Here are three key reasons why:
First, cyber attacks can cause devastating financial losses. Beyond the immediate costs of data breaches or ransomware payments, organizations face expenses related to system recovery, legal proceedings, regulatory fines, and lost business opportunities. For example, the average cost of a data breach in 2023 was over $4.45 million according to IBM’s Cost of a Data Breach Report.
Second, organizations have a responsibility to protect sensitive data. This includes customer personal information, intellectual property, financial records, and employee data. A breach of this information can severely damage customer trust and brand reputation, often taking years to recover from. Many organizations never fully regain their previous market position after a major security incident.
Third, regulatory compliance requirements are becoming increasingly strict. Laws like GDPR, CCPA, and industry-specific regulations mandate proper cybersecurity measures. Organizations must demonstrate they are actively managing cyber risks or face significant penalties. Additionally, many business partners and customers now require proof of cyber risk management practices before entering into business relationships.