63% of companies plan to pass the cost of a data breach on to customers

But, Hannan argued, there may be a silver lining for CISOs. Many of the common cybersecurity budget arguments — brand reputation, compliance costs, privacy issues, data leaks, and more — are starting to wear thin on CFO and CEO audiences.

This is not the case with rising costs, which can undermine a business’s competitive position. The cost of overcoming a data breach can have an impact on market share – the kind of thing that grabs the CFO, CEO, and even the board’s attention. That could, Hannan says, give senior executives reason to rethink CISO budget requests.

“The potential for increased pricing and diluted competition gives CISOs a strong argument to ensure proper funding for cybersecurity programs,” Hannan said. “It shows that the cost of inaction – both in financial terms and reputational damage – far outweighs the cost of strong security systems.”