our Exposure Management platform, please submit a request form here or reach out to hello@uncommonx.com.
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