A vendor sends what appears to be a harmless message to a member of a medium-sized accounting firm. After clicking on a malicious link, the entire network is put at ransom by malware. Recovering that amount calculates into hundreds of thousands of dollars, not to mention the loss of trust in the firm and a string of missed business opportunities. What would have happened had the employee reported the phishing attempt? This illustrates the significant impact that security awareness training can have—but how can companies assess its financial implications?
Many businesses understand the necessity of cybersecurity education, but far fewer know how to quantify its return on investment (ROI). In this post, we’ll break down practical methods and tools to evaluate the ROI of employee cybersecurity training using real-world examples and key performance metrics.
What Does ROI Mean for Security Awareness Training?
When measuring the success of security training programs, ROI refers to the connection between a company’s investment in training and tangible benefits from improved security features. These benefits may involve:
- Threat prevention (in this case, fewer successful phishing attacks and malware outbreaks)
- Reduction of costs concerning incident response and recovery efforts.
- Avoiding regulatory penalties for non-compliance.
- Increased employee engagement and adherence to security protocols
The primary goal is to determine whether the financial and operational advantages surpass the costs of developing, implementing, and sustaining training.
How to Measure the Success of Security Awareness Training
Security awareness training is vital for protecting organizations from cyber threats. These five key metrics can help you measure its success.
1. Reduction in Security Incidents
The most obvious strategy is to reduce the number of security incidents and the intensity of the attacks. For example, a company that provides frequent employee training on recognizing phishing scams will see fewer successful phishing attempts.
As found in IBM’s Cost of a Data Breach report, phishing remains the most prevalent breach. However, companies with active training programs report up to an 84% reduction in click rate on phishing.
2. Employee Reporting Rates
A rise in the number of employees reporting suspicious activity is a sign that the training is taking place. Reporting rates indicate raised awareness and proactive behavior, which may help security teams detect and neutralize threats more rapidly.
3. Cost Savings from Threat Mitigation
It is much cheaper to prevent a cyberattack than to respond to one. Consider IBM’s Cost of a Data Breach Report, which reveals that the global average data breach costs $4.88 million. Avoiding these occurrences can save money.
4. Compliance Benefits
Many industries face strict regulatory requirements for cybersecurity. Security awareness programs can help businesses avoid fines and penalties by ensuring employees understand and adhere to compliance standards.
5. Employee Productivity and Confidence
A well-trained employee will be able to work more efficiently and be more confident while handling cyber threats. Downtime and panic during security events are minimized with increased confidence.
Practical Steps to Calculate ROI
To calculate the ROI of employee cybersecurity training, the following formula can be used:
ROI (%) = [(Benefits – Costs) / Costs] x 100
Let’s break it down with a practical example.
Scenario:
A mid-sized tech company invests $50,000 annually in security awareness training. Throughout the year, they avoided five occurrences that would have cost an estimated $150,000 in downtime, data recovery, and regulatory penalties.
- Benefits: $150,000 in prevented losses
- Costs: $50,000 for training program
ROI Calculation:
ROI = [($150,000 – $50,000) / $50,000] x 100 = 200%
A considerable return suggests it is an excellent training program for the business firm.
The Importance of Continuous Improvement
Cyber threats are changing rapidly. What worked in training a year ago may no longer address the current risks. Businesses must regularly update their security awareness training to reflect new attack vectors, such as AI-generated phishing scams or supply chain attacks. Continuous improvement keeps employees prepared and engaged.
Strategies for Continuous Success
- Conduct regular phishing simulations and follow-up training
- Use feedback surveys to assess training effectiveness
- Monitor incident data to identify emerging threats
How BlueTeam Networks Can Help You Maximize ROI
Practical security awareness training is far from a one-time effort but rather a strategic investment in the long-term posture of your company. BlueTeam Networks offers custom programs that reduce incidents while raising employee awareness and proving ROI. We will provide high-level tools to track performance and work out areas to improve your security training program.
Ready to take the next step in protecting your business? Contact us today to learn more about how we can help build a robust, data-driven security training strategy.