In today's rapidly evolving digital landscape, cybersecurity has emerged as a critical priority for company leaders. As cyber threats become increasingly sophisticated, executives are recognizing the necessity of allocating substantial resources to cybersecurity, transforming it into a core component of corporate strategy. According to PwC’s
2025 Global Digital Trust Insights, 77% of executives plan to increase their cybersecurity budgets in the coming year, underscoring the strategic shift towards robust cyber defenses.
Driving Factors for Increased Cyber Investments
A key driving force behind increased cyber spend is a heightened executive awareness of risks and the escalating threat landscape that today’s companies are operating in. Cultivating a culture of cyber awareness is vital for driving this increased executive understanding and it allows cybersecurity to become embedded into all business decisions. Giving cybersecurity professionals a seat at the table for key business decisions provides visibility and transparency.
When executives truly understand these risks, it’s far easier to garner their support for further funding and investments to enhance cyber defense and resilience. This heightened awareness also helps executives connect the dots between risk and reward—helping them understand the cost effectiveness of spending where the risk mitigation benefits are greatest. Embedding cybersecurity implications into every major business initiative helps make sure that cyber risks are considered from the outset. This proactive approach aligns cybersecurity efforts with overall business strategy, fostering a culture where everyone owns cyber risk, not just the CISO.
The operational impact of ransomware attacks has also been a significant catalyst for heightened cybersecurity investments. These attacks have an immediate and tangible impact because they disrupt business operations and often have high costs associated with them, compelling companies to prioritize cybersecurity.
Theft of intellectual property or personally identifiable information (PII) is also a concern. While it may be more difficult to quantify, the impact of this type of theft can lead to long-term value destruction and warrants equal cybersecurity attention as well as investment.
Additionally, the adoption of AI and cloud technologies, while promising business value and cost savings, introduces new security and privacy challenges. Companies must navigate these challenges to maintain technological advancement without compromising security.
Geopolitical threats are also increasingly concerning for businesses. Although these threats have not yet led to substantial spending increases, they remain on the radar of corporate leaders. The regulatory environment plays a crucial role in shaping cybersecurity investments, too.
The Trump Administration is expected to bring a continued focus on national security, along with efforts to deregulate and ease burdens on the private sector. There is ongoing momentum to establish a Department of Defense Cyber Force as a dedicated branch and the administration's America-first stance, coupled with potential geopolitical tensions and nation-state targeting, underscores a defense-led priority. While there are efforts to reduce the regulatory burden on critical infrastructure, the administration is likely to pay closer attention to its security. Recent nation-state breach incidents affecting the telecom industry highlight the need for improved threat vulnerability detection, threat intelligence sharing, and response capabilities as priorities for national threat defense.
While the United States
lags behind Europe in nationwide regulation, state-specific legislation in California and New York sets high standards. The SEC's cyber disclosure rules further drive investment, pushing companies to enhance cybersecurity efforts.
Strategic Collaboration and Leadership are Crucial
Effective cybersecurity investments require strategic collaboration and leadership alignment. Ensuring that the Chief Information Security Officer (CISO) has sufficient stature and organizational positioning to affect change will be paramount in driving alignment and visibility of cybersecurity risks. Consistent risk reporting to the executive team and board is crucial for a transparent understanding of the company's risk profile. Collaboration with legal, compliance and audit teams helps companies align top risks and investment needs, prioritizing cybersecurity in key business areas and growth initiatives.
Investment Measurement is Key
Measuring the effectiveness of cybersecurity investments is essential for optimizing spending. Setting key performance indicators for cybersecurity initiatives allows companies to measure tangible outcomes. Tracking downtime after incidents serves as a measure of investment effectiveness, helping assess the return on cybersecurity investments. Utilizing enterprise risk registers provides a taxonomy for prioritizing and justifying investments, making sure resources are allocated to critical areas.
The Bottom Line
In conclusion, investing in cybersecurity is not just a defensive measure but a strategic imperative. By prioritizing cybersecurity investments based on risk, companies can address vulnerabilities, comply with evolving regulations and ultimately demonstrate tangible ROI. As cyber threats and the geopolitical risk landscape continue to evolve, executive leadership must strategically leverage resources to protect their organizations and cultivate a culture of cyber awareness.
Joe Nocera leads the PwC's Cyber & Privacy Innovation Institute, Matt Gorham currently serves as the Leader of PwC’s Cyber and Risk Innovation Institute and Michelle Horton is leads of PwC's
Cyber, Risk & Regulatory Marketing, Communications, and Analyst Relations.