Question 1

How is the cybersecurity budget calculated?

Accepted Answer

We use three industry-standard methods: 1) Percentage of IT budget (based on industry benchmarks from Gartner), 2) Percentage of annual revenue (0.5%-4% depending on company size), and 3) Per-employee cost ($2,000-$2,800 per FTE). The tool calculates a weighted average with weights of 40%, 35%, and 25% respectively for the most accurate recommendation.

Question 2

What compliance requirements affect my budget?

Accepted Answer

Compliance frameworks like HIPAA, PCI-DSS, SOC 2, and others significantly impact security budgets. Each framework requires specific controls, audits, and documentation that add to costs. The calculator factors in your selected compliance requirements and adjusts the budget recommendation accordingly.

Question 3

How much should a small business spend on cybersecurity?

Accepted Answer

Small businesses (under 50 employees) should typically allocate $50,000-$150,000 annually for cybersecurity, or roughly 10-15% of their IT budget. This includes basic protections like endpoint security, email security, MFA, backups, and security awareness training. High-risk industries or those with compliance requirements will need larger budgets.

Question 4

What should be included in a cybersecurity budget?

Accepted Answer

A comprehensive cybersecurity budget should include: security tools and software (EDR, firewalls, SIEM), managed security services (MDR, SOC), security staff or vCISO services, training and awareness programs, compliance audits and assessments, incident response planning, cyber insurance premiums, and backup/disaster recovery solutions.

Question 5

How often should I review my cybersecurity budget?

Accepted Answer

Review your cybersecurity budget annually during budget planning cycles, but also reassess when: your company grows significantly, you face new compliance requirements, there's a major security incident in your industry, you adopt new technologies (cloud, IoT), or threat landscapes change significantly. Quarterly reviews help ensure your budget remains adequate.

Cybersecurity Budget Calculator

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Key Security Terms

Shared Responsibility Model

Privileged Access Management (PAM)

Security Information and Event Management (SIEM)

Endpoint Detection and Response (EDR)

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