Despite the frequent news headlines describing security breaches all over the world, Chief Security Officers still struggle to justify security investment in the business budget to the top leadership. Dallas security companies need to consider the following 5 factors while building a security budget.
The security budget is ultimately approved by enterprise leadership. So, it is up to Chief Security Officers to optimize the allocation of that money. More funds might help, but only if they know how to spend them effectively. Therefore, planning starts before the first pitch. How vital an effective security strategy is to the health of any modern business? Let’s talk about the key steps to consider while putting together your business budget;
1. Identify Your Crown Jewels
It is necessary to figure out what the “crown jewels” of your business are. By this mean, what data, intellectual property, perimeter security, and other business security systems are most valuable? Which ones are business-critical or mission-critical? How secure they are today?
For instance, if you are a biotech company operating on the cutting edge of science, then your intellectual property will be a crown jewel. However, it must be protected at all costs for your business to flourish in today’s competitive world.
Each of the Dallas security companies will have different crown jewels. Thus, identifying your crown jewels will offer clarity about where to focus your security efforts. Also, how to prioritize various line items within your business budget.
2. Define Business Risks
Next, you need to define your business risks clearly. Business risks are any risks associated with running a successful business. While this is always something of a guessing game. It is still essential to take a realistic look at the potential threats in your region. You can hire any of the alarm companies in Dallas to do the job. Besides, the impact that each threat could have on your ability to continue to function needs consideration. Risks may involve;
- Financial losses
- Competitive advantage
- Brand reputation
- Fines or legal repercussions
The objective of defining the risks is to be able to run a cost/benefit analysis on your business budget. For example, if liability insurance costs thousands of dollars per year and protects you against the very real possibility of a million-dollar lawsuit, then it is worth investing. If you can quantify these risks, so much the better.
3. Calculate the Full ROI
Security is an investment, not just an expense. It is important to understand security is not a proactive measure but can boost revenue for your business. Therefore security measures can help the sales team of a new business and open avenues in new organizations.
Besides, investing in new security tools or processes can enable efficiency gains. However, you might be able to reduce headcount or allow your current employees to focus on strategic value-add projects.
After analyzing various line items in your proposed security budget, be sure to ask how much revenue they could bring in. The best way is to get a full picture of whether a certain solution is worth the investment.
4. Cover All the Bases
A good security budget will include quite a few line items beyond what you might think of as traditional security expenditure. Depending on your business security system, you might want to include some of the following in your budget;
- Physical security
- Employee salaries
- Managed service providers or contact employees
- Backup and data recovery
- Liability insurance and legal coverage
- Disaster recovery planning
- PR retainer
- Security patrol services
It is quite easy to forget about things like fencing, locks, guards, access control, security testing and so forth. Think comprehensively. Be as thorough as you can to avoid budgetary surprises.
5. Do Your Due Diligence on Resources
When reviewing your budgets, ask yourself the following questions;
- What resources do you currently have in place?
- Do any of the current resources already do what the new resources can do?
- If so, can you replace one or more of the resources with the new ones?
- Did we fully explore all the options before settling on these?
- Do more cost-effective options exist?
- How will the proposed security strategy work with the one we already have?
- What are the risks of doing nothing or going without this new security plan?
Depending on your business, you need to ask these questions. It is the job of a finance officer or team to make sure that we have prioritized the business budget the right way for business security. In short, it will protect the health of the business for the long haul and even contribute to revenue streams when possible.
To sum it up
The pandemic year of 2020 has changed the complete outlook on physical security needs. Security spending in your business budget needs a new approach. It is better to consult a security expert from any of the Dallas Security companies to understand how to optimize security with fewer resources.
There is no simple answer to the question of how best to allocate security budget dollars. But a thorough assessment along with an evaluation, can benefit business goals and prioritize investments in private security companies.
If you do nothing but throw security on at the end, you will spend a lot more money and get a lot less security. To help determine the appropriate levels of security spending, consult experts at Agile Security.