Zero trust implementation and economic uncertainty

Since the COVID-19 pandemic, the global economic climate has become highly uncertain, and companies have significantly reduced their budgets. While security, networking, and IT teams have to reduce employee counts, the world faces increased cybersecurity challenges due to technological innovation. Data breaches are becoming increasingly common, so companies need innovative, cost-effective security models to protect their databases.

The zero trust security model has become increasingly popular since 2021, allowing organizations to restrict access controls to their data and overall company network without hindering performance and user experience. In 2021, its implementation rate was already at 68%. 

In this article, we'll explore the intersection of economic uncertainty and cybersecurity, focusing on how you can implement zero trust principles as a strategic approach to safeguard critical assets.

Why traditional security models do not fit anymore 

Economic uncertainty and budget reductions expose many to malicious attacks, considering your organization's network is vulnerable. And once a hacker is inside your system, they can use multiple tools to damage it, including built-in ones. That's a prime weakness of traditional security systems. 

Most traditional security systems were initially developed to protect your system against external threats and assume that everything and everyone within a network can be trusted. But once a hacker or any virus has penetrated the system, they can access all data in it indiscriminately, significantly if you're compromising on cybersecurity due to budget cuts. Attackers can even impersonate legitimate users and spend time within your network to steal and tamper with information. 

Nowadays, companies often store their information on a cloud network since it's more efficient and significantly cost-effective than device storage. So, while traditional security was effective against several types of cyber threats, it's failing with cloud services and mobile networks. For example, advanced persistent threats (APTs) that can penetrate firewalls are becoming a massive problem for most cloud-based networks. 

Also, using remote devices like mobile phones on a network means that companies can no longer clearly define a network for traditional systems like VPNs and firewalls to recognize since the Zero Trust model works on the assumption that no one, even within the network, ensures much higher data security than traditional methods.

What is the Zero Trust Model?

The Zero Trust security model requires every user, application, and device to be authenticated before accessing a network. It implements controls like multi-factor authentication, network segmentation, and continuous network traffic monitoring and analysis. This model can also compartmentalize access by granting access to only those network parts necessary to get the job done for the user or the device.

The Benefits of Implementing a Zero Trust Model

1. Protection Against Data Breaches

Speaking from an economic point of view, the Zero Trust security model will save your company much more money than a traditional model would. While implementing it initially and transitioning to it might be more work, it will save you the money your company would lose fighting data breaches otherwise. 

Data breaches often come in various shapes and sizes when you least expect them. Just in 2020, when the COVID-19 pandemic first hit, the cost of an insider attack on a company was around $12 million, with about $5 million due to human negligence. Insider threats are also hard to pinpoint and avoid.

By detecting these largely invisible threats early on, the Zero Trust security model can significantly reduce the financial impact of remediation, legal consequences, and reputational damage to your company. 

When a breach occurs, the effect is often limited to the segment or zone where the compromise originated. The isolated nature of each segment prevents the lateral spread of the attack to other parts of the network. This containment is crucial for minimizing the scope of the incident and preventing it from escalating into a widespread security breach. Such a focused approach to investigation reduces the time and resources required to identify the source of the breach and understand its impact on your company. 

It also minimizes downtime, allowing critical business operations to continue functioning. At the same time, the security team addresses the incident, which means your company won't lose money or its reputation due to a security issue.

2. Operational Efficiency 

Data breaches aside, the zero trust model also makes your company's operations more efficient by following its ‘least privilege’ methodology. Users only gain access to aspects of the network that they need to get the job done, preventing what is known as a 'permission sprawl,' where users accumulate access over time. 

This reduces the overall complexity of user permission and clarifies the job tasks. Users access what is essential for their roles, preventing unnecessary strain on servers, databases, and other critical infrastructure. It also means resources are also used up more efficiently and cost-effectively.

3. Compliance and Insurance Costs

With the latest rise in the Zero Trust model's popularity due to its compatibility with cloud storage, its framework aligns with many regulatory requirements across various industries. This alignment simplifies the process of meeting compliance standards. That can help your company avoid fines and additional costs associated with regulatory violations.

Some insurance providers have also begun to acknowledge the proactive nature of Zero Trust as an advanced security measure. If you implement it and demonstrate a commitment to cybersecurity, you may be eligible for insurance premium reductions. Insurance providers view such proactive measures as a sign of risk mitigation, ultimately reducing the financial burden on your company. Beyond potential premium reductions, adopting Zero Trust can positively influence overall insurance costs. Insurance providers may view your business as a lower-risk entity, leading to more favorable terms and conditions in insurance contracts.

4. Customer Trust 

A resilient cybersecurity posture also directly influences your customer's trust in the company. With Zero Trust, your business is committed to safeguarding sensitive information and ensuring the confidentiality, integrity, and availability of customer data. This commitment strengthens customer trust and bolsters your company's reputation, giving it a competitive edge.

Endnote

The cybersecurity industry has evolved exponentially in the past few years. However, hackers continue to find unique ways to attack your organization's data network. Regardless of the solution, you should always employ a holistic cybersecurity approach to avoid drastic data breaches and the costs that come with them.

Your cybersecurity approach should include your network, like the Zero Trust security model, and be sustainable for your budget. That way, you can isolate a security incident without shutting down the entire company's operations. The Zero Trust model offers across-the-board security, selective access, and practical solutions against data breaches. That improves your long-term business cost resilience and client relationships in general.