Cary, North Carolina, August 20, 2024, CyberNewsWire

In modern businesses, cybersecurity is not just a technical issue, but also a vital financial safeguard. With the increasing complexity and frequency of cyber threats, the financial consequences of neglecting cybersecurity training are severe and multifaceted. INE Security, a global leader in cybersecurity training and certification, examines how neglecting this critical aspect of corporate strategy can lead to a financial crisis and provides five key reasons why cybersecurity training is important.

Direct financial impact of cyberattacks

The financial impact of cyber incidents can be enormous. According to a recent IBM report, the average cost of a data breach in 2023 rose to $4.88 million, a 10% increase from the previous year. The same report highlights the value of a solid cybersecurity workforce, showing that the majority of affected companies were understaffed and lost an average of $1.76 million more in data breach costs.

“As cyber threats become more sophisticated, the cost of not investing in cybersecurity training is increasing exponentially,” said Dara Warn, CEO of INE Security. “Effective training is not just a line item – it is an essential investment in the operational integrity and financial security of organizations. Choosing the right training partner and prioritizing enterprise cybersecurity training should not be viewed as optional by CISOs and CIOs.”

Operational disruptions

In addition to the direct costs of a cyberattack, business interruptions often require extensive system restores, tie up resources, and cause significant revenue losses, as was recently the case for CDK Global. The provider of software solutions for car dealerships was hit by a ransomware attack that crippled the auto industry and exposed the company to significant litigation risks – a double whammy where the full extent of the damage will likely not be apparent for years.

Long-term reputational damage

The indirect costs of cyber breaches, such as reputational damage, can be more severe than the immediate financial loss. Following the Capital One data breach in 2019, which affected approximately 100 million customers in the US, the bank faced not only fines from regulators but also a significant loss of trust from its customers. The incident resulted in lawsuits and a decline in customer growth. This highlights how reputational damage can translate into long-term financial loss and highlights the fragility of critical IT infrastructure.

Regulatory and compliance costs

Neglecting cybersecurity training also exposes companies to regulatory risks. Failure to comply with frameworks such as GDPR in Europe or HIPAA in the US can result in significant fines. In 2020, Marriott was fined over $23 million by the UK Information Commissioner’s Office for a breach that affected millions of guests. Although the fine was reduced from its original $124 million due to mitigating factors, including the economic impact of COVID-19, it underscores the significant financial penalties associated with failing to protect customer data.

Arguments for investing in cybersecurity training

Investing in cybersecurity training is not just about mitigating risk, it’s also about financial prudence. Well-trained employees are less likely to fall victim to phishing attacks or other forms of social engineering, significantly reducing the risk of security breaches. Additionally, a knowledgeable IT team can ensure systems are kept up to date and protected from new threats, reducing the likelihood of costly incidents.

From a financial perspective, the return on investment for cybersecurity training is clear. The cost of training and upskilling staff is significantly less than the cost of recovering from a cyberattack, not to mention the long-term savings from avoiding fines and reputational damage.

Arguments for investing in cybersecurity training: Five reasons to invest

Comprehensive protection through education

Cybersecurity training empowers employees by educating them about the risks associated with cyber threats and the methods these threats can use to penetrate a business. When employees understand the tactics used by cybercriminals, such as phishing, ransomware, and other forms of social engineering, they are better able to identify suspicious activity and are less likely to inadvertently expose the business to an attack. This type of training is critical because human error remains a leading cause of security failures.

Expanding your skills through certifications

Acquiring the best cybersecurity certifications such as Junior Penetration Tester (eJPT), CompTIA Security+, and Certified Information Systems Security Professional (CISSP) provides IT professionals with comprehensive knowledge and skills that are critical to effectively managing and mitigating cybersecurity risks. These certifications are industry-recognized and demonstrate a professional’s ability to design, implement, and manage a world-class cybersecurity program. They are not only educational tools, but also instrumental in shaping the cybersecurity landscape within an organization.

Use cybersecurity training to meet compliance requirements

With the increasing number of data privacy regulations such as GDPR in Europe and CCPA in California, cybersecurity training is becoming essential to ensure compliance. Training programs that include components on regulatory requirements help companies avoid costly fines and litigation by informing employees of their responsibilities under these laws. Compliance-focused training ensures that the company not only meets current legal standards but is also prepared for potentially new regulations.

Strategic investment in future security

The cost of implementing a robust cybersecurity preparedness training program is often dwarfed by the costs associated with a data breach, including remediation costs, fines, lawsuits, and reputational loss. By investing in ongoing and updated training programs, companies can create a culture of security that permeates all levels of the organization. This culture not only increases security, but also creates a company ethos where security becomes a daily operational element, as integral as customer service or quality control.

Attracting and retaining top talent

Companies that offer ongoing cybersecurity training opportunities are more likely to attract and retain top talent. Professionals in the field often seek environments where they can expand their skills and take on new challenges. Access to training and development programs makes a company more attractive to ambitious cybersecurity professionals and increases its reputation within the industry.

Diploma

The financial risks associated with cybersecurity are too high to ignore. As cyber threats continue to evolve, the cost of inaction will only increase. Organizations must view cybersecurity training not as an optional expense, but as a critical investment in their financial security and operational integrity. By making cybersecurity training a priority, organizations can protect themselves not only from the immediate threats, but also from the far-reaching financial impact that a single breach can bring.

About INE Security:

INE Security is the leading provider of online networking and cybersecurity training and certification. With a powerful hands-on lab platform, cutting-edge technology, a global video distribution network, and world-class instructors, INE Security is the first choice for Fortune 500 companies worldwide when it comes to enterprise cybersecurity training and for IT professionals looking to advance their careers. INE Security’s learning paths offer an unparalleled depth of cybersecurity expertise and are committed to providing advanced technical training while reducing the barriers globally for those seeking to pursue and succeed in an IT career.

contact

Director of Global Strategic Communications and Events
Kathryn Brown
INE Security
(email protected)