Measuring the ROI of Security Awareness Training

Introduction

Cybersecurity budgets are often tight—especially for small and mid-sized enterprises (SMEs). Executives want to know: Is our investment in security awareness training actually paying off?
While phishing simulations and staff education seem like obvious choices, proving their return on investment (ROI) can be tricky.

In this article, we break down how to measure ROI for security awareness programs, the metrics that matter, and why AI-driven phishing simulations can deliver better long-term value.

💡 This article is for informational purposes and does not constitute financial or legal advice.

Why Measuring ROI in Cybersecurity Is Difficult

Unlike marketing campaigns or sales initiatives, cybersecurity investments aim to prevent bad things from happening. That means ROI is often measured by losses avoided—which can be hard to quantify until a breach occurs.

According to the 2024 IBM Cost of a Data Breach Report, the global average cost of a data breach is $4.45 million, with phishing as the second-most common cause. For SMEs, even a fraction of that cost can be devastating.

The challenge is to translate risk reduction into measurable savings.

The ROI Formula for Security Awareness Training

A common approach to calculating ROI in cybersecurity awareness programs is:

ROI (%) = [(Estimated Losses Avoided – Program Costs) / Program Costs] × 100

Step 1: Estimate Potential Losses

Data breach costs: Legal fees, regulatory fines (e.g., GDPR penalties), recovery costs, lost business
Operational disruption: Downtime, lost productivity
Reputational damage: Lost customers, decreased trust

Example: If your estimated potential loss from a phishing attack is €200,000 and effective training can reduce that risk by 70%, your losses avoided figure is €140,000.

Step 2: Calculate Program Costs

Vendor/platform subscription (e.g., AutoPhish license)
Internal training time
Administrative overhead

Step 3: Run the Formula

If your annual training program costs €20,000 and avoids €140,000 in losses, the ROI is:

ROI = [(140,000 – 20,000) / 20,000] × 100 = 600%

Metrics That Matter

To make ROI reporting credible, track both leading and lagging indicators:

Leading Indicators (Preventive)

Phishing simulation click rates
Reported suspicious email rates
Training completion rates

Lagging Indicators (After Incidents)

Number of phishing incidents per quarter
Mean time to detect (MTTD) and respond (MTTR)
Regulatory fines or customer churn after incidents

Why it matters: Regulators like the UK ICO and ENISA increasingly expect organizations to show evidence of employee training and proactive risk management.

Case Studies and Industry Evidence

KnowBe4’s 2024 Benchmarking Report: found that after initial training and simulated phishing, users’ “phish‑prone percentage” dropped from a higher baseline to just 18.9% within 90 days, and further to 4.6% after 12 months.
UK ICO vs. Interserve (2022): A £4.4M fine was issued after a phishing attack. Lack of training and poor patching were cited as key failings. Demonstrating a history of phishing simulations could have reduced liability.
US FTC Guidance: The FTC emphasizes training as a baseline security measure—failure to do so can result in enforcement action.

Manual Training vs. AI-Driven Simulations

| Feature | Manual/Consultant-Led | AI-Driven (e.g., AutoPhish) | |----------------------------------|-----------------------|-----------------------------| | Cost per Campaign | High | Low (subscription) | | Frequency | Usually Yearly | Monthly or Continuous | | Customization | Limited | High (industry & role-based)| | Realism | Moderate | High (AI-generated emails) | | Reporting & Analytics | Manual | Automated | | Scalability | Low | High |

Why it matters: With AI-driven phishing simulations, you can run more frequent, more realistic campaigns at a fraction of the consultant cost—while collecting data that directly supports your ROI calculation.

Making the Business Case

When presenting ROI to leadership, emphasize:

Risk Reduction: Quantify the drop in phishing success rates after training.
Regulatory Compliance: Demonstrate how training supports GDPR/NIS2/FTC expectations.
Cost Efficiency: Compare the program cost to potential breach costs.
Operational Continuity: Highlight reduced downtime from security incidents.

Final Thoughts

Measuring ROI for security awareness training isn’t just an accounting exercise—it’s a way to prove that your investment is reducing real-world risk and protecting your bottom line.

Key Takeaways:

Use a clear ROI formula that includes avoided losses
Track both leading and lagging security metrics
Run frequent, realistic phishing simulations for maximum impact
Document results for compliance and executive reporting

With platforms like AutoPhish, SMEs can maximize training impact, minimize costs, and generate clear ROI evidence—turning security awareness from a “nice to have” into a proven business asset.