The Rising Cost of Cybersecurity: How Companies Can Effectively Communicate the Value of Protection
Data shows that financial motivation is a huge incentive for threat actors, which explains the rising prevalence of ransomware and other extortion breaches in the corporate world. In 2023 alone, business email compromise (BEC) complaints received by the FBI amounted to over 2.9 billion.
This situation highlights an uncomfortable truth that has become clearer over the years: cybersecurity is no longer just about technology—it’s about the very survival of a business.
According to IBM’s 2024 Cost of a Data Breach Report, the global average total cost of a data breach reached $4.88 million, marking a 10% increase over the previous year and setting a new record for the highest total cost to date.
Despite this, global cybersecurity spending by organizations keeps rising. How can we best convey the value of cybersecurity processes to stakeholders, including the leadership, partners, and customers?
The Escalating Financial Impact of Cyberattacks
The surge in cybersecurity costs underscores the growing financial burden that cyberattacks are placing on businesses worldwide. However, it’s crucial to acknowledge that the true impact of data breaches extends far beyond immediate financial losses. The long-term financial implications of a cyberattack can be equally, if not more, devastating, often leaving lasting damage that can take years to remediate. Some of these include:
- Business disruption: cyberattacks halt operations and impact productivity negatively. According to IBM’s report, 70% of organizations suffered significant business disruptions due to breaches. These disruptions often have cascading effects on supply chains, customer service, and overall productivity.
- Legal and Regulatory Costs: in recent times, with the introduction of stringent data protection regulations around the world, companies may be liable to hefty fines if they fail to protect customer data.
- Loss of Intellectual Property: data breaches can lead to the theft of valuable intellectual property, such as patents, trade secrets, and proprietary information, impacting a company’s competitive advantage and future earnings.
Bridging the Communication Gap
To effectively communicate the importance of cybersecurity investments and bridge the communication gap, organizations need to employ strategies that resonate with stakeholders. Some key approaches to making a compelling case for cybersecurity investments include:
Use a Common Language
It is well-known that technical jargon creates barriers when trying to communicate with non-technical people. Yet, it appears that nowhere else is this more ignored than in the field of cybersecurity.
Failing to break down technical concepts in a way that non-technical people can understand contributes to why stakeholders, especially those in leadership positions, traditionally perceived cybersecurity as an IT issue rather than a shared business responsibility.
Effective communication is not just about conveying information; it’s also about building relationships and fostering trust. So, you need to translate technical risks into business terms that resonate with stakeholders.
Make Data More Engaging and Accessible
Often, the format in which the data is presented creates a barrier when discussing cybersecurity costs with non-technical stakeholders. For instance, many people might find lengthy technical information from text and tables daunting. This is why visual aids are important.
Charts, graphs, infographics, explainer videos, etc. They all come in handy to make information more engaging and digestible. These visuals are easy to create too, especially when using software tools. For instance, the cost of making explainer videos is nothing compared to the cost of wrong decision-making due to ineffective communication.
In any case, written text is not entirely useless, depending on the format it is presented in. For instance, FAQs proactively address common concerns that your audience may have. This can help preempt common misunderstandings and ensure that everyone is on the same page.
Align Security Goals with Business Objectives
To bridge the communication gap with non-technical stakeholders, it’s crucial to emphasize that cybersecurity investments should directly protect an organization’s most valuable assets, as this is where the interests of stakeholders lay.
At the least, you need to identify your ‘crown jewel’ data and assets – those most critical to the enterprise and most attractive to attackers. For example, a pharmaceutical company might prioritize protecting its research data and intellectual property, while a financial institution might focus on securing customer financial information.
When stakeholders understand that effective cybersecurity directly protects what matters most to the organization, they are more likely to support and prioritize security initiatives. It also fosters a shared responsibility since cybersecurity is framed as an enabler of business growth.
Quantify Risks and Impacts in Business Terms
It often helps when stakeholders get to engage with numbers that quantify the risks involved in certain cybersecurity practices. This is why presenting cost-benefit analyses and ROI projects for security investments allows stakeholders to evaluate the financial justification for cybersecurity measures.
Particularly, you need to be able to present clear comparisons between the costs of implementing and maintaining security measures (e.g., firewalls, intrusion detection systems, security awareness training) and the potential financial losses that those measures could prevent.
Supplement your presentation with real-world examples of organizations that experienced significant financial losses due to cybersecurity breaches (and those that successfully mitigated losses through effective security) to make the information more tangible.
Best Practices for Effective Cybersecurity Communication
Besides the broader strategies, in this section, we highlight specific practices that you can adopt to improve stakeholder engagement concerning cybersecurity in your company.
- Determine what value means to your organization and use this understanding to communicate the importance of cybersecurity.
- Create a communication roadmap that guides what cybersecurity information is shared, when it is shared, how it is shared, and with whom. This plan ensures stakeholders are informed and can make decisions that improve the cybersecurity posture.
- Determine the most effective channels for reaching different stakeholders with cybersecurity information, considering preferences for emails, video calls, or collaborative platforms.
- During the onboarding process, identify a point of contact within your team for addressing any cybersecurity-related issues.
- Create comprehensive playbooks for various cybersecurity scenarios, outlining step-by-step response strategies, communication protocols, and well-defined roles and responsibilities.
- Recognize that different stakeholders have varying levels of understanding, concerns, and interests when it comes to cybersecurity. Tailor your communication style and focus to accommodate these differences.
- When faced with a cybersecurity incident, acknowledge if you don’t have all the answers immediately. It’s better to be transparent about what you’re still investigating than to offer inaccurate or incomplete information.
- Take responsibility for cybersecurity incidents and focus on solutions rather than dwelling on blame. Encourage open discussions about failures as learning opportunities to improve security mechanisms.
- Don’t wait for a cybersecurity incident to occur before communicating with stakeholders. Provide regular updates on security posture, emerging threats, industry news, policy changes, and scheduled maintenance.
- Encourage regular two-way communication with stakeholders about cybersecurity risks, trends, and mitigation strategies. This creates an open environment for questions, feedback, and collaboration.
- Define key cybersecurity performance indicators (CPIs) and track them regularly. Communicate progress and results to stakeholders using clear metrics and data visualizations, highlighting the value and effectiveness of security investments.
Conclusion
Cyberattacks are a growing concern across the world, and communication about cybersecurity must hit the right spot. To stem the tide, cybersecurity leaders need to adopt best practices for communicating the value of cyber protection to stakeholders.
Editor’s Note: The opinions expressed in this guest author article are solely those of the contributor and do not necessarily reflect those of Tripwire.
