Cyber Threats Are On The Rise, And Security Is Pricey: Hightower's Stephanie Link Talks Balancing Budget Constraints

In an era where cybersecurity threats are escalating, companies are grappling with the challenge of balancing their budget constraints with the need to protect their digital infrastructure.

During Benzinga's recent virtual event on cybersecurity, Stephanie Link, chief investment strategist and portfolio manager at Hightower Advisors, provided insights into how businesses are managing these conflicting demands.

Rising Costs Of Cybersecurity

Link emphasized the financial pressures companies face as the cost of cyber threats continues to rise. "The cost of a data breach is up this year alone, 10% year over year. The average cost is $4.9 million up from $3.8 million just in 2018," she stated, highlighting the growing financial burden on businesses. Despite the increasing costs, cybersecurity has become a non-negotiable area of investment for companies.

Prioritizing Cybersecurity Amid Tight Budgets

Businesses are being forced to prioritize their cybersecurity spending, often at the expense of other critical areas. Link noted that companies "can’t afford to wake up one morning or one evening and have their business completely obliterated."

This reality is organizations would be wise to allocate resources toward cybersecurity, even when budgets are tight.

Link also pointed out that spending on cybersecurity and artificial intelligence are among the highest priorities for chief investment officers.

“They can’t afford not to spend on cybersecurity because of all the potential damage,” she explained, emphasizing that the risks of not investing in security measures far outweigh the financial costs.

Balancing Growth And Security

While businesses continue to navigate these financial challenges, the necessity of maintaining robust cybersecurity measures remains a top concern. As Link mentioned, "67% of organizations that we talk to that you read about are deploying AI for cybersecurity," showing that companies are increasingly relying on advanced technology to mitigate risks.

This discussion at Benzinga's event sheds light on the difficult choices companies must make as they balance growth with the need to protect their digital assets.

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