How to select the right vCISO for your business 

43% of all cyberattacks are directed at small and medium-sized businesses — yet only 14% of SMBs are prepared to defend themselves. 

Small and medium-sized businesses are facing the same onslaught of cyber threats as large enterprises, without the same level of resources to combat or recover from them. 60% of SMBs that are attacked go out of business, and the majority of those close within 6 months of being hacked. 

For companies looking to protect themselves through stronger cybersecurity measures, a virtual Chief Information Security Officer (vCISO) can be the ideal solution, offering the expertise and leadership of a traditional CISO but on a flexible, cost-effective basis. Below, we’ll explore the increasingly valuable role of a vCISO in enhancing the security practices of SMBs, highlighting the key benefits, associated costs, and evaluation criteria to help you decide if a vCISO is the right choice for your business.

What is a vCISO?

A virtual Chief Information Security Officer (vCISO) is a cybersecurity expert who provides strategic security guidance to organizations on a part-time, contractual, or as-needed basis. 

Unlike a full-time CISO, a vCISO is typically engaged to fulfill the same critical functions without the financial commitment of a full-time executive position. This model makes high-level security expertise accessible to businesses of all sizes, particularly small and medium-sized businesses that may not have the resources to hire a full-time CISO.

Key responsibilities of a vCISO include: 

Strategic security planning

vCISOs take time to understand the organization’s business goals and strategic objectives and then develop and implement a comprehensive information security strategy that aligns with those goals. 

This involves establishing security policies, procedures, and controls to protect sensitive data and ensure compliance with any applicable regulatory or industry requirements. vCISOs can also recommend and oversee the implementation of security technologies and compliance automation solutions to enhance the organization's security and compliance posture.

Risk management and third-party risk management

vCISOs conduct risk assessments to identify and evaluate potential security threats and vulnerabilities, and then develop risk management plans and mitigation strategies to address identified risks. A vCISO can also assess the security posture of third-party partners and suppliers to limit your risk exposure and ensure compliance with your business’ security standards and risk tolerance. 

Regulatory and framework compliance

Ensuring compliance with relevant laws, regulations, and industry standards such as HIPAA, GDPR, and CCPA is essential for avoiding violation penalties and reputational damage. A vCISO monitors your compliance posture and ensures your business is fully prepared for security audits and third-party assessments.

Continuous monitoring and incident response 

SMBs must take a proactive approach to cybersecurity. vCISOs can implement continuous monitoring to detect vulnerabilities, proactively remediate them, and respond to any security threats in real time. A vCISO can also develop and implement an incident response plan that allows you to react quickly to contain an incident and limit its impact. In the event of an actual data breach, they will also lead the incident response team in investigating and mitigating the incident.

Security awareness and training

95% of data breaches are caused by human error — so it’s essential to build a security-aware culture into the DNA of your company from day 1. A vCISO can lead security awareness training programs that effectively educate your employees on best practices for data protection and privacy.

Board and executive reporting

vCISOs can provide regular reports and updates to the board of directors and executive management on the state of the business’ security posture, as well as advise senior leadership on high-priority security risks and mitigation strategies.

Why hire a vCISO? Key benefits for SMBs

From specialized expertise to a stronger security, compliance, and risk management, a vCISO offers compelling benefits for SMBs. Let’s take a closer look at some of the most significant ways vCISOs deliver value for growing businesses. 

Access cost-effective expertise and strategic guidance

SMBs operate with limited budgets, making it a challenge to hire a full-time CISO with the desired experience and qualifications. A vCISO provides a high level of strategic security leadership on a flexible, as-needed basis, ensuring that businesses receive expert guidance without the financial burden of a permanent salary and benefits package.

A vCISO brings a wealth of knowledge and experience, helping the businesses they work with develop and implement a robust cybersecurity strategy that’s tailored to their needs and threat landscape. By designing and implementing security measures to the specific needs and risk profile of the SMB, a vCISO can create a more resilient defense against cyber threats, reducing the likelihood of successful attacks.

In addition, navigating the complex compliance landscape can be daunting for SMBs. A vCISO not only provides essential expertise about which regulations and standards apply to the business, but also the nuts and bolts of how to achieve and maintain compliance with relevant laws and industry standards. They can prepare the business for security audits and assessments more efficiently and speed up the compliance process, helping the company unlock upmarket sales opportunities that require specific compliance certifications. Every compliance framework is different, so having a vCISO with direct experience in that framework can help companies navigate it efficiently and with peace of mind. 

Refocus internal teams on core business activities 

By delegating cybersecurity responsibilities to a vCISO, SMBs can allow their internal teams to focus on core business functions and strategic initiatives. Teams can dedicate more time and effort to launching new features and products, improving operating efficiency, and maintaining a competitive edge in the market. With a vCISO handling complex security challenges, the business can concentrate on growth and innovation, confident that its cybersecurity needs are in capable hands.

Establish scalable security practices and infrastructure

As a business scales, its security needs become more complex. A vCISO helps develop a comprehensive security strategy that aligns with and supports the business’s growth objectives. This includes assessing its current security posture, developing risk mitigation strategies, and planning for future security requirements. This proactive approach not only enhances the business's security but also ensures long-term stability and resilience against evolving cyber threats.

From a technical side, a vCISO also helps design and implement a secure infrastructure that can scale with the business, from choosing scalable security technologies, establishing security policies and procedures that can adapt to growth, and ensuring that security measures can handle increased data volumes and complexity. By integrating security into the business strategy from the outset, a vCISO ensures that the company can scale without compromising security.

How much does a vCISO cost? Assessing ROI for SMBs

The cost of a vCISO can vary widely depending on the scope of services, complexity of the organization's security needs, level of expertise, and geographic location. 

For example, hiring a vCISO for basic security assessments and policy development at an hourly rate will cost significantly less than hiring a vCISO for more complex strategic planning and security management on a monthly retainer. 

With that in mind, here’s a sample breakdown of the potential costs associated with hiring a vCISO:

Small businesses

• Typical hourly rate: $200 - $300 per hour
• Typical monthly retainer: $3,000 - $6,000 per month
• Typical project-based: $10,000 - $50,000 per project

Medium-sized businesses

• Typical hourly rate: $300 - $500 per hour
• Typical monthly retainer: $5,000 - $10,000+ per month
• Typical project-based: $20,000 - $100,000 per project

Enterprise

• Typical hourly rate: $400-600 per hour
• Typical monthly retainer: 10,000-30,000+ per month
• Typical project-based: $50,000 - $250,000 per project

Project-Based vCISO Services and Costs

• Typical security assessment: $10,000 - $20,000 for a comprehensive security assessment, risk analysis, and strategic security roadmap
• Typical ongoing security management: $5,000 - $10,000+ per month for continuous monitoring, incident response, policy updates, and compliance management
• Typical incident response and recovery: $20,000 - $50,000 for incident investigation, containment, remediation, and post-incident review
• Typical regulatory compliance consulting: $10,000 - $30,000 for compliance gap analysis, policy development, and audit preparation

While the cost of a vCISO can seem significant, it is often far less expensive than a full-time CISO. Plus, a vCISO can help ensure that SMBs maintain robust cybersecurity defenses while staying within budget. Another way to bring down the cost of a vCISO is to select a firm that partners with one of your existing tools. Secureframe customers can access our partner network of elite MSPs that offer vCISO services and get exclusive pricing and benefits. 

Hiring a vCISO for your small business can provide substantial ROI in terms of cost savings, risk mitigation, and enhanced business performance. Typically, businesses can expect to see measurable benefits within 6 to 12 months.

For example, let’s say your organization is considering hiring a vCISO on a monthly retainer of $10,000, or $120,000 annually. The financial benefits likely include: 

• Prevented security incident and breach costs: $826 - $653,587 per incident for SMBs
• Saved downtime costs: $1,670 per minute or about $100,000 an hour for companies with fewer than 25 employees
• Avoided regulatory compliance fines: Average penalty of $30,651 for SMBs
• Increased revenue from building trust with new and retained customers and partners 
• Hundreds of hours of manual work saved through implementation of a security automation platform

By strategically measuring benefits and costs, and understanding the timeline for achieving these benefits, you can make an informed decision about investing in a vCISO.

How to decide whether your SMB should hire a vCISO

There are many reasons an SMB might decide to hire a vCISO. Let’s examine a few of the most typical. 

Perhaps the most common reason is a lack of in-house expertise. Many small teams don’t have dedicated cybersecurity professionals on staff with the necessary knowledge or experience to manage complex security and compliance challenges, especially given the increasingly sophisticated cyberattacks against SMBs. 

In addition, depending on industry and competitive landscape, SMBs may need to comply with regulatory requirements like HIPAA and GDPR/CCPA, industry standards like PCI DSS, and/or in-demand security frameworks such as SOC 2 and ISO 27001. SMBs may not have the internal knowledge to achieve and maintain compliance with these standards effectively. 

Another compelling reason for SMBs to consider a vCISO is if they have already experienced a security incident or data breach. Expert guidance can be invaluable for effectively recovering from the incident, investigating its cause, preventing future occurrences, and rebuilding trust with customers and other external stakeholders. 

Lastly, an SMB that’s experiencing rapid growth, raising a funding round, or undergoing an acquisition may need enhanced security measures and strategic oversight but lack the resources to hire a full-time CISO. A vCISO can step in to develop a long-term security strategy that supports and facilitates the business’ growth and expansion goals.

If you’re still unsure if hiring a vCISO is the right choice for your business, here are a few questions you can ask yourself to help decide:

• Is our cybersecurity strategy aligned with our overall business goals and objectives?
• Do we have a clear roadmap for improving our security posture over the long term?
• Do we have a comprehensive understanding of our current security posture and vulnerabilities?
• Do we have in-house cybersecurity expertise, or are we lacking specialized knowledge in this area?
• Are our IT staff overwhelmed with security tasks on top of their regular duties?
• Are we aware of all the regulatory requirements and industry standards that apply to our business?
• Do we struggle to keep up with evolving compliance requirements such as GDPR, HIPAA, or CCPA?
• Do we have an effective incident response plan in place, or the knowledge needed to create and implement one?
• Have we experienced security breaches or incidents in the past, and how well did we respond?
• Do we have a formal risk management process to identify and mitigate security risks?
• Are we aware of potential threats and vulnerabilities that could impact our business?
• Are we looking for ways to optimize our cybersecurity spending while still achieving strong protection?
• Is our business growing rapidly, entering new markets, or undergoing mergers and acquisitions that increase our security needs?
• Do we need strategic security planning to support our business expansion?
• Do we need guidance on selecting and implementing security technologies and tools?
• Do we need to establish or enhance our security awareness training programs?
• Are we confident in our ability to assess the security practices of our vendors and third-party partners?
• Do we have the budget to hire a full-time CISO, or would a flexible, part-time or project-based solution be more cost-effective?