5 trends businesses to consider when planning 2022 cybersecurity budgets

Kaspersky With the end of the year approaching, many companies will look ahead and begin to plan budgets for next year. Now more than ever, planning budgets in advance has become a challenge as the pandemic continues to be an uncertain factor that companies have to consider. Will employees still be inclined to participate in remote work, and how will sales fare due to the economic aftermath of the COVID-19 crisis?

To help businesses understand the best ways to plan budgets for next year, recent research shows the following five areas will be important to consider. 1. Budgets declined in 2021, but that won’t continue to be the case

Cybersecurity budgets for 2021 were planned at the end of 2020, a very uncertain time for businesses due to the pandemic. Therefore, many companies seemed to proceed with caution when it came to setting budget expectations. As a result, the average cybersecurity budget for 2021 remained virtually unchanged for small companies at $267,000, compared to $275,000 in the previous year. In large corporations, the allocation decreased from $14 million in 2020 to $11.4 million in 2021.

However, since spring 2021, analysts have been publishing optimistic forecasts about the growth of the IT and information security market. Gartner predicts an 8.4% growth in overall global IT spending in 2021, and IDC also forecasts strong growth in IT security spending in regions such as Europe and Asia Pacific . These positive predications are coming at an important time as innovation, digitalization of products and enhanced business processes are on the rise making it important for organizations to prioritize cybersecurity investments. 2. Cybercriminals are still at large despite the seemingly steady financial impacts of attacks

The financial impact of data breaches for SMBs grew slightly in 2021, however for enterprises it decreased by 15%. Nevertheless, this shouldn’t be considered as cybercriminals backing down as the scale of the impact depends not only on the complexity of the attack, but also on how the business responds.

For example, a data breach can lead to direct losses including business loss or fines. Further financial impacts also depend on whether a breach has been disclosed to the public. In this case, a company normally has to spend more on additional public relations support or on paying penalties, fines and compensation. As such, the average cost of a data breach for an enterprise that doesn’t disclose the incident is $827,000. However, if the breach leaks to the press, the cost rises to $1.2 million. As it happens, fewer companies disclosed cases of a data breach this year.

Significant cybersecurity investment in incident response to data breaches, such as improvements in software and IT infrastructure or training for employees, was also substantial this year. This is clear from the positive dynamic of threat detection and response speed, with research suggesting that organizations are discovering data breaches more quickly each year. In 2016, only 15% of SMBs and 14% of enterprise companies had systems in place that alerted them to attacks […]

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