Cybersecurity budgets increased by 4% this year according to the 2025 Security Budget Benchmark Report. Their report, which is based on responses collected by IANS Research and Artico Search, surveyed nearly 600 Chief Information Security Officers. As the new year approaches and budgets are being reviewed and set for 2026, it’s a good time to ask yourself, is your organization spending enough on cybersecurity?

This 4% may sound impressive. However, it’s a noticeable decline from the 8% budget growth in 2024 and, according to the annually conducted report, the lowest rate in five years. With constrained hiring and rising operating costs, many organizations are now balancing cybersecurity needs with broader macroeconomic pressures. Thoughtful budgeting is essential to mitigate your organization’s exposure to cyberattacks.

Deciding How Much Is Enough

If you’ve never created a cybersecurity budget, you’re not alone. Very small organizations often fold these costs into general technology spending. However, as your organization grows, cybersecurity becomes a core part of risk management. A dedicated budget helps ensure you’re allocating enough resources to protect operations, maintain compliance obligations, and preserve the trust of customers, employees, and other stakeholders.

After deciding to create a cybersecurity budget, you must answer an inevitable question: How much is enough? There’s no single percentage that applies to every business. Generally, spending should align with an organization’s reliance on technology and risk exposure. Businesses that depend heavily on digital systems or store confidential information typically require more robust protections than those with simpler environments. Begin by reviewing your current technological infrastructure for factors such as:

• How your systems are set up and managed?
• What protections are already in place?
• Do any past issues (such as phishing attempts or notable downtime) indicate vulnerabilities?

 
Many organizations find value in formal cybersecurity assessments. These intensive evaluations clarify your risk exposure and provide a more informed basis for budgeting. Some companies conduct assessments internally using established frameworks, while others engage external professionals to avoid bias and access specialized expertise.

Building The Budget

When you have all the pertinent information in hand, identify what you need to do to maintain existing defenses and shore up weaknesses — and calculate how much you need to spend. Most companies have recurring cybersecurity expenses, such as:

• Software subscriptions
• System updates
• Data backups
• External monitoring or support

 
Your cybersecurity budget should also account for periodic enhancements as your technology evolves or new threats emerge. Although unexpected upgrades may still be necessary — particularly if your business experiences a cyberattack — planning as far in advance as possible makes spending more predictable and easier to manage.

Adding It As A Line Item

Today’s business owners and leaders must view potential cyberattacks as likely rather than unlikely. Thus, cybersecurity is most effective when treated proactively as an ongoing priority rather than something addressed only occasionally or after a problem arises. Adding your cybersecurity budget as a recurring line item to your overall annual budget supports consistent investment and helps you plan for long-term improvements without sudden financial strain.

Just as you revisit and revise your overall budget throughout the year, review cybersecurity spending at least once annually. Your needs may increase as your business grows or adopts new technology. And as the aforementioned survey shows, cybersecurity budgets tend to fluctuate from year to year. Pay close attention to yours to help ensure it remains aligned with your operational needs and strategic objectives.

Reducing Risk

In addition to severely disrupting operations, cyberattacks create financial risk through downtime, recovery costs, and potential legal or compliance consequences. We can help you evaluate costs, set priorities, and identify the most impactful investments — whether you’re developing a cybersecurity budget for the first time or refining an existing one.