Only half of companies have the budgets to mitigate cybersecurity risks: study

Diving brief:

  • In a landscape of growing threats and continued macroeconomic pressure, only about half of companies are receiving the appropriate budgets they need to meet their current cybersecurity demands, according to research released Tuesday by the Neustar International Security Council. .
  • Less than a third of IT and security professionals said their cybersecurity budgets would stay the same this year, while 6% expect them to drop. Of these, 44% said stagnation or budget cuts would expose their businesses to more cyber risks, according to the study.
  • “Macroeconomic issues are driving down spending across all sectors, and the way many leaders are going about it by cutting across programs regardless of where they’re making their cuts,” Carlos Morales, SVP Solutions at Neustar Security Services, said.

Overview of the dive:

A growing number of large corporations in the United States and abroad are cutting budgets in an uncertain economic environment. A number of top companies, including Amazon, Microsoft, Alphabet and others, have announced thousands of job cuts in recent weeks. The layoffs come after the Federal Reserve raised rates several times to calm rising inflation.

The Neustar Report, based on responses from 304 senior professionals in the United States, Europe, the Middle East and Africa, found that 4 out of 5 executives believe that the C-suite and the board of their organizations understand the existing threat levels. But more than two-thirds of respondents agreed that budget constraints would limit their ability to respond to these threats.

The majority of respondents, 60%, said the most current risk is the growing sophistication of attacks, but more than half are also wary of the growing number of attacks.

Part of the long-term risk companies face is in many cases that they have converted to long-term hybrid working, where employees only come into the office a few days a week and work from home the rest of the week. week. The geographically wider deployment of workers has made it more difficult to protect the workplace from outside threats.

Morales said enterprises are increasingly turning to managed service providers to provide cloud-based security.

The study, which was conducted in the fall of 2022, reflects some issues raised by cybersecurity vendors regarding customer spending decisions. In November, Palo Alto Networks reported a number of clients were taking a closer look at potential security arrangements.

Companies have also started consolidating the number of security vendors they work with, in part to reduce complexity, but lowering costs has also been a factor.

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