The Importance of Measuring Cybersecurity Engagement
Why Measure Cybersecurity Engagement Impact?
Investors today are increasingly aware of the critical importance of cybersecurity in safeguarding their investments. However, understanding how to quantify the impact of cybersecurity engagement can be challenging. In this blog, we’ll explore actionable strategies for investors to measure the effectiveness of their cybersecurity efforts, providing valuable insights into their investment decisions
Investors are eager to ensure that their investments are protected from cyber threats, but they often struggle to assess the tangible benefits of cybersecurity engagements. By quantifying the impact of cybersecurity, investors can make more informed decisions, allocating resources where they are most effective. This not only enhances the security of their investments but also demonstrates transparency and accountability to stakeholders.
Moreover, an inadequate assessment of cybersecurity engagement can result in below-market financial returns. This concept was recently demonstrated by a healthcare company—referred to here as Company X—that suffered a cybersecurity breach. In Q1 2023, a prominent asset manager flagged Company X as the top cybersecurity risk within its investment portfolio, leading to a more thorough analysis of Company X’s cybersecurity practices. Approximately a year later, Company X experienced a hack and, following the revelation of the breach, its performance lagged 7% behind the S&P 500 index.
Key Metrics for Assessing Cybersecurity ROI
Measuring cybersecurity ROI requires evaluating various metrics that demonstrate the effectiveness of security measures. Key metrics include:
- Incident Response Time: The time it takes to detect and respond to security incidents.
- Reduction in Breach Frequency: The number of successful cyber attacks over time.
- Cost of Data Breaches: The financial impact of data breaches, including remediation costs and loss of revenue.
- Security Awareness Training Effectiveness: Assessing the improvement in employee awareness and behavior regarding cybersecurity.
- Regulatory Compliance: Ensuring compliance with industry regulations and standards.
By analyzing these metrics, investors can gain valuable insights into the ROI of their cybersecurity investments, enabling them to optimize resource allocation and mitigate risks effectively.
When it comes to measuring the impact of those cyber security investments, Physis offers the solution. With access to comprehensive sustainability data for over 14,000 companies, investors can assess sustainability data on their cybersecurity investments and mitigate risks effectively. At Physis, we prioritize data security and empower investors to drive positive change while safeguarding their portfolios. Discover how Physis can help you secure your investments and maximize impact today.