As businesses increasingly shift towards digitalization, secure access to apps cannot be overstated. Today, data breaches and cyberattacks are a constant threat, making cloud security a critical business function. It’s especially difficult with collaborative tools where in-house and external team members work on joint projects.

As a web-based interface design and prototyping tool, Figma allows teams to collaborate in real-time, making various design projects easier to manage and execute. Yet, given its collaborative nature and integration capabilities with other tools, this makes Figma’s security a critical concern for these organizations.

In this article, we’ll look at Figma’s access security and highlight some best practices to prevent various risks.

Why is it important to secure access to Figma?

Figma, a collaborative interface design tool, has become an integral part of the work of designers and developers across industries. As a cloud-based application, Figma allows teams to co-design and manage projects easily, bringing together freelancer help and in-house employees allowing them to create, share, and edit designs in real-time. As many enterprise projects are considered confidential information, its secure access has become a growing concern.

Secure access to Figma projects is essential to ensure the integrity of the designs and limit access to protect the intellectual property of the organization or involved individuals. Therefore, its security is a crucial aspect to consider for all users.

Figma security best practices

Several key features in Figma can help organizations to edit privileges, sharing files securely. Here are some best practices that could help your team to secure their work.

1. Consider investing in a professional account

Figma’s Professional plan enhances security measures to offer finer controls over file and prototype permissions. This enables effective management of teams and grants members access to specific Figma file folders and projects. The Professional account also includes unlimited version history, facilitating the tracking of modifications made to a Figma file and identifying the individuals responsible.

2. Use work email addresses for all team editors

If a team member engages in unauthorized activities, it’s a good practice to use work email addresses for all team editors. It enables your company’s IT or security team to promptly revoke edit privileges, maintaining the security and integrity of your organization. This creates an effective safety net against potential threats and can mitigate risks arising from unauthorized actions (i.e. a freelancer going rogue).

3. Create projects backups

Once a project reaches a significant milestone or is considered complete, consider archiving .fig files in a separate file system from Figma. This might involve exporting the final work as PDFs or prototype videos, followed by exporting source files. When the project is officially concluded, relocating these files to a yearly archive with tighter access controls makes sense. Developers can also use these files as a reference for new projects.

4. Ensure that your team owns all Figma files

The ownership of crucial Figma files should be exclusively retained within the team and not granted to external individuals, freelancer colleagues or clients. Figma files include sensitive and proprietary information, including design assets, user interface components, and collaborative work. Therefore, passing ownership to external parties could not only compromise the project’s confidentiality but also pose the risk of unauthorized modifications, distribution, or misuse of the content.

5. Restrict the number of files available for non-team members

Figma offers some access controls built-in. For example, it allows sending invites at the file level. As a general guideline, it’s advisable to refrain from sending invitations to external individuals at the project level unless it’s absolutely necessary. Furthermore, Figma allows granting access solely to prototypes within files. This feature is a lifesaver when individuals require visibility into the prototype without access to the underlying design work. These functions combined allow careful control and protect the access of their design files, ensuring collaboration while maintaining data privacy.

6. Sharing should be invite-only

Files sharing is one of the key priorities when setting up secure access to Figma. While public share links may seem quick and easy, they often fall short of providing robust protection for sensitive information. That’s why it’s highly recommended that the default setting for file sharing should be set to invite only. This way, an additional layer of control and accountability is added. By curating a precise list of invited individuals, the Figma file owner can rest assured that only trusted parties can access the file’s contents.

7. Regularly review sharing permissions

Figma file owners should frequently review the individuals invited to access their files. This helps keep invite-only lists in check, keeping them consistently updated (focusing on disabling publicly available links when they’re no longer needed). It not only ensures data security but also safeguards the integrity of the design process. Figma file owners can use this as a proactive measure to mitigate potential security breaches and stay up to date in terms of team access.

8. Handle shared libraries with caution

Shared libraries demand an added level of attention and consideration. It’s imperative to minimize edit access permissions when it comes to critical design libraries. In most cases, this means that individuals outside the team should never have the opportunity to change your design system. By adhering to this stringent approach, you can safeguard the consistency and stability of your design libraries.

9. Enable two-factor authentication (2FA)

The default Figma password protection is inherently vulnerable to various risks like password reuse or exposure through data breaches. 2FA adds an extra layer of authentication beyond just a strong password. It requires the team to provide additional information, typically a one-time password (OTP) or a verification code, usually generated on a separate device. This ensures that even if someone manages to obtain or guess a user’s password, they still need access to the second factor to gain entry.

10. Educate employees about phishing

Many phishing and social engineering attempts rely on tricking users into revealing sensitive information or compromising their accounts. Educating team members about these threats increases their awareness of the tactics employed by malicious actors and may help them to recognize potential attacks. As Figma accounts often contain valuable and confidential information, their hijacking could lead to data breaches or unauthorized modification to design files. Better-educated employees can protect their accounts better, use stronger passwords, and be cautious about sharing account information.

How can NordLayer help?

Figma is a modern necessity for most creatives and designers. With flexible tools to connect everyone in the design process, it helps to deliver better products and services faster. From websites, applications, and logos — Figma allows users to improve workflow and get creative. Yet, its security is a concern requiring finding a balance between security and ease of use.

Secure access to SaaS apps can be easily improved by implementing IP allowlisting with NordLayer. Our tools help to manage access securely, secure network edges, and track user actions across endpoints. Providing an encrypted and secure internet connection safeguards your team’s Figma activity.

Contact us today, and discover how to combine the benefits of Figma with airtight security.

Building a cybersecurity strategy is challenging. It requires more than just technical knowledge and managerial skills but also demands financial resources.

Business budgeting tendencies show that cybersecurity investments receive only a small part of the allocated IT budget. Cybersecurity funds must be distributed wisely to ensure valuable outcomes, prove the chosen security direction effective and minimize resources’ waste.

The main challenge is how to achieve effective security spending. How much should businesses allocate to cybersecurity, and what factors like company size or maturity does it depend on?

According to Statista, information security investments in different categories continuously grow. Projections for 2024 indicate worldwide spending on information security will double compared to 2017.

The trend confirms the necessity of considerable cybersecurity funding. To understand it better, let’s dive into research-based data on how businesses of different sizes and cybersecurity maturity distribute their allocated budgets.

Research methodology

NordLayer surveyed 500 non-governmental organizations across Canada, the United Kingdom, and the United States. An external agency conducted the surveys between March 15 and 25, 2023.

Industries and subindustries represented in the research include business management and support services, e-commerce, education, finance and insurance, health care, information and communication, IT, professional and technical services, and consulting.

The survey explored the organizations’ cybersecurity maturity level (Beginner, Basic, and Advanced), their cybersecurity solutions, and the presence of an in-house specialist or responsible department. It also included questions about cyber incident costs and allocated budgeting for IT and security in the period of 2022-2023.

Companies were segmented by size:

• Small companies: 1-10 employees.

• Medium companies: 11-200 employees.

• Large companies: 201+ employees.

Cybersecurity landscape and the importance of budgeting

The mantra “cybersecurity keeps evolving, so do cyber threats” remains relevant today, emphasizing the need for strengthening business protection measures. As the significance of different types of attacks shifts, mitigating one risk at a time is not a practical solution.

For instance, just last year, ransomware attacks held the top position on the threats list, alerting everyone to stay vigilant. This year, according to Statista, the threat outlook for global companies highlights business email compromise and/or account takeovers (33%) as the most prominent cyber risk surpassing ransomware (32%).

Choosing comprehensive cybersecurity tools and solutions helps to achieve the flexibility needed to adapt to dynamic technological and risk change. A sufficient budget is key, so let’s explore how much companies of all sizes invest in building their cybersecurity strategies.

Understanding the context of digital attacks

Data speaks volumes, so let’s begin by analyzing the culprit behind the need for cybersecurity investments. The survey asked companies about any cyber incidents they encountered in 2022.

The list of top 10 cyberattacks starts with phishing (39%) and malware (34%) attacks firmly holding the first two positions. Despite an intense background of cyber incidents, nearly one-fifth of the companies surveyed didn’t encounter any accidents related to digital threats.

The scope and type of cyber incidents may depend on a company’s size or the cybersecurity maturity of an organization.

Correlation between cyber incidents and company size

Organizational size usually is misinterpreted in evaluating the likelihood of a cyberattack. Small companies tend to argue they lack valuable assets of interest to malicious actors, requiring less protection.

However, from the first glance at the research data, the trend confirms that medium and large companies are exposed to cyber incidents more often. While 42% of small companies claim they didn’t encounter any cyber incidents in 2022, it accounts for less than half of them.

Large enterprises tend to suffer from malware (43%), social engineering (30%), and insider threats (29%). Compared with the other two categories, medium-sized businesses were exposed most to data breaches (34%) and DDos/DoS attacks (27%).

However, identity theft (27%), compromised/leaked passwords (23%), and ransomware (19%) impact companies with either 11 employees or 201+ to a similar extent.

It’s important not to forget that size doesn’t make one immune. Only the form and approach of malicious actors can differ. Frequency is only one of the aspects to consider when analyzing the intensity of attacks but not the overall impact on business continuity.

Cyber preparedness as digital threat prevention

Company size is more of a predetermined factor rather than an easily controllable aspect of the business. Conversely, cyber preparedness is a decision-based measure of whether an organization invests and focuses on cybersecurity awareness.

Interestingly, higher cyber frequency of attacks is recorded for companies with advanced cybersecurity preparedness. Why is that? A few possible reasons explain this trend.

Companies with a cybersecurity awareness mindset are more likely to assess the risks they face. To mitigate identified risks, security managers implement solutions to prevent, detect, or proactively hunt threats. Monitoring provides explicit data on cyber events or existing breaches, implying that organizations at the basic and beginner level of cyber maturity are less aware of what’s happening under the hood.

Digital advancements increase the attack surface of a company. Factors such as zero-day vulnerabilities, lack of sufficient resources, and incompatible effectiveness of cybersecurity strategy can lead to a higher frequency of cyber attacks, particularly when outsourced services and vendors introduce third-party dependency.

Adversary motivation is common to most malicious actors. These attacks are often based on financial gain or political ideology, but some attackers simply seek the thrill of a challenge. Less cyber-advanced and protected companies are an easy catch, making them suitable for training grounds for attackers compared to more well-protected and globally known companies.

Taking a closer look at the comparison between organization size, cybersecurity maturity level, and the frequency of cyber incidents reveals no distinct deviations.

The main insights imply a weak correlation between insider threats and cybersecurity preparedness levels, while the size of an organization doesn’t seem to impact the frequency of data breaches and identity theft.

Despite the size or cybersecurity maturity, businesses depend on the industry dynamics and the services and data they operate on. The human factor, whether as an internal threat or attacker motivation, is purely a wild card in the context of the cybersecurity landscape, irrespective of the company’s size or preparedness.

Real-life scenario: damage incurred to LinkedIn scam victim companies

Let’s take a real-life example to see how LinkedIn scams, common online threats, affect businesses. The critical part is assessing the inflicted damage and exploring what measures can help prevent such risks.

A LinkedIn scam or fake profile aims to gain illicit funds, either through direct transactions or by gathering personal information that can be used to build a pretext for receiving money. Naturally, the question is, how much do businesses lose in such attacks?

Comparing the damages suffered according to company size, tendencies show that all companies are at risk. Small businesses are the least affected (12%), and medium-sized and large enterprises have to pay the price more often — 22% and 24%, respectively.

Financial damages vary from losses of up to 5,000 in local currency for 33% of companies to 10,000 in local currency for 16% of surveyed companies. These numbers should be considered high as a fifth of respondents could not disclose information regarding their financial losses.

Regarding cybersecurity maturity level, losses increase accordingly — 15% of beginner-level enterprises suffer from financial damage, while 19% of basic-level and 24% of advanced-level companies have declared experiencing expenses.

Does it mean that the more prominent and cybersecurity-developed company, the more risks it is exposed to? Not necessarily, as cyber-ready companies tend to allocate a portion of their budget to IT, particularly when improving their cybersecurity infrastructure.

Research findings on cybersecurity budgeting

Budgeting is an abstract and not clearly defined practice that could be followed by pre-defined recommendations to guarantee success. But it is an important part of business planning, although seen differently by organizations.

Research on cybersecurity budget allocations revealed insights into how enterprises of various sizes approach the same challenges. The following findings are based on overall data, considering company size, cybersecurity maturity, and country unless indicated otherwise.

Budget allocation to IT needs and cybersecurity

IT and cybersecurity budgeting are two different segments of financing. The IT covers overall technology investments, including hardware, software, personnel, and cybersecurity. As cybersecurity is just a fraction of the grand scheme, it explains why budgets can be tight and sometimes even non-existent.

In 2022, over 90% of companies distributed some of their budgets to IT needs. Most companies allocated up to 50% of their financial resources, while only 1% of respondents put all their money into IT spending.

Finances allocated directly to cybersecurity spending (besides hardware and software investments) accounted for 84% of received funds in 2022. However, 10% of companies either didn’t find it relevant or had to shift their investing priorities away from cybersecurity. Nearly one-fifth of organizations allocated up to 30% of their funds to digital security.

Half of the small companies mainly invest up to 20% of their budget in upgrading their IT infrastructure. The same tendency appears for beginner cybersecurity maturity-level companies. 14% of small companies and 18% of beginner cybersecurity maturity level organizations chose not to invest in IT needs, while 26% and 31% of these companies did not invest in cybersecurity at all.

On the other hand, large enterprises and advanced cybersecurity maturity level companies tend to allocate more funds to IT, similar to medium-sized companies and basic cyber preparedness level organizations. Large and medium enterprises tended to allocate at least a portion of their budgets to cybersecurity strategy upgrades during the year.

In 2023, the trend shows that fewer companies (88%) distributed company funds to IT needs. Some organizations redistributed their funds to other departments, excluding IT or cybersecurity.

This leads to the conclusion that although small and unadvanced companies allocate fewer funds to IT, they prioritize cybersecurity to a greater extent.

Medium-sized companies, on average, spend almost 30% of their available budget on IT in 2022. However, this allocation changed to 23% in 2023. Basic cybersecurity maturity level companies maintained a balance of 21-27% of IT funding in the last two years, with a growing tendency. Similar trends can be observed in cybersecurity investments for the same category of organizations.

Large and advanced cybersecurity maturity companies demonstrate stability, consistently allocating an average of 24% of funds designated to IT or cybersecurity needs in 2022-2023.

Investment trends for cyber threats management

Risk assessments and mitigation dictate the cybersecurity strategy of an organization. The strategy is built on security policies, tools, and solutions to implement measures that address the established business protection needs.

The cybersecurity strategy is a process that needs to be monitored, adjusted, and improved for better results. As mentioned earlier, the necessity for flexibility comes from ever-evolving digital environments.

We asked companies which solutions and services they use and what is their future investment focus in cybersecurity.

Virtual Private Networks (VPNs) maintain their popularity in securing organization network connections, with over half (59%) of companies using them. Cyber insurance (45%) is a relatively new solution making its way to business cybersecurity, although its focus is on covering the consequences of an incident rather than preventing it.

Spending on cybersecurity solutions, services, and applications will continue to be a priority (59%) in the 2023 budgets. Raising awareness within organizations is as important as companies providing cybersecurity training and increasing dedicated staff for cybersecurity questions.

Compliance plays an important role in the approach to organizational cybersecurity. External audits and preparation for standard information security certifications are equally in focus (37%). However, 17% of respondent companies weren’t able to disclose their plans for cybersecurity budgeting allocation, and 11% said they had no plans for investing in cybersecurity.

It’s concerning to note that 1 out of 10 companies excluded cybersecurity from their budgeting priorities. 34% of those organizations are at the beginner-level of cybersecurity maturity, and 28% of small-sized businesses. Regarding the country, 8% of companies in the United States, 7% of Canada, and 5% of the United Kingdom companies cut their cybersecurity investments for the ongoing year.

Yearly comparison of cybersecurity investments

Plans for 2023 show a slight change but a clear strategy for businesses with advanced cybersecurity maturity. Purchasing security solutions, services, and/or applications is the top priority, accounting for 70% of planned costs. In addition, there is a strong focus on employee education (70%) and increasing staff for cybersecurity questions (63%).

Beginner-level cybersecurity maturity companies fluctuate between 20–30% in the same categories. It indicates awareness present with yet too little security spending allocated.

These companies are smaller, thus easier to manage their scale and exposure to digital threats. For sustainable growth and security, the mindset shift is expected to be cyber-ready for driving large-scale organization protection.

Best practices for developing cybersecurity budgets

Research revealed that cybersecurity spending depends on different factors. It plays a small yet important part in the overall business lifecycle. Investing in cybersecurity is highly recommended to ensure organizational growth and business continuity.

To allocate cybersecurity budgets effectively, evaluate all the components influencing costs, decision-making, and further strategy development. This includes staying vigilant and proactive, planning responsibly, reusing resources (talent, tools, processes) sustainably, and aiming for growth.

Key takeaways: how to identify, estimate, and prioritize security investments

Survey data shows that some companies invest in cybersecurity generously, while others, especially small businesses, tend to refrain from security funding. Naturally, the reason behind it can be related to limited resources, underdeveloped infrastructure and processes, and l time constraints.

Yet poorly protected businesses suffer harder from a cyber incident. Only luck, not size or brand awareness, influences when and how threat actors will target an organization.

1. Acknowledge the change in the cybersecurity landscape

The first step for all decision-makers in the company, from a Chief Information Security Officer (CISO) to Managing Director, is to be aware of cybersecurity challenges and the vulnerability of their business to cyber threats.

Remember about technology upgrades from hardware to cloud-based environments for more resilience and flexibility. Malicious actors look for security gaps to exploit zero-day vulnerabilities.

2. Assess business-affecting risks

All organizations face the risk of cyber-attacks. Some industries have more red flags than others due to the nature of the data they process. The exposure to cyber threats can vary depending on the type of service or product the organization provides or the company’s maturity.

Understanding what security risks, threats, and scenarios your business is most exposed to is crucial to assess security measures correctly.

3. Investigate internal goals

First, investigate how the company’s budgets are allocated to different needs. What are strategic goals and business development objectives to find the place and role of cybersecurity in the organization?

Examine how the company meets compliance and aligns with stakeholders’ requirements. Are there any plans to seek certification from regulatory compliance providers, such as HIPAA for healthcare providers? Certification is a process that requires dedicated resources and, at the same time, provides guidelines for building a more robust cybersecurity strategy.

4. Audit solutions and best practices

Review your security strategy. To some extent, policies, procedures, and tools should already exist unless it’s the very beginning of a company. See what needs improvement and identify what gaps must be addressed as soon as possible.

Are there any processes that could be consolidated or solutions that aren’t used to the fullest? Companies tend to invest in applications – review what apps are utilized and if they satisfy business and user needs.

5. Plan a cybersecurity strategy

Cybersecurity strategy starts from a mindset within the company. The main elements that require continuous investment planning combine:

• Tools & solutions.

• Employee security training and development.

• Dedicated staff, consultants, and outsourced services.

• Developing backup plans for different threat scenarios to ensure a stable business lifeline.

6. Implement cybersecurity tools and policies

After evaluating the business needs for security, select solutions and tools that best suit your case. It’s beneficial to have demo calls with vendors and have a trial period to test tool adoption within the organization.

Once chosen, deploy tools, upgrade policies, and onboard the team to the new cybersecurity strategy.

7. Review & adapt to business needs

Implementing a solution and introducing new processes doesn’t end your cybersecurity strategy journey. Test, monitor, and confirm its effectiveness. Ongoing monitoring requires a dedicated team to ensure a smooth transition to a new way of working.

Whether your organization chooses to have an in-house or outsourced dedicated cybersecurity staff, it is important to allocate the necessary investments. It is recommended to choose a solution that is sustainable and easy to manage.

8. Update & make cybersecurity an ongoing process

Work on new and follow-up business initiatives in accordance with your cybersecurity strategy. Investigate what areas need changing, upgrades, and improvements for another implementation cycle.

Coherent tracking and planning help make next year’s cybersecurity budget easier. It is essential to invest in security training, tools, and dedicated employees in the company and view security as continuous learning and growth.

Following recommendations for cybersecurity budgeting

Finances and the effective allocation of limited resources is a sensitive and complex topic for any organization manager responsible for business planning. This research sheds light on the industry trends regarding how companies approach cybersecurity funding, which is ultimately connected to digital threat prevention.

Further investigation and insights are beneficial for informed planning, so explore other materials from NordLayer for a better understanding and planning of the cybersecurity budget:

Cost-benefit analysis of cybersecurity spending

A comprehensive analysis of cybersecurity costs and factors affecting them, benefits of cybersecurity spending, and how to apply it to your organization. In the article, you’ll find more comprehensive information on specific solutions and tools, security spending projections on dedicated cybersecurity staff, and other nuances influencing the cybersecurity strategy.

The study helps better understand the subject and find convincing arguments for discussions with other decision-makers.

Decision Maker’s Kit

This content support platform is dedicated to assisting decision-makers in choosing, explaining, and onboarding their selected cybersecurity solution within their organization. From strategical to explanatory materials, prepared templates, and documentation, the platform provides a better perspective on what’s required and expected when building a cybersecurity strategy for a business.

Projections on security budgeting for 2023

An overview of how much companies plan to allocate to cybersecurity in 2023, considering different factors. The article covers building a budgeting strategy, assessing the expense gap, and exploring investment alternatives such as the cost of a data breach.

The regulatory landscape constantly evolves, and the number of cyber-attacks is rising. Organizations face the challenge of meeting strict and complex requirements for cybersecurity compliance. It is essential for companies to comply with the standards and regulations regarding the safety of information and data privacy that are relevant to the industry and global or local laws. 

This article will help you navigate through the compliance protocol labyrinth and show why implementing adequate solutions minimizes the risk of data breaches.

Reasons for complying with security regulations

Cybersecurity compliance is crucial for all companies, regardless of their size. The IBM Data Breach Report found that in 2022, 83% of organizations impacted by IT incidents had multiple data breaches. Neglecting to invest in robust cybersecurity measures leaves vulnerabilities open to malicious actors and increases the risk of non-compliance.

Why should your organization prioritize security regulations?

Avoiding fines and penalties

To protect access to your sensitive data, you must stay up-to-date with industry-specific compliance requirements. Non-compliance can result in substantial fines. The regulatory controls vary depending on the business’s location or data processing practices.

Some common compliance regulations include:

• European General Data Protection Act (GDPR)

• Health Insurance Portability and Accountability Act (HIPAA)

• Payment Card Industry – Data Security Standard (PCI-DSS)

• International Standard to Manage Information Security (ISO 27001)

• System and Organization Controls Standard (SOC TYPE 1 and 2)

Companies with access to confidential data are at a greater risk of becoming a target for cybercriminals. Protecting sensitive information is vital for maintaining your customers’ trust and enhancing your organization’s reputation. Potential data leaks or theft can cause significant financial losses and damage your reputation.

Upgrading your data management capabilities

Modern businesses need to upgrade their data management capabilities. This includes implementing encrypted data, resource management features, and access control tools like single sign-on (SSO), biometrics, and two-factor authentication (2FA).

For example, healthcare organizations must with the new HIPAA encryption requirements and ensure all sensitive patient data is unreadable, undecipherable, and unusable to unauthorized individuals or software.

The challenges of security compliance control

Regulatory compliance means following rules designed to keep organizations in line with industry-specific laws. These regulations reduce breach risks, ensure companies are transparent, and protect them from financial losses or legal penalties. Compliance also boosts an organization’s reputation, integrity, and standing in the industry. Our comprehensive guide on compliance gives you a bigger picture of this important topic.

Non-compliant organizations face significant penalties. For example, Uber had to pay $148 million to settle a data breach affecting 57 million riders and drivers. Equifax paid $575 million for compromising the data of approximately 147 million people. Violating the General Data Protection Regulation (GDPR) can result in fines of up to $ 23 million for companies with EU citizens in their customer base.

Before discussing ways of reducing risks and implementing cybersecurity controls, it’s essential to understand the challenges your organization needs to overcome in security compliance control.

Challenge 1: evolving security environments

Security threats and compliance demands are constantly changing. New regulations are introduced to address emerging cyber risks, making your organization promptly adapt and adhere to updated controls.

Challenge 2: distributed workforce and endpoints

The remote work model has expanded the attack surface, making endpoints the epicenter of threats. Managing and securing many employee devices presents a challenge for any organization.

Challenge 3: larger teams

Coordinating teams and infrastructures across an extensive working environment complicates compliance management.

Additionally, a data breach can result in higher costs and impacts many individuals.

Challenge 4: multiple regulations

Irrespective of the industry, your business must follow many rules and regulations. And companies with employees in different countries must meet compliance regulations specific to each location. For example, processing payments through point-of-service (POS) devices necessitates compliance with the Payment Card Industry Data Security Control Standard (PCI DSS) standards.

Challenge 5: outdated technologies

Relying on manual methods such as spreadsheets and file shares for compliance updates is time-consuming and falls short of cybersecurity requirements. Keeping up with the changing industry regulations demands advanced tools to maintain secure data protection environments.

Understanding compliance protocols

Compliance rules cover various areas, including data privacy and financial reporting, with variations based on industry and location. Ensuring effective compliance with industry-specific regulations can be complex. Through security compliance management, you can bring security and compliance together.

Let’s now explore major compliance protocols that focus on protecting sensitive data, such as personal information, health records, and payment details.

HIPAA

What is it?

HIPAA, or the Health Insurance Portability and Accountability Act, is a federal law in the United States that ensures healthcare providers handle sensitive medical information according to the same regulations. It consists of four rules that provide guidance on achieving HIPAA compliance.

Best practices for HIPAA compliance

• Familiarize yourself with the HIPAA requirements.

• Create a HIPAA compliance checklist.

• Identify and classify your sensitive data.

• Establish access controls and implement safeguards for Protected Health Information (PHI).

• Consider using a network access solution like NordLayer for easier HIPAA compliance.

With NordLayer’s HIPAA-compliant solution, you can meet healthcare industry regulations without requiring complex advanced setups or lengthy deployments. Gain secure access to every endpoint in your organization, locking down essential apps and databases while maintaining user-friendly accessibility.

GDPR

What is it?

The GDPR, or the General Data Protection Regulation, is a data protection and privacy law that applies to the European Union (EU) and European Economic Area countries. It focuses on protecting the personal data of European citizens and imposes requirements on how companies should handle such information.

The GPDR enables EU citizens to manage their personal data without restrictions. A company must get an individual’s consent before ensuring confidentiality and safety for any data processing activities. Also, the organization informs the affected person and the right institutions in case of a breach.

Best practices for GPDR compliance

• Get familiar with a GPDR compliance checklist for companies.

• Appoint a Data Protection Officer to stay updated on the GPDR requirements.

• Partner with a trusted security service provider.

• Map out your  GPDR compliance strategy and determine what security measures your company needs.

NordLayer’s compliance solutions are user-friendly, requiring no hardware and offering easy deployment, start, and scalability. One of our solutions, Zero Trust Network Access, provides enhanced security through multilayered network access control. With our Virtual Private Gateway, your traffic is encrypted, and your identity remains hidden while connecting to a public Wi-Fi. Our secret remote access solutions, such as Secure Remote Access and site-to-site connections, ensure secure and convenient remote access to devices and networks.

ISO 27001

What is it?

ISO 27001 is a widely recognized global recognized standard for information security management systems. It provides a framework for organizations to handle and protect various data types, including intellectual property, customer, employee, and financial information.

The regulations outlined in  ISO 27001 emphasize the importance of identifying and managing cyber risks, implementing security controls, and monitoring the system 24/7.

Best practices for ISO 27001 implementation

• Start with your ISO 27001 implementation checklist.

• Conduct a risk assessment to identify your system vulnerabilities.

• Implement security controls and monitor the system.

With Nordlayer’s solutions, you can ensure your data is encrypted and only known devices access your network and prevent unauthorized access with network segmentation or a Zero-Trust access model.

PCI-DSS

What is it?

PCI-DSS, or Payment Card Industry Data Security Standard, is a set of rules designed to protect credit card transactions in the payment industry. It focuses on managing risks associated with payment information and requires organizations to implement security controls, such as encryption and access controls, to safeguard cardholder data throughout the transaction process.

Best practices for PCI-DSS implementation

• Review the PCI-DSS compliance checklist.

• You can then assess your systems and processes to identify vulnerabilities.

• Assess systems and princesses for vulnerabilities.

• Deploy security measures aligned with PCI-DSS requirements, such as a firewall, traffic encryption, and restricting access to your confidential data

SOC 2 report

What is it?

SOC 2 is a voluntary compliance standard developed by the American Institute of Certified Public Accountants (AICPA) to ensure businesses handle sensitive customer data securely. It provides insights into how a company and its partners manage and secure access to confidential data.

There are two types of SOC 2 reports:

• SOC 2 Type I describes the organization’s systems and ensures they follow relevant trust principles.

• SOC 2 Type II describes the operational efficiency of the system.

Best practices for SOC 2 report

To ensure a successful SOC 2 report and that your valuable customer data and privacy are well-protected, you must implement robust security measures like monitoring, access controls, and encryption.

NordLayer has gone through an independent SOC 2 Type 1 audit. What does it mean for your business? It means that all NordLayer’s tools provide adequate security controls to manage customer data and protect privacy.

How NordLayer helped a full-stack insurtech secure data

Rey. id, first Indonesia’s insurtech start-up is an insurance platform offering various healthcare services, including online and offline doctor consultations. As Rey deals with sensitive and regulated data, it was crucial for them to put appropriate security controls in place.

Rey needed a trusted system that meets the Indonesian regulatory requirements and safely store all data for 25 years. Using NordLayer, Rey seamlessly integrated their systems, enabling secure connections to their app and cloud servers. The hardware-free Business VPN service is now mandatory for Rey’s employees based on their job roles and access permissions, and it requires minimal resources for setup and maintenance. Rey also implemented Standard Operating Procedures (SOPs), including Single Sign-On (SSO) for user authentication.

Rey’s team can easily manage new employees, allowlist IP addresses for new servers, and assign specific task groups based on their needs, like code uploading and system deployment. This simplifies the VPN configuration process within the infrastructure, removing its complexity.

With NordLayer, Rey combined security measures with compliance standards, effectively reducing data breach risks. These strong security solutions helped Rey achieve ISO 27001, a huge milestone for a young company like theirs, ensuring the secure handling of confidential data.

Actionable tips and best practices for compliance

Maintaining regulatory compliance in today’s hybrid and remote work environment has become increasingly challenging. Here are some practical tips to help your organization secure access to your sensitive data and ensure compliance.

• Encrypt data transfers from untrusted networks. Encryption helps you safeguard data confidentiality, protecting it from unauthorized access. This is particularly crucial for healthcare providers, partners, and subcontractors dealing with Protected Health Information.

• Monitor and audit your network activity 24/7. With efficient monitoring, logging, and auditing solutions, you can track secured connections, detect anomalies and prevent security incidents.

• Allow only trusted devices to connect to your internal network. You can ensure the network’s security and health by monitoring and accessing devices based on predefined security rules. Receive notifications about non-compliant devices to take appropriate measures.

• Implement access segmentation to protect resources and limit cybercriminals’  movement within your network in the event of a breach. Network segmentation enables you to allocate resource access using private gateways, enhancing overall network security.

• Adopt a Zero-Trust solution to strengthen your network safety. This model ensures that only authorized users can access protected data by implementing strict security measures like 2FA, SSO, and biometrics. With this trust-noone-verify-all approach, you can enhance the safety of your network and safeguard your data.

How can NordLayer help your organization achieve compliance?

Modern organizations face now complex digital security rules and regulations. Poor security compliance exposes businesses to risks, including regulatory fines, reputational damage from data breaches, and financial losses.

As you embark on your way to compliance, you must familiarize yourself with the specific regulations relevant to your industry. For example, healthcare organizations should comply with HIPPA, while companies operating within the European Union must adhere to the GDPR.

NordLayer provides advanced and reliable tools that help organizations merge security and compliance effectively. By integrating our solutions into your compliance strategies, you can secure access to sensitive data. Whatever sector your organization operates in, NordLayer can assist in achieving compliance.

To begin your compliance journey, get in touch with our team. Whether you need ISO 20007 certification, HIPAA compliance, or adherence to the GDPR, we are here to support you on every step of the way.

Modern businesses heavily rely on internet access for communication and collaboration. This also makes it the #1 channel for cybercriminals trying to access sensitive data. This modern threat landscape is a critical cybersecurity challenge that businesses must be aware of and be prepared to defend against.

Therefore, in this blog post, we’ll discuss the importance of internet access security for businesses operating in all work models, including remote, office, and hybrid. With the number of cyberattacks ramping up, it’s crucial not to hope for the best and believe it will never happen to your company.

What internet access security challenges affect businesses?

Businesses hold and manage large amounts of sensitive data, including customer information, financial data, and trade secrets. If this information isn’t properly secured, unauthorized users can obtain access to it, causing a data breach.

Remote work challenges

During the COVID-19 pandemic, remote work has been the norm for many companies. Even after the quarantines had ended, many businesses kept working from home. While remote work brings benefits and flexibility, it also comes with challenges.

Use of personal devices

The practice of employees bringing their own device for work-related tasks, known as (BYOD), became widespread during the pandemic. Employees hired remotely usually had no personal contact with IT administration, so they worked with their home devices.

The risk lies in the fact that they’re unmanaged and may lack the same level of security as company-issued devices. These circumstances leave them vulnerable to all kinds of attacks, with limited capabilities for IT administrators to stop them.

Unsecure networks

Home networks may not have the same level of security as properly managed corporate networks. Employees using outdated or vulnerable network devices are more susceptible to exploits that hackers could use to gain entry into company systems.

Remote employees are solely responsible for securing their own devices, but they may not always have the necessary knowledge to do it effectively. This also allows hackers to initiate phishing messages or cause disruptions.

Access control

When allowing employees to work remotely, a security policy should clearly state how and who can access sensitive data. Without such a policy, organizations may fall into the trap of being unable to verify who is accessing their networks or data. This is a sure route to costly data breaches and reputational damage.

In addition, compliance regulations like GDPR and HIPAA require organizations to have robust access control policies to protect sensitive data. Failure to do so may result in legal liabilities and hurt business financially.

Office work challenges

While working in the office seems more secure than remote work in most managers’ eyes, it’s not immune to various security threats. In fact, several cybersecurity risks may be more prevalent for employees working in an office than in other models.

Social engineering

Social engineering attacks target the human aspect of security, making them harder to detect and prevent. Very little stands in a dedicated hacker’s way if they plan out a fake identity, impersonating legitimate employees, and using other psychological tactics. For example, tailgating is based on following a genuine employee through the door without authorization.

Employees in an office environment have physical access to sensitive documents and data. This can mean that once a hacker is inside the building, all the sensitive data can be compromised (or stolen).

Insider threats

While network segmentation helps to introduce boundaries that prevent users’ lateral movement in the network, all these boundaries are much more fluid in an office setting. Employees may write their passwords on sticky notes and leave them on their desks, which is something that malicious colleagues could exploit.

In-office identity thefts and malicious leaks may be harder to stop or detect. Additionally, deliberate leaks or theft of physical documents and devices by someone working on-premises are scenarios that an IT manager should prepare for.

Hybrid work challenges

Hybrid work, which combines remote and office models, adds up challenges from both approaches. Employees must be provided with secure methods to connect to hosted resources when working remotely. Meanwhile, when they’re back in the office, they need to be vigilant about risks they could be lurking in shared spaces. This makes the hybrid model the most difficult to secure.

Double the maintenance

Hybrid work puts a huge strain on IT administrators. They must simultaneously support and manage two fronts: office employees must be provided with secure network access when working on-premises and remote employees must be provided with secure routes into their network.

Both modes must be compatible, operate without interruptions, and be secure. It’s an intricate system with many moving parts, so naturally, it’s much harder to supervise.

Increased physical security risks

Hybrid employees carry work devices back and forth between the office and their homes, increasing the risk of theft or loss. A lost device may not be a serious risk if properly secured with strong passwords or encryption. However, if not, it could easily lead to a data breach.

Additionally, working in public areas or during transit increases the potential for shoulder surfing attacks, when an attacker can physically view the device screen. As the attacker needs to be physically close to their victim, this has become quite prevalent with the growing popularity of hybrid work models.

Why is internet access security important for businesses?

Modern-day enterprises heavily rely on the internet to enable all kinds of their operations. As a result, its secure access is important, regardless of the connection method an organization uses. Achieving secure internet access also enables businesses:

• Protecting sensitive information. Unsecured communication channels may lead to the loss of sensitive information, which could be disastrous for a company’s reputation and cause legal complications.

• Mitigating cyber threats. Mostly, the internet is a publicly used platform, and it exposes businesses to various risks like malware, phishing, and hacking attempts.

• Complying with regulations. Many industries are subject to regulations requiring them to maintain strict security measures. Failure to comply can result in heavy fines or legal repercussions.

• Ensuring business operations continuity. Cyberattacks have the potential to disrupt day-to-day business operations, leading to downtime and lost revenue.

By tackling internet access security challenges, businesses can avoid risks and establish a proper foundation for uninterrupted growth and operational continuity.

How do businesses secure their internet access against various threats?

Securing work environments against threats can vary depending on the business size and risks faced by businesses. Some companies have the manpower and resources to build their own in-house solutions. Others take the simplest approach and turn to a third-party provider adopting their already established tools. Here are two real-life examples.

Whatagraph

A digital marketing reporting platform, Whatagraph transitioned to a hybrid work model when faced with the challenge of local talent shortage. This also meant that they needed to figure out how to allow their remote hires to connect securely to their infrastructure. A comprehensive cybersecurity solution establishing a private gateway to the company’s data and applications was an obvious choice. As Whatagraph is a rapidly scaling company, the solution must also integrate admin features and provide uncomplicated scaling.

To address their needs, Whatagraph turned to NordLayer, using it mainly as a business VPN back when it was still called NordVPN Teams. They leveraged NordLayer’s Virtual Private Gateways with dedicated IP addresses to securely connect to their company network, sealing the sensitive data in an encrypted tunnel.

What also helped was that NordLayer seamlessly integrated with their existing solutions, eliminating the need for additional technical integration. This provided Whatagraph with optimal internet access security within minutes.

Atlantis Games

A mobile game development company, Atlantis Games, found themselves trapped in a corner when manual user handling ways weren’t keeping up with their growth. Initially, their setup was manually allowlisting individual users’ IP addresses, which worked for a small team. However, once a business expanded and developers and customer support specialists needed multiple IP addresses, the manual approach proved to be too much of a task.

NordLayer came to the rescue by providing a smoothly running client with uninterrupted connections. By using Virtual Private Gateways with IP allowlisting for organization members, Atlantis Gamest eliminated the need for manual maintenance or in-house hardware purchases. Plus, they were able to segment teams by projects and allowlist their IP addresses accordingly. The setup mitigated the data breach risk and introduced more granular data access controls.

As the tool seamlessly integrated with their existing company cloud systems, the transition was smooth and freed them from tedious manual management. This resulted in a more efficient and secure connectivity model with additional NordLayer features.

Actionable tips and best practices

Businesses must handle the data that they hold responsibly, not only to fulfill their promise to their clients, but also to meet requirements from the government bodies. By following best industry tips and practices, organizations can help prevent cybersecurity incidents and mitigate the risk of lawsuits and financial penalties.

• Using strong and unique passwords. Online account protection largely rests on the strength of your users’ passwords. Reusing passwords makes it easier for hackers to gain entry into multiple accounts with the same set of credentials. Therefore, requiring a strong and unique password is a simple yet effective way to secure against the simplest threats.

• Regularly updating software. Periodically updating software is crucial to maintaining a secure system and protecting against cyber threats. As vulnerabilities are discovered daily, using outdated software makes it easier for hackers to exploit known flaws. The only way to avoid those exploits is to patch vulnerabilities to reduce your system’s susceptibility to attacks.

• Using a VPN. When a user connects to a VPN, its internet traffic is encrypted, protecting all exchanged information under a seal. VPNs also mask your real IP address, making it more difficult for websites and services to track your online activity or location. This alone can make remote working risks less severe.

• Limiting user access to sensitive information. Enforcing a need-to-know basis for accessing all data. By restricting access to only those who require it, you can reduce the risk of unauthorized access or exposure to confidential information. This can minimize the likelihood of insider threats and ensure accountability for information access.

• Training employees to recognize cyber threats. Cybercriminals often target employees through phishing emails to gain access to sensitive information. This makes employees a key component of the organization’s defense system. For this reason, they should be equipped to recognize and stop hacking attempts, alongside our technical systems.

How can NordLayer help?

Internet access security is a priority for most companies, no matter what industry they work in. Nowadays, it poses unique security challenges businesses need to address due to various work models like remote, office, and hybrid.

NordLayer can assist enterprises in protecting their connections over the public internet. This is achieved by encrypting the connection between the user’s device and the middleman server using advanced ciphers. It ensures that all data exchanged is kept secure and cannot be read by outsiders.

With cutting-edge security technologies, NordLayer can block access to malicious websites and control entry to specific content categories. Using Public Shared Gateways, NordLayer expands browsing capabilities, allowing global business exploration and guaranteeing the confidentiality of users’ and resources’ true location.

Businesses can enhance their internet access security by implementing best industry practices and regularly training employees on security threats. This is a sure way to protect sensitive information from data breaches, no matter what work model your organization is.

Contact our sales team and discover how to achieve greater internet access security.

In today’s fast-paced business environment, information technology shapes the way companies operate, compete, and grow. The pace of technological advancements adoption can play a deciding role in a company’s success or failure. However, how this can be achieved within an organization may not always be clear.

For this reason, we’ve invited co-founder and CPO at Kubernetes automation, optimization, security, and cost management platform CAST AI, Laurent Gil. Additionally, our Head of Platform Engineering at NordLayer, Carlos Salas, for his take on improving the current organization’s IT infrastructure.

Let’s take a deep dive into your current IT infrastructure assessment, automation areas identification, the right automation tools selection, its implementation, and the best practices.

Assessing your current IT infrastructure

Laurent Gil shared his valuable insights on how businesses can optimize their IT infrastructure to drive efficiency and productivity. According to him, one crucial step in this process is conducting a comprehensive assessment of your current infrastructure.

Here’s how your current IT infrastructure could be evaluated in 8 steps:

1. Define assessment objectives. Assessment objectives can be diverse, and they should focus on particular areas that could use improvements. For some businesses, it may be ironing out security vulnerabilities, while for others, it may be performance improvements. 

2. Gather information. Regardless of assessment objectives, the next step will always be data collection. This will form a solid foundation for the evaluation process providing useful insights in later steps.

3. Evaluate your used hardware and software. All used servers, storage devices, routers, switches, as well as operating systems, databases, applications, and security software should be reviewed. Check for potential bottlenecks and clunky setups that are slowing down your operations. 

4. Perform network checks. Analyze your network topology, bandwidth, and latency. Evaluate your network security measures, such as firewalls, intrusion detection, and prevention systems.

5. Look into data backups and disaster recovery. Verify that your data backup and recovery plans are up-to-date, reliable, and effective. Test your disaster recovery procedures to ensure that they meet your recovery time objectives.

6. Analyze your security setup. Assess your security policies and procedures, including access controls, authentication, and authorization. Test your security controls to identify weaknesses or gaps.

7. Consider the IT budget. Evaluate your IT budget and spending to identify areas for improvement or cost savings. Identify potential areas where technology investments can drive business value and growth.

8. Document your findings. Document your findings and recommendations in a detailed report. This will serve as a reference document providing actionable recommendations for improving your IT infrastructure.

Identifying areas for automation

Findings from the IT infrastructure assessment should help you identify areas that could benefit the most from automation. As different companies have different IT struggles, going through this process should be a highly individualized approach. That said, here are some common areas that could be easily automated.

Data entry and data processing. Routine maintenance tasks like data entry, migration, and validation can be easily automated using macros, scripts, and other robotic processes.

Network and system administration. Tasks like server monitoring, backup, and patch management can be time-consuming and repetitive. Automations enable the creation of templates to perform the tasks identically, leaving less room for human error. In addition, this frees the staff from manual processes allowing them to focus on strategic activities.

Software deployment. Every software deployment instance involves a lot of repetitive tasks to ensure that it’s deployed correctly and without errors. Automating them can help reduce the time and effort required for deployment and improve the reliability of the process.

Customer support. Simple customer support tasks like answering frequently asked questions, providing account information, and processing routine requests can be solved without human involvement. Leveraging chatbots and virtual assistants can combine convenience and efficiency for businesses and their customers.

Choosing automation tools

When it comes to selecting automation tools, Laurent Gil highlights the significance of putting business needs at the forefront.

Here’s a brief overview of the approach that businesses can take when selecting automation tools:

Research what’s available on the market 

Clear business objectives and defined areas for improvement will allow you to fill in the gaps with automation tools. This can involve various routes like reviewing industry publications or consulting with vendors directly.

Evaluate select tool features 

Once a list of potential features has been compiled, it’s important to evaluate its features. Depending on needed functionalities, this can involve scalability, customizability or other ease of use adjustments.

Consider integrations

This paves the way for seamless automation implementation without hiccups and ensures optimal performance down the line.

Test and trial 

Before making a final decision, businesses should take chosen automation tools for a test drive. Various methods like setting up a proof of concept or pilot project to evaluate the effectiveness of the tool in real-world scenarios will help to realistically evaluate its usefulness.

Implementing automation

Implementing business IT automation can be a complex task that requires careful planning and execution. Here are some general steps that you can follow to implement business IT automation.

1. Design the automation process. Start by creating a plan for automation, including a timeline and a list of tasks to be automated. It also helps to break the process into smaller tasks and identify the rules and conditions that must be followed.

2. Deploy the automation. The exact route of automation deployment will depend on whether it’s an in-house built tool or a third-party provider was chosen. Still, it’s best to test in a production environment initially and, after testing, move on to full-scale implementation.

3. Train employees. Expect that your workforce will only know how to use it after a while. Expect that there will be a transitionary period during which various training will help staff to familiarize themselves with the tool better.

4. Evaluate the results. After the automation has been implemented and employees get used to it, it’s worth checking its impact on productivity, efficiency, and accuracy. This information can be highly useful when identifying shortcomings in your current setup as well as planning and identifying new areas for automation.

Best practices for automating IT

To maximize your chances that your automation process goes smoothly, it can be good advice to follow the best industry practices. These include:

Focusing on standardization 

Standardization is critical when it comes to automating IT processes. It also makes it easier to automate routine tasks, reduces the chances of errors, and helps ensure consistency across your IT infrastructure.

Make use of automation platforms

According to Laurent Gil, automation platforms have the power to enhance business efficiency and streamline operations.

Gil’s words highlight the significant shift brought about by automation platforms in the business landscape. With these powerful tools at their disposal, organizations of all sizes can leverage automation to optimize their workflows, freeing up valuable time and resources for more strategic endeavors.

Adopt a DevOps approach 

Adopting a DevOps approach to automation can help streamline the IT development and deployment processes. Integrating development and operations teams allows the entire software development lifecycle to be automated. This can help you deliver software faster and with fewer errors.

Involving stakeholders 

Stakeholders are the personnel that the automation process will directly impact. Therefore, their input can help to identify potential pain points in advance. This can lead to more effective automation that addresses real problems and is designed to meet the organization’s specific needs.

Bottom line

Optimizing your business IT requires a systematic approach based on evaluating your current setup. The thorough analysis of the current businesses’ IT environment allows them to identify potential automation areas.

The process is finalized by choosing appropriate automation tools and going through the implementation process. It’s important to consider specific needs, evaluate tool features, integration, and test and try the solutions before fully committing. Automation adoption has the potential to make businesses even better adjusted to the current digital landscape.

When compared to other industries, healthcare has remained quite reluctant to digitalization. However, as technology evolves, cloud computing has become vital in streamlining operations and enhancing data accessibility. On the flip side, this also introduces various security concerns that demand attention.

This comprehensive guide delves into the importance of robust cloud security in healthcare. It provides valuable insights to safeguard sensitive patient information, maintain regulatory compliance, and fortify the industry against evolving threats. Join us as we explore all the essential information regarding cloud security in healthcare.

The growing importance of cloud security in healthcare

After the COVID-19 pandemic, the healthcare industry experienced a heightened demand for improved and more modern services. Distributed care and telemedicine pushed healthcare organizations to move to cloud computing, meaning data security had to be considered. The problem is that the same techniques that were valid for data security on-premises don’t translate well into externally kept data.

Some of the challenges facing the healthcare industry transitioning to cloud infrastructure included:

• Resource and budget strains. Most healthcare providers work with limited IT budgets, so major infrastructure overhauls are long and tedious.

• Continuity of operations. Data migrations to the cloud shouldn’t disrupt everyday operations, which isn’t something that all healthcare providers can allow.

• Regulatory compliance. Patient data is highly confidential information so various local regulations sanction its security.

Generally, healthcare organizations want to move to cloud computing to make their services more effective while avoiding unnecessary or unmanaged risks. As patient data is one of the most sensitive data types, ensuring robust security measures is a top priority.

Types of healthcare cloud security solutions

Healthcare providers (and, by extension, most industries) rely on three main types of cloud computing services. This includes Infrastructure-as-a-Service (IaaS), Platform-as-a-Service (PaaS), and Software-as-a-Service (SaaS).

Infrastructure-as-a-Service (IaaS)

Benefits of IaaS in healthcare

Aside from the fact that cloud computing makes it easier to deploy workloads, IaaS has a range of benefits that could be useful for healthcare companies.

• Scalability and flexibility. By leveraging IaaS, users can rapidly deploy and configure virtual machines, storage, and network components. This allows healthcare organizations to scale their infrastructure up or down based on their actual needs.

• Disaster recovery. IaaS enables organizations to back up and recover their critical data and remote machines. As critical data and applications are kept in cloud storage, this ensures their availability and integrity.

• Cost efficiency. IaaS service providers use a flexible pay-as-you-go pricing model allowing users to pay only for the resources they use. This enables cost optimization, eliminating the need for upfront hardware and infrastructure maintenance investments.

Security challenges and how to address them

IaaS security is shared between the service provider and the user. While the service provider is responsible for managing underlying networking, storage, servers, and virtualization, the user is responsible for managing the security of everything running on top of the infrastructure. This involves operating systems, middleware, data, and applications. This setup is not without cybersecurity challenges.

• Data protection. Sensitive patient data must be protected using encryption and access controls. As the data is physically located in third-party data centers, unauthorized access or breaches are the primary concern.

• Compliance. Patient data falls under government-protected information, so regulatory compliance applies to it. Organizations must ensure that their IaaS providers adhere to sensitive patient data from unauthorized access or breaches.

For these reasons, IaaS provider selection is crucial to avoid collateral damage. Implementing multi-factor authentication, regular vulnerability assessments, and proactive monitoring can enhance security.

Platform-as-a-Service (PaaS)

Benefits of PaaS in healthcare

With PaaS, healthcare providers get a platform for developing, testing and deploying applications in the cloud. Here are its main benefits:

• Rapid application development. PaaS simplifies the application development process, allowing one to skip multiple setup steps and go directly to the deployment. This can accelerate innovation and provide new solutions quickly.

• Scalability and performance. As with all cloud-based tools, they can automatically scale based on demand, ensuring high availability and optimal performance.

• Collaboration and integration. PaaS is compatible with existing systems, meaning currently used tools can be integrated into a unified system.

Security challenges and how to address them

When adopting PaaS, organizations need to be wary of its security challenges. Here are some examples:

• Application security. PaaS environments involve the deployment and running of custom applications. Therefore, businesses should conduct regular code reviews, implement secure coding practices, and perform vulnerability assessments.

• Secure configuration. Businesses need to make sure that used PaaS platforms are properly configured. This includes firewalls, network access controls, and encryption protocols.

• Incident response and monitoring. PaaS environments require ongoing monitoring and timely incident response capabilities. By establishing robust logging and monitoring systems and employing detection and prevention mechanisms, we can have a ready system in case of an intrusion.

Software-as-a-Service (SaaS)

Many healthcare-related applications are delivered via SaaS, including healthcare picture archiving and communication systems (PACs), electronic health records (EHR), telehealth services, and more.

Benefits of SaaS in healthcare

With SaaS, healthcare organizations are provided with the service directly without the need to handle setup and maintenance. Here are its main benefits:

• Accessibility and mobility. SaaS applications can be accessed from everywhere, enabling healthcare professionals to securely access patient information on various devices, enhancing workflow efficiency.

• Automatic updates. The responsibility to handle software updates and patches fall on the service provider, meaning that healthcare applications are always up to date and protected against emerging security threats.

• Fast deployment. SaaS applications are provided instantly and with minimal setup compared to on-premises software. Software updates and maintenance are handled by the SaaS provider, ensuring smooth operation.

Security challenges and how to address them

The problem is that SaaS brings healthcare organizations not only benefits. It does have some security challenges that need to be addressed by IT personnel.

• Access control. As SaaS applications are externally hosted, managing user access and authentication is critical. This is the only way to prevent unauthorized intrusions.

• Third-party integrations. Some SaaS applications need to be integrated with third-party services or APIs. These integrations can introduce security risks if not properly managed or if they have exploitable vulnerabilities.

• Multi-tenancy risks. The same SaaS application can serve multiple consumers, sharing the same underlying structure and resources. This is why logical separation and isolation between tenants are crucial to prevent data leakage or unauthorized access to customer data.

Compliance and regulatory landscape in cloud security

Regulatory landscape and compliance are critical considerations for organizations across various industries. Most countries have recently implemented various data protection and cybersecurity laws. The government regulates the privacy protection of medical data, and breaching the law ensues grave consequences.

Here are some prominent regulations, guidelines that could impact cloud security, and strategies for ensuring compliance.

HIPAA and HITECH

The Health Insurance Portability and Accountability Act (HIPAA) and the Health Information Technology for Economic and Clinical Health (HITECH) Act are crucial regulations in the healthcare industry. They both perform different functions:

HIPAA — sets standards for protecting sensitive patient health information

HITECH — promotes the adoption of electronic health records

Compliance with both is essential when leveraging cloud computing services in the healthcare sector. Organizations need to take care of security measures like data encryption, access controls, and regular audits to safeguard patient data and meet the requirements outlined in these regulations.

GDPR

The General Data Protection Regulation (GDPR) is a comprehensive data protection framework that affects organizations operating in European Union countries or handling EU citizen data. It emphasizes individual privacy rights, consent management, and data breach notification.

Cloud service providers and organizations utilizing cloud computing services must comply with GDPR by implementing appropriate security measures, conducting data protection impact assessments, and ensuring cross-border data transfers adhere to GDPR guidelines. Encryption, pseudonymization, and privacy-by-design principles are critical for achieving compliance with GDPR in cloud computing.

Other regional regulations and guidelines

In addition to HIPAA, HITECH, and GDPR, other regional regulations and guidelines impact cloud security in specific industries or geographic locations. Examples include the Payment Card Industry Data Security Standard (PCI DSS) for the payment card industry and the Federal Risk and Authorization Management Program (FedRAMP) for U.S. government agencies.

Compliance with these regulations requires organizations to align their cloud security practices with specific requirements. Depending on the regulation and area, this may include data encryption, access controls, vulnerability management, and incident response protocols. Staying informed about relevant regional regulations is crucial to ensure compliance and avoid potential penalties or reputational damage.

Navigating third-party challenges and shared responsibility

As it was mentioned previously, cloud services adoption would involve collaboration with third parties. Here are some key considerations of security responsibilities between the cloud service provider and the customer:

Vendor risk assessment

A thorough vendor risk assessment helps to make sure that a cloud provider will be a matching fit for a healthcare organization’s needs. The cloud service provider’s market is saturated, but not everyone has compliant security controls, certifications, incident response capabilities, and data protection practices. The same strict requirements for healthcare organizations also apply to their third-party partners.

By assessing vendor risks, organizations can make informed decisions and select providers aligning with their security requirements and compliance obligations. Provider’s failure to secure the underlying infrastructure can open the gap in the security set up by the healthcare provider.

Understanding the shared responsibility model

The shared responsibility model defines the division of security responsibilities between cloud service providers and customers. While providers are responsible for securing the underlying infrastructure, customers are accountable for securing their data and applications within the cloud.

Organizations must understand and fulfill their share of responsibilities, which may involve tasks such as configuring access controls, encrypting sensitive data, applying patches and updates, and regularly monitoring for security incidents.

Key cloud security strategies and solutions for healthcare

While cloud computing is appealing to make operations more modern and effective, the downside is the potential cybersecurity risks. Safeguarding sensitive patient data and navigating regulatory compliance requirements are the primary concerns for healthcare providers. There are three main cloud security strategies and solutions to consider.

Advanced threat prevention

Advanced threat prevention is one of the key cloud security strategies for healthcare. It involves deploying sophisticated security measures to identify and mitigate potential threats before they cause any damage. Relying on technologies like machine learning algorithms, behavior analysis, Deep Packet Inspection, and real-time monitoring, organizations aim to detect and respond to suspicious activities.

As a proactive approach to cybersecurity, advanced threat monitoring allows healthcare organizations to identify and effectively neutralize threats. This helps businesses to reduce the risk of data breaches and unauthorized access to patient information.

Cloud-based security operations and monitoring

Monitoring is critical in ensuring the integrity and confidentiality of healthcare data stored in the cloud. By providing continuous oversight and proactive detection of potential security breaches or unauthorized access attempts, monitoring enables organizations to secure against security incidents promptly.

In addition, by leveraging cloud-based security tools, healthcare organizations can centralize security operations, streamline incident response, and gain insights into potential vulnerabilities. The systems can be automated, helping organizations detect and mitigate security breaches on time and enhancing overall security posture without human involvement.

Secure remote work

During the COVID-19 pandemic, the adoption of remote work in the healthcare sector accelerated. Secure remote access became critical as healthcare professionals needed to access patient data and collaborate remotely.

Cloud security solutions enable secure sensitive data storage, ensuring healthcare providers can work efficiently while adhering to strict security protocols. Implementing secure virtual private networks (VPNs), multi-factor authentication, and encryption technologies safeguard data transmission and prevent unauthorized access, mitigating risks associated with remote work.

Cloud security in action: enabling new healthcare capabilities

Cloud security not only performs the function of safeguarding patient data, it also empowers healthcare organizations to embrace new capabilities and innovate. Here are some routes in which cloud security can facilitate advancements.

Redundancies to prevent ransomware attacks

Ransomware attacks use malware that encrypts data stored in the device’s hard drive rendering it inaccessible until a payment is made to the attacker. This is extremely disruptive to organizations relying on on-premises infrastructure as this can completely shut down all operations and compromise patient data.

The only solution to this issue is data replication in multiple dispersed locations. That way, there’s no centralized storage that could be tampered with. In an accident, data can be restored from unaffected backups, minimizing downtime and ensuring continuity of care. Cloud servers enable effective mirroring solutions allowing distributed backups.

Delegation of security responsibilities to third-party firms

Cloud security can catalyze operations outsourcing, allowing better work distribution in your organization. Managing and maintaining robust cloud security infrastructure requires specialized expertise. That’s one of the key reasons why many healthcare organizations delegate their security responsibilities to reputable third-party vendors.

Cloud computing partners already possess the knowledge and resources to implement industry best practices, conduct regular security assessments, and respond to emerging threats promptly. This allows organizations to enhance the cloud security posture and focus on quality patient care.

Automation to free up healthcare resources

Cloud security can be improved by adopting various innovations to improve the setup. By automating vulnerability scanning, log analysis, and security policy enforcement, healthcare providers can free up their workforce from manual and time-consuming tasks.

Automation improves efficiency, reduces the risk of human error, and ensures consistent application of security controls. As IT professionals aren’t burdened with recurring manual tasks. This leaves them more time to focus on advanced security measures and stay updated with evolving threats.

Expert insights and resources for healthcare cloud security

Several organizations provide expert insights and resources for healthcare cloud security. Cloud Security Alliance (CSA), the European Union Agency for Cybersecurity (ENISA), and the National Institute of Standards and Technology (NIST) are the main ones providing various recommendations for cloud security in healthcare companies.

CSA

CSA has established requirements for healthcare organizations to ensure secure cloud computing practices. These requirements mainly focus on several key areas:

• Implement strong access controls and authentication mechanisms to protect sensitive data.

• Regularly monitor and audit cloud services for security vulnerabilities and incidents.

• Encrypt data both in transit and at rest to maintain confidentiality.

• Conduct regular risk assessments and threat modelling to identify and mitigate potential risks.

• Establish incident response and recovery plans to handle security breaches effectively.

• Stay updated with the latest security best practices and standards.

By adhering to these CSA requirements, healthcare organizations can enhance the security of their cloud computing environments and protect patient information from unauthorized access or data breaches.

ENISA

ENISA lays out comprehensive requirements for healthcare organizations in the European Union to enhance their cybersecurity measures. These requirements encompass multiple aspects of cloud security:

• Develop and enforce robust security policies and procedures for cloud adoption.

• Perform thorough risk assessments to identify and address potential security threats.

• Ensure the secure configuration and hardening of cloud computing environments.

• Employ strong access controls and authentication mechanisms to protect sensitive data.

• Regularly monitor and log cloud computing activities to detect any suspicious behaviour.

• Establish incident response plans and conduct regular security audits.

Adherence to these ENISA requirements is vital to safeguarding patient data, protecting critical healthcare systems, and maintaining the resilience and trustworthiness of healthcare services within the EU.

NIST

NIST provides guidelines and requirements and guidelines for healthcare organizations to ensure the security and privacy of patient information. These requirements include:

• Follow the NIST Cybersecurity Framework for risk management and cybersecurity best practices.

• Employ strong identity and access management controls to protect data and resources.

• Use encryption to safeguard data both in transit and at rest.

• Regularly update and patch cloud infrastructure and applications to address security vulnerabilities.

• Implement robust network security controls, such as firewalls and intrusion detection/prevention systems.

• Conduct continuous monitoring and log analysis to promptly detect and respond to security incidents.

Healthcare companies must review and adapt these recommendations to their organizational needs and regulatory requirements.

How can NordLayer help?

Securing cloud infrastructure can be challenging for healthcare companies. Still, the benefits outweigh the risks, so it’s worth considering digitally transforming an organization and improving its services. It’s not a bad idea to turn to third-party partners that could help to take a leap.

NordLayer streamlines network access controls to ensure only authorized users can access confidential data. Access to cloud resources happens using encrypted tunnels using AES 256-bit and ChaCha20 cyphers. The service is also compatible with major cloud platforms like Azure and AWS, allowing seamless integration with other solutions and services.

With correct control mechanisms, NordLayer is a valuable ally to follow through with the best cloud environment security practices. With an extensive set of centrally implemented features and monitoring controls that are all managed via the Control Panel, NordLayer allows the implementation of security policies reducing various risks.

Contact NordLayer and discuss your security options today to ensure safe access to patient data and protect your cloud infrastructure.

FAQ

How can healthcare organizations ensure compliance in the cloud?

Healthcare organizations can ensure compliance in the cloud by understanding applicable regulations. Familiarizing with regulations like HIPAA and GDPR will allow organizations to identify specific compliance requirements. This will serve as a basis for cloud provider choice and guide what access controls and other cybersecurity functionalities must be implemented to align with requirements.

What are examples of cloud security?

Cloud security is an umbrella term encompassing various technologies to protect data and systems in the cloud. This includes encryption, access controls, firewalls, intrusion detection and prevention systems, security information and event management, and data loss prevention.

How does the shared responsibility model work in healthcare cloud security?

The shared responsibility model defines the division of security responsibilities between the cloud service provider (CSP) and the healthcare organization. While the specifics entirely depend on the cloud service model, the cloud service provider usually takes care of the underlying cloud infrastructure. At the same time, the healthcare organization is responsible for application data security and access control.

What steps can healthcare organizations take to mitigate third-party risks?

To mitigate third-party risks, healthcare organizations must establish clear contractual agreements outlining security expectations, data handling procedures, breach notification requirements, and liability provisions. Then, a good plan is to perform ongoing maintenance with regular risk assessments. This should help organizations minimize risks associated with third parties.

As new data breaches are making the headlines, cybersecurity is becoming one of the most critical elements of a long-term business strategy. To protect their sensitive data and mitigate potential risks, businesses are actively looking for ways to move into the 21st century in terms of their infrastructure. However, as many soon discover, cybersecurity integration within an existing business is rarely a one-click solution.

Even putting all the technical questions aside, cybersecurity raises many questions regarding return on investment. This article will provide a broad overview of how to approach cybersecurity spending. We’ll briefly cover what makes up cybersecurity costs, what factors could affect them, the financial impacts of cyberattacks, potential benefits, and some guidelines on approaching cybersecurity estimates in your company.

Costs of cybersecurity

Cybersecurity spending can mean several things. The exact route will depend on the actual business case and the risks that the company is trying to mitigate. Still, no matter which options your company is considering, this is something where budget constraints will have to become a consideration.

Let’s look at the costs from different cybersecurity ecosystem components: solutions, services, personnel, and training.

Solutions

One of the go-to routes for organizations looking to shield themselves against cyberattacks is purchasing cybersecurity hardware or software solutions. This allows companies to flexibly integrate them into the infrastructure, strengthening the areas needing attention.

As such, businesses have numerous options available. Cybersecurity hardware and software provide easy access to firewalls, antivirus, access control mechanisms, intrusion detection and prevention systems. When used collectively, these technologies work together to halt cyberattacks or mitigate their impact if they do occur.

While it’s also true that their costs depend on various factors (which we will address later on), let’s look at the average industry costs associated with various cybersecurity solutions. Please note that the distinction between solutions and services isn’t as set in stone as it used to be due to modern service delivery models (like SaaS) and the popularity of cloud computing.

Firewalls

If an organization relies on a network, a firewall is a must as it monitors and controls network traffic. Acting as a barrier between the internet and/or other untrusted networks and your private network, it’s the first defense against malicious connections based on predefined rules.

The tricky part for the comparison is that they can be implemented at different levels of the network stack, i.e., from the network layer (filtering packets) to the application layer (proxy servers). Finally, they can be hardware or software-based, or a combination of both, affecting the final price tag.

Therefore, an average firewall configuration can range between $450 and $2,500 (as a one-off investment not factoring in its maintenance which costs extra). That doesn’t take into account setup or maintenance costs, so the final cost can be higher.

Antivirus software

Antiviruses are still staples to protect computer systems from malware, viruses, and other security threats. As an essential component of comprehensive cybersecurity strategy, they can be used as the last line of defense. Usually, in business settings, they’re deployed across an organization’s network to protect all connected devices.

It’s often the case that antiviruses also include additional features like firewalls, intrusion prevention systems, and email filtering to provide further protection against cyber threats. This also makes our comparison more difficult.

Still, if we’re looking for rough estimates, which is what we’re doing here: basic antivirus usually costs between $3 and $5 per user and $5 to $8 per server monthly. While the final price tag will entirely depend on your organization’s size, the estimate could be at least $30 a month if you have around five users.

Spam filters

Business communication primarily still takes place over emails. This is something that hackers are exploiting in phishing attacks. For this reason, having spam filters is essential to identify and block harmful emails before they end up in employees’ inboxes. Spam filters rely on various technologies to analyze the content and metadata of incoming messages to determine whether they are legitimate.

Some email providers offer spam filters already integrated into their suite. Meanwhile, for other cases, it’s required to set up a spam filter on top of it. It’s estimated that the price for this ranges between $3 – $6 per user per month.

Services

What makes cybersecurity services different from cybersecurity solutions is that they’re typically provided by a third-party provider, who may offer the service on a subscription basis. While a cybersecurity service may include various cybersecurity solutions, the two concepts are not interchangeable. Cybersecurity service by definition encompasses ongoing protection against cybersecurity threats.

Frequently this also means that cybersecurity services can help against threats of greater sophistication. This makes them a good pick for organizations looking into securing their digital assets and preventing unauthorized access, theft, and exploitation of sensitive information.

VPN

With plenty of employees working remotely, businesses need a secure way for their employees to access company resources. VPN encryption seals the sensitive data in a secure tunnel, enabling secure exchanges to the company’s network. This additional protection layer also helps mitigate cyber threats by masking the user’s IP address.

Yet, as with most cybersecurity components, there are multiple routes to consider here. A VPN could be set up as a hardware stack with ongoing third-party maintenance fees or a software-only solution. This is something that can skew the price.

While the software-only is cheaper and can be up to $10 per user, the hardware setup can range up to $3,500 per device. That’s a significant gap between them, while both options provide similar functionality. The particular business case will be a deciding factor.

Consulting and testing

Cybersecurity consulting and testing service providers have a high level of expertise in identifying and mitigating security risks. This is something that few companies can manage to achieve out of their own resources. Specialized cybersecurity professionals perform various checks to properly evaluate the used cybersecurity measures’ effectiveness and outline the most critical areas.

Due to the nature of their services, this can be a pretty expensive endeavor. A vulnerability assessment for a network with up to three servers would cost $1,500 to $6,000. It goes without saying that if the scope of investigations needs to be broader, this will only add up to the final price tag.

Endpoint detection and response

Businesses turn to endpoint detection and response (EDR) services because they provide high protection against cyber threats by monitoring and detecting potential security breaches. This allows businesses to detect and respond to cyber threats quickly and before they cause significant damage to the organization’s assets, reputation, and financial standing. EDR solutions typically operate through a combination of software agents and cloud-based systems.

Endpoint detection and response solutions cost around $5 to $10 per month per device. Yet, as with most subscription-based services, there are discounts: with more devices, EDR usually becomes cheaper per single device. Still, EDR solutions come in different depths and feature sets, so the final cost can be higher.

Personnel

Personnel is one of the most important cybersecurity assets at any company’s disposal. These specialists will protect your data from various forms of cyberattacks and ensure the risks are minimal. Whatever cybersecurity solutions or services you’ve purchased, the IT personnel will set up and maintain those tools.

Cybersecurity doesn’t become an integral part of an organization’s DNA just by purchasing some subscriptions. It needs to be cultivated. One way to ensure this is sustainable is to develop security policies and protocols — exactly what cybersecurity personnel will do.

Network administrators

Network administrators are responsible for setting up and maintaining the organization’s network infrastructure. They must ensure the network is secure from unauthorized access and that all transmitted data is protected from interception and other potential threats. The administrators will be configuring and managing firewalls, blocking specific ports, managing user permissions, monitoring the network, and patching system components.

As for their cost, you can look at conflicting data sources: depending on the region, experience, market saturation, and other factors. Still, if we’re looking for a broad view based on data from Payscale, this should be within $63,244 per year.

Compliance officers

Compliance officers are specialists who ensure an organization’s cybersecurity by implementing policies and procedures to align compliance with regulations and industry standards. They identify risks, monitor security measures, and ensure employees follow security protocols. These key people outline how an organization should handle sensitive data, access controls, and incident response.

A compliance officer’s salary is $73,255 a year based on publicly available data. Mind you, compliance is one of the trickiest landscapes to navigate, so these specialists must periodically refresh their knowledge to stay updated with the latest policy changes.

Security analysts

Security analysts identify potential threats to an organization’s network, systems, and data. They’re using various tools and techniques to detect and prevent cyberattacks before they can cause damage. Security analysts identify vulnerabilities in an organization’s systems and infrastructure by conducting risk assessments.

Security analysts are crucial in protecting an organization’s assets and cyber threats. Based on Glassdoor data, their salaries, on average, are around $90,283 a year. Due to the increased frequency and complexity, professional cyber security analysts are in high demand, which can further increase their salaries.

Trainings

The cybersecurity landscape is constantly changing. Therefore employees’ skills and knowledge need to be periodically refreshed. This is where cybersecurity training and certifications ensure that employees know the best practices for protecting this information and can identify potential threats. These trainings can be expensive, and organizations must ensure they are effective.

Courses

Cybersecurity courses can be an invaluable resource in helping to understand the importance of protecting company data from cyberattacks. By teaching employees how to identify potential security threats and how to take preventative measures, companies can reduce the risk of data breaches and protect their sensitive information. Nowadays, there are plenty of resources, ranging from in-person training to online lectures.

For this reason, cybersecurity training costs vary significantly and can range from freely available online resources to $5,000 or more. Mind you that the price is affected by factors like depth and competencies. Courses intended for niche specializations will always cost more than a basic introduction.

Certifications

Cybersecurity certifications provide credibility to professionals working in the field, demonstrating that they have met rigorous standards and have the necessary knowledge and skills to protect against cyber threats. Using certification as a standardized measure allows aligning the team and ensuring that best practices are applied when making organization-level cybersecurity improvements.

There are several popular cybersecurity certifications widely recognized in the industry. For example, the Certified Information Systems Security Professional (CISSP) exam costs around $699. Certified Ethical Hacker (CEH), another important pick for cybersecurity professionals, costs around $1199. Along with GIAC Security Essentials (GSEC) certification and exam, it’s priced around $1699, which makes it one of the more expensive courses.

Factors that affect cybersecurity costs

It’s important to note that the cybersecurity costs provided in the previous section are only rough estimates. The final price will depend on numerous factors, which will be the key differentials from business to business when calculating cybersecurity costs. Let’s look at some of them to see how they factor into the final price tag.

Size

The size of an organization is one of the most important factors which can drastically alter cybersecurity costs. As larger companies have more complex IT infrastructures, more employees to train, and a higher risk of cyber attacks due to their visibility and financial resources — their security naturally costs more. When compared to smaller organizations, the difference might be night and day.

Keep in mind that, in some cases, some cybersecurity tools will need to be adjusted. They cannot operate that well when used in corporate settings, which are within a completely different pricing category. However, numerous reports confirm that small businesses are three times more likely to be targeted by cybercriminals than larger companies. So while the risks remain high, not all companies are as well equipped to tackle the potential risks.

Industry

The industry in which an organization operates and any regulatory requirements it must comply with can impact its cybersecurity costs. Organizations working in highly regulated industries like healthcare and finance will have higher cybersecurity costs because more regulations apply to the data they’re holding.

As a side note, the industry determines an organization’s risk tolerance. Different industries can have very different thresholds for acceptable risk levels. This means that security’s scope will have to be aligned, which will also, in turn, affect cybersecurity costs. In addition, businesses in certain industries seem to fall victim to more cyberattacks than others, which is also a factor.

Financial impact of cyber attacks

While up until this point, you got the impression that cybersecurity is expensive, let’s move on to an overview of the financial impact of cyber attacks. Depending on what business operations are targeted, the attack scope, and the kinds of data leaking to the public, all constitute significant financial losses. Let’s look at revenue losses, legal fees, and reputational damage.

Revenue

Cyberattacks can disrupt normal organizations’ day-to-day operations and compromise sensitive data. This can easily make an organization’s systems and networks inaccessible or unusable. The downtime when the IT team is trying to patch together a solution and get the operations back up and running costs time, which also translates into lost revenue.

The recovery costs can also be factored in as damaged equipment needs to be replaced, and systems need to be restored from the backups. It’s not a coincidence that a quarter of companies that have experienced a cyber attack have lost between $50,000 and $99,999 in revenue. These are steep numbers, and they don’t factor in the costs of getting the operations back up and running.

Legal fees

After data breach remediation and operations restoration, the trouble isn’t over. Especially in cases of a large data breach, companies need to hire legal counsel, forensic experts, and other professionals to help manage the aftermath. So there’s the precedent of estimation and cleaning up.

Additionally, depending on the data breach’s severity, the company may also be held responsible for the damage suffered by affected customers or clients. If there are lawsuits, this can quickly mount legal fees, including settlement costs. For smaller companies, that’s an instant endgame as they often just aren’t equipped to handle such expenses. For instance, it’s estimated that legal costs range from $50,000-$148 million, with a median of $1.6 million and a mean of $13 million.

Reputational damage

A data breach leaves a permanent black mark on a company’s reputation. Companies will need to spend a lot of resources to repair their image and reassure the customers that they have learned from their mistakes and won’t happen again. This long process involves public statements and social media management and should be an aspect of long-term customer trust remediation.

According to various reports, the proportion of the total costs that can be attributed to reputational costs like abnormal customer turnover and loss of goodwill was around $1.57 million. Mind you that this is something that affects companies for a long time, provided that a company even makes a recovery from a data breach.

Benefits of cybersecurity spending

Cybersecurity spending can minimize various risks associated with revenue, reputation, or legal fees. While this is a solid argument advocating for cybersecurity solutions, this is far from the only benefit. Having a functioning infrastructure with a cybersecurity-focused mindset also generates a positive outcome for organizations. Let’s look at some of the indirect benefits of cybersecurity spending.

Better compliance alignment

Many compliance regulations, like General Data Protection Regulation (GDPR) and the Health Insurance Portability and Accountability Act (HIPAA), require organizations to implement specific security measures to protect sensitive data. Therefore, investments in cybersecurity help to achieve two goals simultaneously:

• The risk profile is contained, and the organization is more resistant to cyberattacks.

• The organization ensures that it has all the necessary technologies and policies in place to meet compliance requirements.

Reports confirm that achieving substantial compliance goals require holistic and integrated security solutions, ensuring that every aspect of an organization is covered. For this alone, cybersecurity investments should be at the top of the business manager’s list.

Increased productivity

Cybersecurity matters can often be a catalyst for workplace modernization. While this may not always be a seamless transition, the change often allows the work to be performed more efficiently and securely. A good example of this is the remote and hybrid work trend, which became very popular after the global pandemic.

In fact, securing identities and endpoint devices enables users to do their work quickly and securely from anywhere. Nowadays, there are many ways of working, and cybersecurity can be a good contributor to breaking the cycle of outdated tech and enabling all ways of working.

How to apply cost-benefit analysis for your organization

Our rough estimates demonstrate that data breach costs outweigh cybersecurity expenses. While this is a valid statement, this doesn’t provide clear guidelines on what actionable steps should be taken when considering cybersecurity spending. Businesses have finite resources, and cybersecurity is just one area that needs to be addressed. Thankfully, there are some models that we can use as a basis to evaluate cybersecurity costs and benefits.

Let’s start by looking at one of the most widely used schemes: the National Institute of Standards and Technology (NIST) Cybersecurity Framework. This is a helpful document consisting of standards, guidelines, and best practices to manage cybersecurity risks. It’s especially useful because it’s applicable to companies from all industries.

The problem with it is that while it recognizes that management of cybersecurity risks is always organization-specific, which will also shape how the final cost-benefit evaluation will look, it doesn’t outline how the cost-benefit analysis should be provided. For this reason, some researchers suggest integrating mathematical models Lawrence A. Gordon and Martin P. Loeb developed into the NIST Cybersecurity Framework. The model calculates an optimal investment in cybersecurity based on the cost of an attack, the expected probability, and the effectiveness of the security measures put in place.

The basic premise of the Gordon-Loeb model is that there is a tradeoff between the cost of an attack and the cost of investing in cybersecurity. Organizations want to minimize the total cost, including the cost of an attack and the security investment. The model assumes that the cost of an attack is proportional to the value of the information assets that could be compromised.

The model also considers the probability of an attack occurring, which is a function of the number of potential attackers, the likelihood that they will attempt an attack, and the effectiveness of the security measures. The effectiveness of security measures is assumed to be proportional to the level of investment in cybersecurity.

To calculate the optimal investment in cybersecurity, a balance needs to be found between the level of investment and the expected total cost. This relies on the relation between the expected cost of an attack and the cost of the security investment. This leaves us with a four-step approach:

1. The value of protected information should be estimated as it represents the potential loss (L)

2. The probability of the information being breached should be estimated (v)

3. These first two values should be combined to derive the expected loss (vL)

4. Cybersecurity investments should be allocated to the information based on the productivity and cost of the investments, so an optimal investment level (z)

Putting this data in the graph gives us some perspective on the diminishing returns. If the values of v and L are small, for instance, when v equals 0.1, and L equals $1M, extensive investments in cybersecurity aren’t optimal, as the expenses are higher than the benefits.

However, as the values of v and L increase, the optimal investment amount (z) and the expected loss resulting from a cybersecurity breach (vL) increase in this scenario.

In other words, the more valuable data an organization has, the more it has to lose. Once that threshold is met, not investing in cybersecurity is sitting on a powder keg. It’s a simple exercise to go through to better evaluate your organization’s standing in terms of cybersecurity. As a rule of thumb, the authors of the study suggest that organizations should generally invest less than 37% of the expected loss from a cybersecurity breach. The actual number will then need to be individually calculated based on your organization’s specifics.

How to improve your cybersecurity with NordLayer?

Cybersecurity is unavoidable in the current business environment because cyber threats aren’t going anywhere. This also has associated costs: solutions, services, personnel, and trainings. Organizations aren’t left alone without help, so for those willing to team up with cybersecurity providers — the market offers numerous opportunities that could make your company more resistant to cyber threats.

When it comes to the price, though, there are numerous factors that can also affect cybersecurity costs, like industry and size. As most cyberattacks are financially motivated, the companies with the most sensitive data are the prime targets. Although, it’s always fair to assume that no matter the industry or size, no one is immune to them.

That is why organizations need modern cybersecurity solutions that adapt to changing complexities of today’s working environments. All organizations have information that needs protecting, so all communication channels are interesting to hackers.

With NordLayer’s solutions, organizations can secure access to sensitive information and prevent reputational, legal, and financial damage. No matter what industry, NordLayer can be a reliable ally to help you stay secure. Contact us, and let’s discuss your cybersecurity journey together.