Cyber Incidents, Fear of Audit Failure Drive Cybersecurity Spend in Australia: Global Thycotic CISO Decisions Survey

Adelaide, Australia, October 9, 2020 – Thycotic, provider of privileged access management (PAM) solutions to more than 10,000 organisations, including 25 of the Fortune 100, today released its CISO Decisions survey, an independent global study* that examines what most influences the Board to invest in cybersecurity and the impact this has on CISO decision-making.

Based on findings from more than 900 global CISOs/Senior IT decision-makers, including 102 in Australia, the research shows Boardroom investments in cybersecurity are most commonly the result of an incident or fears of compliance audit failure. Because of this, the research shows two thirds, or 66% of Australian respondents (58% globally) say their organisations plan to add more towards security budgets in the next 12 months.

There are positive signs that Boards are stepping up with investment. Almost nine in ten, or 88% of Australian respondents (77% globally) have received Boardroom investment for new security projects, either in response to a cyber incident at 59% of organisations (49% globally) or through fear of audit failure at 29% (28% globally). With financial penalties for GDPR now totalling EUR 175 million, 18% of Australian respondents (23% globally) believe that compliance or threats of fines are the most effective way to persuade Boards to invest in cybersecurity.

COVID-19 Drives More Security Investment

Amid growing cyber threats and rising risks through the COVID-19 crisis, CISOs report that Boards are listening and stepping up with increased budgets for cybersecurity, with the overwhelming majority in Australia, or 94% (91% globally) agreeing that the Board adequately supports them with investment. Two thirds of Australian respondents (versus 58% globally) believe that in the next financial year they will have more security budget because of COVID-19.

CISO Challenges Still Exist

However, chief information security officers have their work cut out to gain the Board’s support. Around two fifths, or 41% of Australian participants’ proposed investments (37% globally) were turned down because the threat was perceived as low risk. Around two in five, or 39% (37% globally) were turned down because the projects had a lack of demonstrable ROI. And 38% of Australian respondents (33% globally) believe senior management does not comprehend the scale of threats when making cybersecurity investment decisions.

CISOs Think Strategically But Invest Tactically

CISOs’ own approaches to buying decisions are forward looking as they try to keep up with industry developments and their sector peers. A large majority, or 74% of Australian respondents (75% globally) say they want to try out innovative new tools. However, in practice, many are guided by their industry peers, with two in five, or 40% (46% globally) benchmarking their buying decisions against other companies in their sector. This may lead CISOs to err on the side of proven, known technology rather than trying something new.

“Our study clearly shows that before CISOs can pursue technology innovation they must first educate their stakeholders about the value of cybersecurity,” said James Legg, CEO at Thycotic. “Securing Boardroom investment requires them to strike a delicate balance between innovation and compliance.” 

This balance is discernible in the way decision-makers describe their organisation’s risk profile. Over two in five, or 43% of Australian respondents (45% globally) view their organisation as ‘in the pack’ and only around a third, or 32% (36% globally) consider their organisations to be ‘pioneers’, embracing new technology advancements. Only 21% (17% globally) think their business has its finger on the pulse, prioritising investments according to the latest security threat.

“While boards are definitely listening and stepping up with increased budget for cybersecurity, they tend to view any investment as a cost rather than adding business value,” said Terence Jackson, CISO at Thycotic. “There are some encouraging signs, particularly in APAC where ROI is a leading factor in security investment decisions.”

“However, there is still some way to go,” he continued. “The fact that Boards mainly approve investments after a security incident, or through fear of regulatory penalties for non-compliance, shows that cybersecurity investment decisions are more about insurance than about any desire to lead the field which, in the long run, limits the industry’s ability to keep pace with the cybercriminals.” 

To view the full report, please visit: https://thycotic.com/resources/cyber-security-guide-to-technology-purchase-decision-making/ 

*Thycotic’s CISO Decisions survey was conducted among 908 Senior IT security decision-makers working within organisations with 500+ employees, including 102 from Australia. The interviews were conducted online by Sapio Research in August 2020 using an email invitation and an online survey. 

About Thycotic

Thycotic is the leading provider of cloud-ready privilege management solutions. Thycotic's security tools empower over 10,000 organisations, from small businesses to the Fortune 100, to limit privileged account risk, implement least privilege policies, control applications, and demonstrate compliance. Thycotic makes enterprise-level privilege management accessible for everyone by eliminating dependency on overly complex security tools and prioritising productivity, flexibility and control. Headquartered in Washington, DC, Thycotic operates worldwide with offices in the UK and Australia. For more information, please visit www.thycotic.com.