June 28

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Understand the true costs of ransomware attacks

Do you understand the costs of ransomware? And how does a business begin to evaluate this? In this blog, we help businesses understand the true costs of ransomware attacks and show how it makes financial sense to bring in third-party security experts and a SOC to secure your business. 

How does one calculate the ROI of cybersecurity investments?

Traditionally, ROI is calculated based on returns on cost.

This equation however usually works for investments bringing positive results such as cost savings or revenue making activities. Cybersecurity is seen as a pre-emptive investment, and its ROI should be based on how much loss the organisation will avoid due to the investment.

Calculating Risk Reduction ROI

There will always be a financial cost implementing cybersecurity and using this formula will help to determine the cost of potential risk versus the cost of control.

The most widely used formula is as follows:

ROI = (reduction in risk ‘£’ – cost of control)

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Cost of control

Formula for calculating cybersecurity risks financials analysis

This formula makes it simpler to understand the true costs of ransomware:

– for your organisation to review the cost of solutions per technical control

– to compare mitigation strategies and determine how the investment in expert third party security specialist SOC weighs up favourably against not having one

Understand true costs of ransomware – reputational damage

As ransomware continues to dominate business and political news, it’s becoming a case of when not if your business is attacked by cybercriminals for ransomware. 

Directors need to weigh up damage to company reputation when deciding to invest in cybersecurity, and how much that is worth to the business. Because being the weak link in a supply chain, or losing personal client data to the dark web will be seen as irresponsible. The consequences of that are immeasurable as clients lose confidence and take their business elsewhere to competitors.

Outsourcing SOC to third party cybersecurity experts

We talk about economies of scale in our SOC as a Service page and Cybersecurity as a service blog post, and with good reason. It’s the most cost-effective way for small to medium-sized businesses to access the talent, specialist software and always-on monitoring needed. All this is supported by a rapid response team looking for any anomalous activity or incident, trained to respond immediately following the * 1-10-60 rule when any threat is detected. Ask your current cybersecurity team if they offer the 1-10-60 level of protection, and if they don’t, then start considering your options – fast. If you’re not sure what to ask your technical team about raising the levels of cybersecurity in your business, this white paper from NCSC provides valuable insights on what to consider in your planning against ransomware attacks.

It’s becoming clear that outsourcing to a specialist team of cybersecurity specialists not only makes financial sense, it equally shows directors have met their regulatory obligation in safeguarding data and client information. 

Read our CyberSecurity – Build it or Buy it guide with our cybersecurity partners Armor on how the financials really do weigh up in favour of bringing in third-party experts. 

Find out how our ISO 27001 and Cyber Essentials verified team of cybersecurity experts are protecting businesses like yours – call us on 020 3756 7706 or email [email protected] and take the step to be properly prepared and protected.

* 1-10-60 rule – one minute to detect an attack, ten minutes to investigate and 60 minutes to remediate. Any longer and hackers can break in.


Tags

cybercriminals, cybersecurity, Hackers, Ransomware, ransomware attacks, risk, Security, SOC, threats


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