How Much Should You Spend on Cybersecurity in 2022? by Lynn Goodendorf Spring 2022 - 0 views
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Many hospitality companies are struggling with the question of how much to spend on cybersecurity especially in the context of revenue losses related to the pandemic. The challenge is that the risk of cyberattacks is rapidly escalating. There are several drivers of this alarming trend. First, ransomware is growing in severity both in the scope and the scale of attacks as well as the amount of the ransom demand. Next is the increase in remote work during the global pandemic and the rush to facilitate at home working. And finally, small companies are increasingly targeted because they are “easy” victims and typically more vulnerable. As you might expect, the cost of cybercrime increased more than 50% from 2019 through 2020. According to a report by McAfee¹, the global cost is estimated to be more than $1 trillion and monetary losses are estimated at $945 billion. Examples of hidden or intangible costs that are difficult to measure include system downtime, reduced efficiency, brand damage and loss of trust. Expenses that are direct and easier to measure are consultant services, legal fees and cyber risk insurance premiums. Below is a chart published in the McAfee report that illustrates this trend.
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Ransomware - a Denial of Service/Operations and often includes a data breach Business Email Compromise (BEC) - often involves Funds Transfer Fraud Computer Data Breach - theft of personal data such as cardholder data, social security numbers, driver’s license numbers, passport numbers and details, etc. What is the best way to go about budgeting for cyber security risk? As a starting point, be sure that you have a qualified information security professional managing your program of work. Regardless of the amount you spend, a knowledgeable and experienced cybersecurity professional can make well informed judgments about priorities in expenditures. There are three well established strategies that can work together in combination. Each strategy has advantages and drawbacks and it is not recommended to rely on a single approach. Below is a description of each way to go forward.
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STRATEGY A: Key Ratios of Spend
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The writer of this article is Hospitality Upgrade. It includes the expanding worries of the hotel sector. The key ratio of spend, gap analysis, and a focus on compliance are the top three main strategies being used by the hotel sector. In addition, the other measures are made by businesses to aid in preventing such breaches and the financial repercussions that result from them.