Cybersecurity ROI

Cybersecurity is not simply an optional investment; it’s a critical necessity. Businesses and organizations of all sizes need to defend against an escalating volume of cyber threats targeting sensitive data and infrastructural integrity. Yet, a question looms large over many boardroom discussions: What is the return on investment (ROI) for cybersecurity?

Cybersecurity ROI: An Overview

What is cybersecurity ROI? 

Cybersecurity ROI can be somewhat elusive to quantify in traditional financial terms, yet it’s crucial for demonstrating the value and necessity of security investments. Unlike straightforward ROI calculations for sales or production investments, cybersecurity benefits must often be framed in terms of risk mitigation, cost avoidance, and reputation preservation. 

What are some parameters for understanding cybersecurity ROI? 

There are a few factors that can help organizations assess the ROI of cybersecurity:

• Risk reduction and prevention: Cybersecurity investments aim to reduce the risk of breaches, data loss, and other security incidents. An effective cybersecurity strategy can prevent significant financial losses associated with data breaches, such as fines, lawsuits, and the loss of customer trust. Calculating the potential cost of these risks if left unmanaged, compared to the annual spend on cybersecurity, helps illustrate the ROI of such measures.
• Cost of downtime versus security spend: Cyber incidents often result in operational disruptions that can be costly, not only in revenue loss due to downtime but also in the effort required to manage and resolve such incidents. By investing in cybersecurity measures that minimize downtime, organizations can assess ROI by comparing potential downtime costs with their security expenditures.
• Preserving and enhancing brand reputation: Maintaining a strong brand reputation is invaluable, and cybersecurity plays a significant role in this by ensuring customer data remains secure. A data breach can severely damage a brand’s reputation, with extensive negative media coverage and the potential for lost customers. Thus, the investment in cybersecurity also translates into an investment in customer loyalty and brand trust, factors that are more challenging to quantify financially but are invaluable to long-term success.
• Compliance and regulatory measures: Non-compliance with cybersecurity regulations can result in hefty fines and penalties. Investing in robust cybersecurity practices ensures compliance with various regulatory standards, thus avoiding financial penalties. Additionally, proactively managing compliance can open up new business opportunities by instilling confidence in potential customers and partners.
• Efficiency and competitive advantage: Well-implemented cybersecurity frameworks often lead to improved business efficiencies. Automation, secure cloud solutions, and strong data governance can reduce the cost of operations. Moreover, showcasing strong cybersecurity practices can differentiate businesses in competitive markets, providing an edge over rivals.

How can an organization build its own framework for determining cybersecurity ROI? 

To effectively demonstrate cybersecurity ROI, organizations should:

• Establish baselines: Determine current security spending, while identifying historical costs associated with incidents.
• Set metrics and KPIs: Define specific metrics and Key Performance Indicators (KPIs) to measure cybersecurity effectiveness, such as the number of prevented incidents, compliance levels, or time taken to mitigate threats.
• Continuous monitoring and reporting: Regularly assess the performance of cybersecurity measures and update the risk assessment and ROI analysis methodologies.
• Strategic communication: Clearly communicate the value of cybersecurity investments to stakeholders, outlining both financial savings and broader business benefits.

Why is Cybersecurity ROI Particularly Relevant Today? 

Investing in cybersecurity is not merely an additional expense. It’s a critical business requirement that protects against significant risks and enables growth. While quantifying the precise financial ROI from cybersecurity investments can be challenging, understanding the broader qualitative benefits is crucial. Organizations must adopt a comprehensive framework to evaluate cybersecurity ROI through risk reduction, cost avoidance, and the preservation of brand reputation and customer trust. By doing so, businesses can make informed decisions on security investments that support their overarching strategic objectives.

Why focus on cybersecurity ROI? 

The security team may have no problem seeing the ROI of cybersecurity investments, but business leaders need proof that those investments are worth it. By focusing on the ROI of cybersecurity expenditures before business-side leaders question them, you can show them the data, and prove that cybersecurity expenses are indeed justified. 

How Does Flare Help with Cybersecurity ROI?

How can Flare help calculate cybersecurity ROI?

Because it’s difficult to calculate the ROI of preventative measures, Flare recently launched an account and session takeover prevention ROI calculator. This tool uses real-world datasets to provide you with insights into the estimated number of end-user accounts exposed to session hijacking, broken down by industry, as well as the projected cost of an account takeover. 

How does Flare monitor cyber threats?  

Manually scanning for threats to your organization is time-consuming and expensive. Flare’s threat intelligence platform automatically scans the web for threats, constantly monitoring the clear & dark web — as well as prominent threat actor communities — for stolen and leaked information. As soon as your data is  posted where it should not be, Flare sends your team a notification. This allows you to proactively discover leaked or stolen data or attacks that are still in the planning stages. 

What are the key benefits of the Flare platform? 

• Unmatched data collection: Flare uses billions of data points to provide your team with information about your customers’ security stance, relevant threats, and the movement of threat actors between platforms. 
• Transparency: Flare lists every source so you can tell customers exactly where your threat intelligence data is coming from. 
• Automated continuous monitoring: Using an automated solution gives your clients 24/7 coverage, so you will know as soon as their information is compromised.
• A proactive security stance: By actively seeking out potential threats, you can catch breaches early, giving customers an opportunity to take steps to protect their data, systems, and networks.

Cybersecurity ROI and Flare

The Flare Threat Exposure Management (TEM) solution empowers organizations to proactively detect, prioritize, and mitigate the types of exposures commonly exploited by threat actors. Our platform automatically scans the clear & dark web and prominent threat actor communities 24/7 to discover unknown events, prioritize risks, and deliver actionable intelligence you can use instantly to improve security.

Flare integrates into your security program in 30 minutes and often replaces several SaaS and open source tools. Learn more by using our free cybersecurity ROI calculator for Account and Session Takeover Prevention.