When it comes to measuring the success and effectiveness of penetration testing, ROI is an elusive metric that IT staff and decision-makers are concerned with, but unable to quantify.
For the leadership in a business, understanding the tangible and intangible benefits of penetration testing is crucial. In a perfect world, we’d be able to slap a number on it and call it a day, but due to the preventative nature of the service and how the impact of a potential security incident- or avoiding one- can vary wildly, there’s just no way to do that.
Penetration testing serves as a proactive measure to uncover and address vulnerabilities in systems, networks, and processes.
It’s not just about testing defenses; it’s about strengthening them to reduce risks, ensure compliance, and ultimately protect your organization’s data, staff, clients, and bottom line.
But with so many variables, where do we begin to measure penetration testing ROI?
Why Quantify Penetration Testing ROI?
Penetration testing provides actionable data to strengthen security, validate policies, and ensure compliance. Yet, translating this technical investment into financial terms is key to convincing leadership and securing buy-in for cybersecurity initiatives.
Effective communication of ROI highlights how penetration testing can reduce potential financial losses from breaches, which often include direct costs like fines, and recovery expenses, as well as indirect costs like reputational damage which can and will ruin a business.
Additionally, it demonstrates due diligence in meeting compliance requirements, avoiding penalties, and safeguarding customer data and trust.
Penetration testing also enhances an organization’s overall security posture, building trustworthiness and resilience against evolving cyber threats in the long term.
Tangible Benefits of Penetration Testing
1. Ensuring Compliance and Avoiding Fines
Regulatory frameworks like PCI DSS mandate strict security measures. Failing to meet these standards can result in fines, legal actions, or loss of business relationships. A PCI compliance test as part of penetration testing ensures adherence to regulatory requirements, directly translating to cost savings.
Let’s give an example:
- PCI DSS Non-compliance Penalty: $500,000.
- Cost of a PCI Compliance Test: $20,000.
- ROI: $500,000 – $20,000 = $480,000 saved.
This direct comparison demonstrates clear financial value while also safeguarding reputational credibility. In this case, if your business is required to comply with a regulatory framework, it often means reputable penetration testing is non-negotiable.
However, ‘check the box’ pen tests may not actually be enough to effectively confirm your business’s security. Using a penetration testing provider that emphasizes quality and thoroughness is an important part of avoiding much more serious consequences than regulatory penalties.
2. Preventing Breach Costs
Perhaps the most valuable potential benefit of a penetration test.
According to IBM’s Cost of a Data Breach Report, the average global cost of a breach in 2024 was $4.88 million, a 10% increase from 2023. In the U.S. specifically, the average cost was even higher at $9.36 million. Penetration testing helps to mitigate this risk by identifying vulnerabilities before attackers can exploit them.
For example, an internal network penetration test simulates an attack after an adversary has gained initial access. This test can uncover misconfigured privileges, weak encryption, or lateral movement paths. Fixing these issues early can prevent ransomware deployment or data exfiltration, saving millions in potential recovery costs.
3. Reducing Downtime Losses
Cyberattacks can disrupt operations, resulting in significant productivity and revenue losses. Penetration testing proactively identifies vulnerabilities that could lead to denial-of-service (DoS) attacks, ransomware infections, or system outages.
An external penetration test might uncover an unpatched vulnerability in an internet-facing system. Addressing this vulnerability can prevent operational downtime that might otherwise cost thousands per hour.
Intangible Benefits of Penetration Testing
Building Trust with Stakeholders
Regular penetration testing demonstrates a commitment to security. This proactive approach enhances trust among customers, partners, and investors.
For highly-targeted industries like finance or healthcare, this trust can be a competitive differentiator.
Strengthening Physical Security
Reputational damage from a breach can be irreparable, even more so if your business is vulnerable to physical attacks.
It’s one thing to be the victim of a phishing attack leading to ransomware deployment and exposed customer data, and it’s another to have to disclose that a threat actor had direct access to physical assets on location.
By investing in social engineering testing and physical penetration tests, organizations can identify and fix human or physical security gaps before they lead to incidents, preserving their reputation.
Calculating Penetration Testing ROI
There are certainly tangible and intangible financial benefits that we can estimate with help from additional details like average breach cost statistics by industry, and potential non-compliance penalties for industries and businesses required to meet established cybersecurity standards.
The cost of a penetration test vs. potential fees, penalties, ransoms, money lost due to downtime during an attack, etc. can serve as one estimate to uncover a rough range of potential costs and savings.
Then there are the harder-to-calculate risks on the intangible side. For these, we won’t have enough information to do more than guess at a potential number, but statistics like these drive the point home:
- 48% of organizations predict cyberattack recovery to take weeks
- 75% of consumers express readiness to sever ties with a brand in the aftermath of any cybersecurity issue
- 44% of consumers attribute cyber incidents to a company’s lack of security measures
Communicating Penetration Testing ROI to Decision-Makers
To make a compelling case for penetration testing, it’s important to tailor your messaging to resonate with leadership and align with their priorities.
- Highlight financial impact: Use the specific cost comparisons we’ve discussed already to demonstrate the measurable value of penetration testing
- Demonstrate strategic value: Emphasize how penetration testing aligns with business goals, like operational continuity, protecting sensitive customer data, enhancing market reputation, and meeting stakeholder expectations
- Leverage real-world examples: Showcase case studies, industry benchmarks, or hypothetical scenarios that illustrate tangible benefits, such as preventing multimillion-dollar breaches or mitigating costly downtime, to highlight the importance of proactive testing
Above all else, remember that if you’re seeking buy-in from less technical decision-makers, the numbers speak for themselves. Business leaders are becoming more aware of the seriousness of effective security, so it’s likely that you won’t need to hammer home the stats and numbers they’ve already heard.
Instead, focus on how specifically a penetration test can help your organization minimize the risk of having to experience a major security incident:
- Catch vulnerabilities your internal team, scanning software, or other measures might have missed
- Simulate complex, and technical human attacks observed in the real world
- Verify that prior security efforts have effectively closed security gaps and remediate any newly discovered or remaining threats
- Engage an objective, unbiased third-party service provider
- Tailored penetration tests performed by cybersecurity experts are available for all kinds of business needs and environments
The Blue Team Alpha Approach to Penetration Testing
At Blue Team Alpha, penetration testing goes beyond simple vulnerability identification. Through our AI-enabled penetration testing, we combine state-of-the-art tools with the expertise of our veteran offensive security team to deliver realistic, actionable insights.
We deliver a full suite of comprehensive penetration testing services developed over countless engagements by the best of the best in the industry and designed to simulate real-world attack scenarios.
Internal Network Penetration Testing
Simulates an attacker’s actions after breaching your network, identifying vulnerabilities in your internal infrastructure.
External Penetration Testing
Focuses on your internet-facing systems to uncover weaknesses that could allow unauthorized access.
Web Application Penetration Testing
Tests vulnerabilities in web apps, often included in external penetration testing.
AI-Enabled Penetration Testing
Combines cutting-edge automation with the expertise of our veteran team for a thorough, efficient assessment of your attack surface.
Gambler’s Penetration Test
This innovative, high-stakes approach challenges your team against nation-state-level tactics, delivering unparalleled insights into your defenses. Think we can’t get in? Give us a shout.
Why Partner with Blue Team Alpha?
As a veteran-owned cybersecurity firm, Blue Team Alpha offers state-of-the-art offensive security services. Our AI-enabled penetration testing, combined with the expertise of our certified professionals, ensures the most comprehensive assessments possible.
Whether you need an internal pentest, social engineering testing/physical penetration test, web app penetration testing, or one of the many other kinds of testing available, our tailored approach delivers actionable results.
Explore our penetration testing services and learn how we can help your business eliminate gaps in its defenses.
