Standards for cyber security play a significant role in risk management and security enhancement. Standards aid in defining the capabilities required for secure systems as well as standard security needs. According to the Hiscox Cyber Readiness Report 2021, a small firm in the US may expect to pay an average of $25,612 for a single cyberattack. Only around 40% of SMBs make a profit, so the loss of data and the cost to recover it, as well as the downtime required to restart operations, can be a high price to pay.
The majority of an enterprise’s compliance-related expenses are devoted to purchasing and implementing data security and incident response systems. In order to achieve compliance goals, firms in the Ponemon survey spent an average of $2 million on security systems. According to the report, organizations today spend on average 36% more on data security solutions than they did in 2011 and 64% more on incident response tools.
Financial enterprises often spend substantially more on compliance initiatives—$30.9 million annually—than companies in other industries. Businesses in the industrial and energy/utilities sectors incur yearly compliance-related expenditures of $29.4 million and $24.8 million, respectively.
Weighing the cost of responding with one attack against the benefit of taking preemptive steps is crucial because cyberattacks simply go on becoming more sophisticated and complex every day. Risk reduction puts your company in a better position to react, bounce back, and retain current clients, which is significantly more cost-effective than finding new ones.
