When it comes to cyber security, many business leaders ask the same question:
“How much should we invest, and is it really worth it?”
When you contrast the actual cost of cyber incidents with the comparatively low investment needed to put strong incident response (IR) and business continuity (BC) planning into place, the answer becomes evident.
This article breaks down the costs, shares Australian industry examples, and shows why proactive investment delivers measurable ROI.
The Cost of a Cyber Incident in Australia
According to the Australian Cyber Security Centre (ACSC) 2023–24 Threat Report:
- Average cost of a cybercrime report: AUD $71,600 for small businesses, $97,200 for medium businesses, and $71,600 for large enterprises.
- Cost per data breach: AUD $4.03 million on average (IBM Cost of a Data Breach Report 2024).
- Frequency: A cybercrime is reported every six minutes in Australia.
These costs include:
- Downtime (lost revenue, lost productivity)
- Incident investigation and forensics
- Regulatory fines (e.g., under the Privacy Act)
- Legal and PR costs
- Customer churn and reputational damage
Even a single day of downtime can cost tens of thousands of dollars for an SME — and much more for enterprises.
What Is Incident Response (IR) and Business Continuity (BC)?
- Incident Response: A structured process for detecting, containing, eradicating, and recovering from cyber incidents quickly.
- Business Continuity: A set of plans and procedures to ensure critical business operations can continue during and after a disruption — whether cyber-related or not.
Together, they form the “safety net” that keeps businesses running when disaster strikes.
Investment vs Impact: The ROI of Preparedness
| Factor | No IR/BC Plan | With IR/BC Plan |
|---|---|---|
| Time to Detect & Respond | Days or weeks | Hours |
| Average Downtime | 7–10 days for ransomware (industry average) | 1–2 days |
| Financial Loss | Full revenue impact during downtime | Significantly reduced |
| Regulatory Exposure | High risk of non-compliance fines | Faster reporting and compliance |
| Customer Impact | Loss of trust, churn | Confidence maintained with clear comms |
| Total Cost | Often 5–10× higher than prevention cost | A fraction of breach losses |
A typical IR/BC programme costs a small fraction of what even a single major incident would.
Example:
- Investment: AUD $50k annually for vCISO-led IR & BC planning and testing.
- Avoided Losses: AUD $500k–$1M in downtime, breach costs, and reputational damage.
That’s a 10x ROI — and that’s conservative.
Industry-Specific Examples
- Healthcare: Mandatory notifications to OAIC and penalties under the Privacy Act may follow a breach of patient data. Downtime has a serious negative impact on reputation and can cause delays in patient care.
- Financial Services: Businesses must maintain information security capability in accordance with APRA CPS 234. Reputational damage and regulatory scrutiny may ensue from a delayed response.
- Manufacturing: A ransomware attack can halt production, causing supply chain disruption. IR/BC plans reduce downtime and contractual penalties.
Beyond Dollars: Strategic Benefits
Investing in IR and BC planning delivers more than financial returns:
- Board Confidence: Directors can demonstrate due diligence under the Corporations Act.
- Regulatory Compliance: Faster breach reporting and risk mitigation.
- Customer Trust: Communicating effectively during a crisis preserves brand reputation.
- Staff Readiness: Training ensures teams know what to do when it matters most.
How ARANKISH Delivers ROI
At Arankish, we create and carry out business continuity and incident response plans that are specific to your company’s requirements. Our strategy consists of:
- Threat modelling and risk assessment
- Development of IR playbooks and BC plans
- Tabletop exercises and simulation testing
- Post-incident reviews and continuous improvement
We help you minimise downtime, avoid costly mistakes, and protect your reputation when incidents occur.
The Bottom Line
The cost of doing nothing is simply too high.
For Australian businesses, investing in IR and BC planning pays for itself many times over by reducing incident impact, protecting revenue, and building resilience.
Next Steps
Don’t wait for a breach to find out what it will cost you.
Find out how an IR and BC program can protect your operations and provide quantifiable return on investment by speaking with our experts at ARANKISH right now.