A new term has emerged in the tech industry: “cybersecurity debt.” Similar to technical debt, cybersecurity debt refers to the accumulation of unaddressed security bugs and outdated systems resulting from inadequate investments in cybersecurity services.
Delaying these expenditures can provide short-term financial gains, but long-term repercussions can be severe, causing greater dangers and exponential costs.
What causes cybersecurity debt?
Cybersecurity debt happens when organizations don’t update their systems frequently, ignoring software patches and neglecting security improvements for short-term financial gains. Slowly, this leads to a backlog of bugs that threat actors can abuse- leading to severe consequences.
Contrary to financial debt that accumulates predictable interest, cybersecurity debt compounds in uncertain and hazardous ways. Even a single ignored bug can cause a massive data breach, a regulatory fine that can cost millions, or a ransomware attack.
A 2024 IBM study about data breaches cost revealed that the average data breach cost had increased to $4.9 million, a record high. And even worse, 83% of organizations surveyed had suffered multiple breaches, suggesting that many businesses keep operating with cybersecurity debt. The more an organization avoids addressing problems, the greater the chances of cyber threats.
What can CEOs do?
Short-term gain vs long-term security
CEOs and CFOs are under constant pressure to give strong quarterly profits and increase revenue. As cybersecurity is a “cost center” and non-revenue-generating expenditure, it is sometimes seen as a service where costs can be cut without severe consequences.
A CEO or CFO may opt for this short-term security gain, failing to address the long-term risks involved with rising cybersecurity debt. In some cases, the consequences are only visible when a business suffers a data breach.
Philip D. Harris, Research Director, GRC Software & Services, IDC, suggests, “Executive management and the board of directors must support the strategic direction of IT and cybersecurity. Consider implementing cyber-risk quantification to accomplish this goal. When IT and cybersecurity leaders speak to executives and board members, from a financial perspective, it is easier to garner interest and support for investments to reduce cybersecurity debt.”
Limiting cybersecurity debt
CEOs and leaders should consider reassessing the risks. This can be achieved by adopting a comprehensive approach that adds cybersecurity debt into an organization’s wider risk management plans.