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How to Assess the ROI of Your IT Security and Compliance Plan

July 3, 2024

In today's digital landscape, investing in IT security and compliance is not just a necessity but a strategic business decision. For small businesses, understanding the Return on Investment (ROI) of such programs is crucial. Here, we guide you through assessing the ROI of your IT security and compliance programs.

1. Understand the Cost of Security Breaches for Small Businesses

The costs of security breaches for small businesses can be significant and multifaceted. These costs typically include:

  • Operational Impact: A security breach can lead to significant downtime, disrupting business operations.
  • Financial Impact: The costs include direct financial losses, expenses for remediation, and potential fines for compliance violations.
  • Legal Risk: Breaches often lead to legal consequences, especially if customer data is compromised.

2. Learn the Broader Risks Beyond Direct Costs

The broader risks of security breaches for small businesses extend well beyond direct financial costs. These risks can have a significant impact on various aspects of the business and can sometimes be more challenging to address than the immediate financial losses. Here are some of these broader risks:

  • Reputation: Security breaches can damage your business's reputation, leading to lost trust among customers and partners.
  • Recruitment: A company known for poor cybersecurity may struggle to attract top talent.
  • Customer Satisfaction: Ongoing security issues can erode customer loyalty and satisfaction.

3. Implement Immutable Backups: A Key Contributor to ROI

Immutable backups are a critical component in modern data protection strategies, and they significantly contribute to a business's return on investment (ROI) in several ways. An immutable backup is a data backup that is write-once and read-many (WORM), meaning once the data is written, it cannot be modified or deleted for a set period. This feature makes it extremely valuable, particularly in the context of cybersecurity threats like ransomware.

  • Creating immutable backups is vital for business resilience. These backups cannot be altered or deleted, ensuring data integrity even in a breach.
  • This contributes to ROI by minimizing the impact of data loss and facilitating quicker recovery post-breach.

4. Use Key Metrics for Measuring ROI

Defining key metrics for measuring Return on Investment (ROI) for IT security and compliance is crucial for several reasons:

  • Reducing False Positives: A high number of false positives can drain resources. Effective security measures should minimize these.
  • Preventing Security Breaches: The primary goal of any IT security program is to prevent breaches, a critical metric for ROI.
  • Maintaining High Uptime: Consistent uptime is key to operational efficiency and customer satisfaction.
  • Employee Compliance Levels: High compliance levels indicate effective training and awareness programs, contributing to overall security.
  • Reducing Service Tickets: A reduction in security-related service tickets can indicate an effective IT security program.

Assessing the ROI of your IT security and compliance program is essential for understanding its effectiveness and value to your business. Consider the direct and indirect costs of potential breaches, the importance of immutable backups, and key performance metrics to get a comprehensive view of your program's ROI. Learn more about security measures you can take, download our e-book “Security and Compliance for Manufacturing SMBs” today.

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