Cyberattacks are on the rise, and businesses are taking notice. According to Kaspersky’s recent IT Security Economics report, companies are gearing up to increase their cybersecurity budgets by an average of 9% over the next two years. That’s a big jump, and it’s happening for good reason. As cyber threats grow more complex, organizations are realizing that they need to spend more to protect their data, networks, and reputation.
But simply spending more on cybersecurity doesn’t guarantee you’re any safer. It’s about making smart choices with your budget. In this blog, you’ll discover why companies are increasing their cybersecurity budgets and how to ensure every penny is spent wisely to strengthen your organization’s security.
Why the Budget Increase?
Kaspersky’s recent report sheds light on the key reasons companies are increasing their cybersecurity budgets. Let’s break it down:
More Complex Cyber Threats
Cyber threats aren’t as simple as they used to be. Today’s attacks are much more advanced and harder to spot. Ransomware, phishing, and data breaches are just a few examples of attacks that can cause huge damage. As threats get more complicated, companies need to upgrade their security measures to keep up. For large enterprises, the average cybersecurity budget is around $5.7 million, and they need these funds to stay equipped with the best tools to deal with growing cyber threats.
Tougher Regulations
Governments across the globe are making stricter rules around data protection and how businesses handle information. This means higher compliance costs for companies, which need to ensure they meet these new standards or risk facing fines. To avoid penalties, organizations are increasing their cybersecurity spending to stay in line with these changing regulations.
The Numbers Behind Cybersecurity Budget Increases
So, what do the numbers look like for businesses of different sizes?
Large Enterprises
For big companies, the average spend on cybersecurity is around $5.7 million, which sounds like a lot. But, when you compare it to their total IT budget of about $41.8 million, it’s just a piece of the pie. Even with this sizable budget, large enterprises are still dealing with around 12 cyber incidents each year, costing them about $6.2 million to recover. That’s 1.1 times their entire cybersecurity budget! Clearly, a large budget doesn’t mean a company is immune to attacks, it all comes down to how they manage that money.
Small and Medium Businesses (SMBs)
On the other hand, SMBs don’t have the luxury of large budgets. Their average cybersecurity spend is about $200,000, part of an overall IT budget of $1.6 million. But interestingly, they tend to face more incidents, about 16 cyberattacks per year. The cost of fixing these issues? Around $300,000, which is 1.5 times what they spend on cybersecurity. SMBs often run into specific challenges, like human error or misconfigurations in the cloud, making them more vulnerable to attacks.
How Should Companies Spend Their Increased Cybersecurity Budgets?
As companies plan to increase their cybersecurity budgets by up to 9% in the next couple of years, the big question is: How should they spend this extra money? Simply putting more funds into security isn’t enough. The trick is to focus on the right areas to get the most value for your investment. Let’s take a look at how companies can use these funds wisely, especially through approaches like Continuous Threat Exposure Management (CTEM) and Risk-Based Vulnerability Management (RBVM).
1. Prioritize Continuous Threat Exposure Management (CTEM)
One of the smartest ways to spend more on cybersecurity is by focusing on Continuous Threat Exposure Management (CTEM). CTEM is all about keeping a constant watch on your organization’s security. Instead of reacting to threats when they happen, CTEM helps you stay alert, monitor potential risks, and identify vulnerabilities before they turn into full-blown incidents.
Here’s why CTEM should be a priority:
- Proactive Monitoring: With CTEM, companies can monitor their systems in real-time, identifying threats and risks at every step. This constant monitoring helps you take action before an issue becomes a major problem.
- Faster Detection: The quicker you spot a threat, the quicker you can act. With CTEM, detection is continuous, so threats are found faster and dealt with before they cause much damage.
- Cost-Effective: Catching problems early means you’re likely to save money in the long run. Preventing breaches before they escalate cuts down on expensive recovery and compliance costs.
2. Focus on Risk-Based Vulnerability Management (RBVM)
Another area where your increased budget can make a real impact is Risk-Based Vulnerability Management (RBVM). This approach helps you prioritize security issues based on the risk they pose to your business. Instead of trying to fix every single vulnerability, RBVM helps you focus on the ones that matter most.
Here’s how RBVM can make a difference:
- Prioritize the High-Risk Issues: Not all vulnerabilities are created equal. Some could lead to major security breaches, while others may be less of a threat. RBVM helps you identify and focus on the vulnerabilities that are most likely to be exploited, based on their risk to your organization.
- Align with Business Goals: RBVM helps you prioritize security actions that align with your business objectives. For example, it’s more important to protect customer data or financial information than a low-risk system. By addressing vulnerabilities that could harm your business the most, you’re protecting what matters most.
- Efficient Use of Resources: You can’t fix everything at once, and trying to do so could waste time and resources. RBVM ensures your team works on the most pressing issues first, saving time and effort while improving overall security.
3. Invest in Artificial Intelligence
As cyber threats grow more sophisticated, organizations are turning to Artificial Intelligence (AI) to strengthen their security strategies. AI is no longer just a buzzword, it’s becoming an essential tool in the fight against cybercrime. As per report – the global AI cybersecurity market, valued at $22.4 billion in 2023, is set to grow at a robust CAGR of 21.9% from 2023 to 2028. Investing in AI-driven cybersecurity solutions can provide organizations with the speed, accuracy, and efficiency needed to combat modern threats.
Key benefits include:
- Threat Detection and Response: AI can identify patterns and anomalies in data, allowing organizations to detect threats like ransomware or phishing attempts before they cause harm.
- Real-Time Insights: AI-driven systems provide instant feedback on potential risks, helping teams prioritize and respond effectively.
- Scalability: Whether you’re a small business or a large enterprise, AI solutions can scale to fit your needs, providing tailored protection for diverse environments.
The Role of AI Agents
One of the most exciting advancements is the use of autonomous AI agents in cybersecurity. These agents work independently to monitor systems, identify vulnerabilities, and even take corrective actions in real-time. They mimic human decision-making processes but operate at a speed and scale that humans cannot match.
- Proactive Monitoring: AI agents continuously scan your infrastructure, flagging potential issues before they escalate.
- Automated Remediation: Some AI agents go beyond detection by taking immediate steps to resolve identified vulnerabilities, reducing downtime and manual intervention.
- Predictive Analytics: Using machine learning, AI agents predict future attack vectors, allowing organizations to strengthen their defenses proactively.
AI doesn’t replace human expertise, it amplifies it. By automating repetitive tasks and providing actionable insights, AI allows cybersecurity teams to focus on strategic initiatives. Whether it’s through AI agents, machine learning algorithms, or predictive models, investing in AI helps companies stay agile and prepared for the unexpected.
4. Use Managed Security Services
Not all businesses have the internal resources to keep up with the growing number of cyber threats. If that sounds like you, consider spending some of your increased budget on managed security services. These services can provide extra expertise, tools, and personnel to help secure your systems, allowing your in-house team to focus on other projects.
Managed services can help with:
- 24/7 Monitoring: Many managed security services offer round-the-clock monitoring, ensuring that threats are detected even outside of business hours.
- Incident Response: These services can step in quickly if an incident happens, helping to mitigate the impact and recover faster.
- Expertise and Knowledge: If your team is short on cybersecurity experience, managed services can bring in the expertise needed to strengthen your overall security posture.
Making Every Dollar Count
Simply increasing your cybersecurity budget won’t automatically make your company safer. The key is in how that budget is spent. By focusing on strategies like CTEM and RBVM, investing in AI, and considering managed services, you can make the most of every dollar spent.
Your cybersecurity budget should not only help you address current risks but also help you prepare for the future. The sooner you prioritize these areas, the more prepared you’ll be to handle whatever comes next.
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