Maximizing your cybersecurity budget: A practical guide

Cybersecurity and Infrastructure Security Agency (CISA) budget reductions might seem like a government-only problem. But the ripple effects are already hitting private organizations hard. 

While these cuts don't directly take money out of a private company's bank account, they send a powerful message. It can inadvertently signal that security threats are diminishing or no longer a top-tier concern. This perception, however wrong, can echo in boardrooms across the country. 

For any security leader trying to protect their organization, this new climate means they need to be more prepared than ever to defend their strategy, their team, and their budget.

With potentially dwindling resources, how can you keep your organization safe and make a compelling case for critical investments like security training?

The effects of federal budget cuts and other economic conditions have already impacted private sector organizations.

Recent research reveals that 85% of organizations have experienced budget or resource-related changes in the past six months. The most common impacts include increased workloads, team restructuring, and reduced capacity for detection and monitoring.

Perhaps more concerning is the erosion of trust in public-private collaboration. The majority of security professionals believe these changes will hinder threat intelligence sharing, while 86% warn that disbanding key federal review boards will disrupt post-incident coordination. 

The takeaway? Organizations can no longer rely on the same level of government support they've grown accustomed to.

With federal support diminishing, private organizations are being forced to become more self-reliant. That includes creating their own cybersecurity policies and frameworks outside of government guidance.

This shift is particularly challenging for smaller organizations. Rural hospitals, local water utilities, and smaller businesses that previously relied on free federal resources now find themselves navigating cybersecurity challenges with limited guidance.

Despite these challenges, cybersecurity spending is still expected to grow. Gartner forecasts that global cybersecurity spending will increase 15% in 2025, reaching $212 billion. 

However, this growth isn't evenly distributed. Many organizations are scaling back their intended security investments due to budget uncertainties, with 46% of companies reducing their 2025 cybersecurity spend.

For security leaders trying to maintain or increase their budgets for managed security services during these uncertain times, the key is to build a compelling business case that speaks directly to leadership concerns. Here's how to approach it.

When talking with leadership, stop leading with the technical specifications of security tools. Instead, start conversations with the potential business impact of security incidents. 

For example, small and medium businesses that experience cyber incidents see average losses exceeding 10% of their annual revenue. What’s more, 32% of companies report losing customer trust after a cybersecurity incident, and 42% experience direct revenue loss. Data like this makes the business case for security resources much clearer.

The average cost of dealing with insider threats reached $8 million for small and medium businesses in 2023. Frame your security investments against these potential costs rather than as standalone expenses.

Security leaders need to understand how their organizations make decisions and allocate resources. Identify your organization's strategic priorities and show how cybersecurity investments directly support these goals. 

For example, if your organization is focused on growth, explain how strong security enables safe expansion. If cost optimization is a priority, demonstrate how proactive security measures prevent expensive incident response. If you’re adopting cloud, show how extensive cloud security will streamline that transformation.

Given the new reality, here are practical approaches security leaders should consider to optimize their security strategy and budget.

With less federal support available, you'll need stronger internal capabilities. This might mean shifting budget from other areas to training and certifications rather than relying on government-provided resources that may not be there anymore.

You might also consider involving generative AI in your security workflow. I created a course on how to get that started in your organization.

Government information sharing isn't as reliable as it used to be, so you need stronger relationships with other companies in your sector, industry ISACs, and private threat intelligence providers. These connections can often provide better, more timely information than what you'll get from federal sources.

When your budget is tight, you can't afford to chase every possible threat. Figure out what actually puts your organization at risk and focus your security investments there. It's better to do a few things really well than to spread yourself too thin.

Human error still causes most data breaches, and a well-trained workforce often prevents more incidents than expensive security tools. The math usually works out in your favor when you compare training costs to what you'd spend cleaning up after a breach.

To justify training investments, focus on measurable outcomes. Show how training reduces incident response costs, decreases the likelihood of successful phishing attacks, and improves overall security posture. Many organizations find that a blend of free resources and targeted paid training provides the best value.

Explore cybersecurity skill development and hands-on learning for your teams.

Design your security programs to work without depending on federal resources or guidance. If government support comes back stronger later, great, but don't count on it.

The cybersecurity landscape is entering a new phase where private organizations must take greater responsibility for their own security. While this transition is challenging, it also presents opportunities for organizations to build more resilient, self-sufficient security programs.

The security leaders who successfully navigate this transition will be those who can clearly articulate the business value of cybersecurity investments, build strong internal capabilities, and create security programs that don't depend on external support to function effectively.

Prepare your organization for emerging threats with the How to close the cybersecurity skills gap guide.