Cyber security, costs or profit center

Cybersecurity is often seen as a cost to a business because it is an investment that is not perceived to generate revenue directly.

Cybersecurity measures typically involve purchasing and deploying software, hardware, and other tools to protect an organisation’s information systems and data from cyber threats like hacking, malware, and data breaches. These measures require ongoing maintenance, updates, and monitoring, all of which require resources and funding.

In addition, cybersecurity measures can be seen as a sunk cost because they are often deployed in response to past incidents or potential threats rather than as a direct driver of revenue. This means that organisations may be hesitant to invest in cybersecurity measures once they have experienced a breach or other security incident, leading to a reactive rather than proactive approach to cybersecurity.

Furthermore, cybersecurity can be seen as an intangible asset, making it more difficult to quantify and justify its value in terms of revenue generation.

Acknowledging these facts, a different approach to cyber security costs might be in order.

Cybersecurity can be a powerful tool for building trust, managing risk and driving innovation. By prioritising cybersecurity, you can differentiate your organisation from competitors and position yourself as a reliable and secure partner for your customers. We can break this down into the following steps.

1. Customer trust: Strong cybersecurity measures can help build customer trust by demonstrating that your organisation takes data security seriously and can be trusted with sensitive information. This is regularly seen when your customers request that you respond to a “Third Party Risk Assessment”. Being able to respond positively, with evidence and artefacts, shows a strong security profile and gives your customers a high sense of comfort. Customers are more likely to do business with companies they trust, which can improve your competitive position and increase customer loyalty and brand reputation, ultimately leading to increased sales and revenue.
2. Competitive Advantage: As many organisations are now requesting validation of their vendor’s security profile, undertaking a cyber security program of work or certification to the relevant standard allows you to prove to customers and prospective customers that you are a secure organisation to do business with. This provides you with a competitive advantage over your competitors.
3. Compliance: Strict regulatory requirements for cybersecurity exist in many industries. Complying with these regulations can help organisations demonstrate their reliability and trustworthiness to customers, providing them with a competitive advantage in the market.
4. Reputation: Investing in cybersecurity can minimise the risk of a security breach, which in turn can protect your brand reputation and prevent loss of customers. By prioritising cybersecurity, organisations can distinguish themselves from competitors and maintain their brand reputation.
5. Innovation: Organisations prioritising cybersecurity are often more innovative in their approach to technology. They are more likely to adopt new technologies and embrace digital transformation, which can give them a competitive edge over less tech-savvy competitors.
6. Risk management: By investing in cybersecurity, you can manage the risk of a security breach more effectively. This can reduce a breach’s potential financial and reputational damage, giving you a competitive advantage over companies more vulnerable to cyber-attacks.
7. Cost savings: Investing in cybersecurity can save companies money in the long run. Cyber-attacks can be costly to remediate, and data breaches can result in legal fees, fines, and lost business. By preventing these incidents from occurring in the first place, companies can avoid these costs and save money.

As seen from the above items, Investing in cyber security can safeguard organisations from the detrimental impact of a security breach and serve as a catalyst for a more profitable business. By prioritising cyber security, organisations can reduce the risk of costly incidents and potential reputational damage, ensuring operations continuity and preserving customer trust. As a result, they may gain a competitive advantage in the market and enjoy greater profitability.