Setting aside resources is essential to create an environment of confidence for your employees, clients, and management. For example, the exposure of sensitive data can have huge negative impacts on a company, from loss of customer trust, or even leading to the closure of a business entirely.
According to Neustar International Security Council (NISC), 81% of organizations surveyed committed to heightening their security budgets in 2022.
It makes sense that security is becoming more of a priority for global companies, especially those that have most of their operations and data storage online. Cybersecurity is expected to continue to rapidly increase, with a potential worldwide cost of cybercrimes reaching $10.5 trillion by 2025.
Taking initiative by creating an effective security plan and budget is an investment in the overall success of any business. We’ll explain why it’s so important to create a security budget plan and outline some simple steps to take.
Importance of Planning Your Security Budget
Planning your security budget ensures that you understand and are prepared for specific threats to your company’s security, as well as having the means to take action.
Being caught by surprise by security breaches and not having a plan in place, or any funds to rectify the situation would be detrimental to the business in many ways.
When it comes to the security of a business, we can consider it in two ways: physical security and cybersecurity. While software firms may prioritize cybersecurity, many still require security guard service to protect their premises.”
More about each type of business security:
Physical Security
This can include break-ins, onsite accidents/emergencies, and the safety of employees. The budget may also be allocated to acquiring access control systems, surveillance tools, insurance, and other physical assets.
Cybersecurity
This covers Wi-Fi network protection, hardware, and software security, company and consumer data, and other privacy protection (like the use of VPNs, for instance).
We’ve all heard disastrous incidents with data breaches of huge companies, like the famous Yahoo! incidents (2013-2016) and Microsoft’s 2021 data breach. This is where private information of a huge number of clients is exposed or stolen – like private info and other potentially serious data being leaked for malicious use (e.g. credit card fraud).
Benefits of Security Budget Planning
Beyond the common sense of the intelligence of having a plan for security in place, there are additional benefits of security budget planning:
You’ll Save Money
With clear goals and plans for protection and remedies, less time (wasted labor resources) and money (unallocated funds) is spent.
Allocating money in a structured way is why budgeting is a tool for anyone to save money – whether for personal or professional means. Additionally, investing in prevention will save money you’d spend dealing with security breaches.
Assets are Secured
Managing assets is crucial for a successful business. Security budgets allocate resources to protect critical business assets.
They include tax and consumer information, company data, employees, warehouses, service tools and machinery, inventory, equipment, and more.
Resources for Upgrades
Setting aside funds for upgrades and replacements is crucial when technology is continuously being innovated. If a security protocol fails, having the funds available to instantly fix the issue will keep the business running without any interruptions.
Emergency Assistance
Companies must be prepared for emergencies, and a security budget is a part of business emergency plans. Of course, emergencies can’t be predicted, but you can have resources and procedures in place for those that are more likely to occur (break-ins, and weather emergencies, for example).
Steps to Plan Your Security Budget
Some of the following steps will be more or less applicable to your company and the way it functions. Here is a helpful framework to consider for how to plan your security budget.
Identify the Valuable Assets/Functions
Before allocating funds to your business security, you need to understand what property and areas of the business need certain security measures, and the level they should be secured.
What data, systems, intellectual property, and assets are valuable to the business? Which ones are critical to the business or to certain projects? Then, you would consider how they might already be secured and what gaps are there.
Outline the Risks
Although no company can ever have full certainty about what will happen, it is possible to determine the potential security risks using intelligent assessments, common sense, and past experience.
Ensure that you’re having a realistic look at the risks involved, and the impacts of each threat. That allows you to plan your security measures and effectively budget for safeguarding against these threats. Risks would include stolen data, leaked intellectual property, physical damage, etc.
Two kinds of security measures are considered when setting milestones for security budgeting – preventative and reactive. That way, you can outline the risks and the actions to both prevent it from occurring and respond to the event if it does occur.
Preventative Security
Security measures designed to be precautionary against future threats.
- Workplace emergency plans and drills
- Critical incident plans/exercises/drills
- Insurance for assets and other property
- Data security (digital privacy tools).
Reactive Security
These are measures that would be in response to events.
- Responses to violence/emergencies
- Investigation plans/resources
- Ransom/kidnapping procedures.
Assess All Business Areas
Beyond traditional security measures like insurance or data protection software, it’s important to consider other areas where security expenditure would be beneficial. These could include backup and data recovery, contract employees, PR personnel, compliance audits, security tools, etc.
Research the Best Tools
What tools does the company already have (are there now better options available)? Are there different tools or versions that would be more valuable to invest in? Shop around not only for the most effective tool but also for the best price without compromising on quality.
Network security is becoming more accessible and intelligent. Consider your unique company needs when making decisions on how you’ll secure your private data.
For instance, choosing the best VPN for privacy depends on a range of factors – speed, features, price, etc. Determine the features you need and research some of the most reliable services in the market, like NordVPN, SurfShark, and ExpressVPN just to name a few.
Present Plan to Management
When you present the security budget plan to senior leaders of the business, it’s vital to have the most in-depth information available so that you don’t have to go back and gather more information and resources later.
Present the advantages of the approach you wish to take, as well as what actions need to be taken, who will be involved, the full cost breakdown, etc.
Open with sharing about the security gap issue that the security plan is looking to solve – essentially, what are the main issues with security? What needs to be done with the budget to rectify this? That’s your security gap.
Benefits to communicate to management:
- Cost savings (with reference to money and time)
- How it supports revenue generation
- How the plan helps to manage risks (and what risks)
- How it solves the security gap.
How to Plan for Unexpected Security Incidents?
Planning for unexpected security incidents is crucial for any organization. Here are several strategies to ensure you are prepared:
- Create a Contingency Fund: Set aside a specific percentage of your emergency security budget. This fund should be easily accessible to cover unexpected costs, such as repairs, system upgrades, or hiring additional personnel during a crisis.
- Conduct Risk Assessments Regularly: Schedule regular risk assessments to identify potential vulnerabilities in your security system. Understanding where your weaknesses lie allows you to allocate resources more effectively and prepare for possible incidents.
- Develop an Incident Response Plan: Outline clear response procedures for security breaches or incidents. Ensure all employees are trained on these procedures and know their roles in case of an emergency. This plan should include steps for communication, containment, and recovery.
- Invest in Insurance: Consider purchasing insurance coverage that specifically addresses security incidents. This can help mitigate financial losses from data breaches, theft, or property damage.
- Monitor Trends and Threats: Stay informed about your industry’s current security threats and trends. This proactive approach will help you anticipate potential incidents and adjust your budget and planning accordingly.
Your Company’s Security Plan: The Bottom Line
It is important to prioritize funds in a security budget in such a way that budget cuts aren’t made from other areas of the business.
Ensure that the source of the funding isn’t jeopardizing other business functions and outline the actions that will be taken to stick to the budget. This means being prepared with how resources are allocated for both preventative and reactive security.
A company’s success and safety are impacted by the security measures it has in place. Having a security framework that is intelligently strategized will serve to make the company more money in the long run.
Consider the unique security gap of your business and leverage the use of innovative digital means of data storage, privacy measures, and information sharing.
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