Guide for Maximizing Cybersecurity Investments Continued
The world of cybersecurity is ever-evolving, and so is the need for businesses to invest in defensive strategies to protect their digital assets. However, evaluating the effectiveness of these investments can be a complex challenge.
Traditional methods, such as the Total Cost of Ownership (TCO) model, capture all costs associated with cybersecurity investments but fall short in providing clear insights into the outcome or money saved by avoiding cybersecurity breaches. This leaves business leaders seeking alternative approaches to measure the return on their cybersecurity investments.
One such approach is the ROSI Model, a simpler method that evaluates the net benefit of total security expenses avoided by comparing it to the investment made in prevention. On the other hand, the Gordon & Loeb Model suggests comparing the cost of protecting data with the potential loss in case said data is stolen, lost, damaged, or corrupted.
The Cybersecurity Maturity Model Certification (CMMC) is another popular methodology for evaluating cybersecurity investments. The CMMC classifies organizations into one of five levels of cybersecurity maturity, providing a benchmark for improvement. However, it's important to note that the CMMC is primarily adopted by organizations involved in the U.S. Department of Defense supply chain, and its use in evaluating the effectiveness of cybersecurity investments is not mentioned in the context of this model.
Companies like Streamscan have successfully obtained CMMC Level 2 certification, demonstrating alignment with NIST SP 800-171 and operational cybersecurity standards. Consulting firms such as URM Consulting also assist a broad range of organizations in implementing and certifying CMMC as a method to measure and demonstrate cybersecurity maturity.
Measuring the level of preparedness can be done by considering the percentage of unpatched IT assets, inappropriate usage activities, and IT assets at risk. The effectiveness of controls can be measured by intrusion attempts denied, unidentified devices on internal networks, response times to security incidents, and access management.
Regular measurement metrics like ROI (Return on Investment) and NPV (Net Present Value) fail to provide insights into the effectiveness of cybersecurity investments. Instead, considering the level of preparedness and controls offers a better approach.
Benchmarks can include independent security ratings, third-party and fourth-party risk indicators, and independent security assessments. The average cost of a data breach can add up to $4.24 million, making it crucial for businesses to invest wisely in cybersecurity measures.
In conclusion, evaluating the effectiveness of cybersecurity investments is a complex challenge due to the difficulty in ascribing values to intangible outcomes. However, by focusing on measures that incorporate costs and value, such as control cost per IT application, the financial value of reduced risk compared to cybersecurity investment, cost per cybersecurity incident, and cost of non-compliance, businesses can make informed decisions about their cybersecurity investments.
