Your board wants a security leader. Your auditor is asking who owns your security program. Your insurance carrier wants to know who is accountable for cyber risk. But when you look at what a full-time Chief Information Security Officer costs, the math does not work for a company your size.
This is where the fractional CISO model enters the conversation. But is it the right move for your business, or are you just kicking the can down the road? Here is an honest comparison.
What a CISO Actually Does
Before comparing fractional vs. full-time, it helps to understand what a CISO is supposed to deliver. A CISO is responsible for your organization's information security strategy, risk management, compliance posture, incident response planning, and security awareness. They translate technical risk into business language and make sure leadership understands what is at stake.
For most SMBs, this role also includes hands-on work: selecting security tools, managing vendor relationships, conducting risk assessments, overseeing penetration tests, and responding to incidents. At larger companies, a CISO manages a team. At an SMB, the CISO often is the team.
The Full-Time CISO: What It Really Costs
A full-time CISO in the United States typically commands a total compensation package between $250,000 and $400,000 per year, depending on geography, industry, and experience level. That includes base salary, benefits, bonuses, and often equity.
Beyond compensation, you need to factor in the cost of the security tools and team they will need to be effective. A CISO without a budget is just an expensive risk register. Expect to add another $100,000 to $300,000 annually for tooling, training, and potentially a junior security analyst to support them.
Total cost of a full-time security program: $350,000 to $700,000 per year.
For companies with fewer than 250 employees or under $50 million in revenue, that is a significant commitment. It can work if security is central to your value proposition, such as in healthcare, fintech, or defense contracting, where customers and regulators demand it. But for many SMBs, it is simply over-budget.
The Fractional CISO: How It Works
A fractional CISO provides the same strategic leadership and expertise on a part-time or retainer basis. Depending on the engagement, a fractional CISO might work 10 to 40 hours per month with your organization. They attend key meetings, own your security roadmap, manage compliance programs, and serve as the point of contact for auditors and incident response.
Monthly costs for a fractional CISO typically range from $5,000 to $15,000, depending on scope and complexity. That puts your annual spend between $60,000 and $180,000 — a fraction of the full-time cost while still getting experienced security leadership.
The best fractional CISOs bring experience across multiple industries and company sizes. They have seen the same problems at dozens of organizations, which means they can identify risks faster and implement proven solutions without reinventing the wheel.
CenterMarq's Security and Compliance service includes fractional CISO capabilities as part of a comprehensive security program tailored for SMBs.
When a Fractional CISO Makes Sense
A fractional CISO is the right choice when:
- Your company has fewer than 200 employees. You need security leadership, but not 40 hours per week of it.
- You need to achieve compliance quickly. A fractional CISO who has guided dozens of companies through HIPAA, SOC 2, or CMMC can get you there faster than a new hire learning your environment.
- You are between stages. Maybe you are growing toward needing a full-time CISO but are not there yet. A fractional engagement bridges the gap.
- Your budget is constrained. The math is simple — $10K per month vs. $30K per month for the same strategic outcome.
- You need external credibility. Having a CISSP-certified security leader on your team builds trust with clients, partners, and auditors.
When to Go Full-Time
Consider a full-time CISO when:
- You are in a heavily regulated industry (healthcare, financial services, defense) with daily compliance demands.
- You have more than 500 employees and the security workload genuinely requires full-time attention.
- Security is your product. If your customers are buying security or trusting you with sensitive data as a core part of your service, security leadership should be in-house.
- You have experienced a significant breach and need someone dedicated to rebuilding your program and restoring trust.
- You have budget for a team. A full-time CISO without a team or tools budget is set up to fail.
The Hybrid Approach
Many organizations start with a fractional CISO and transition to a full-time hire as they grow. The fractional CISO builds the foundation — policies, processes, tools, and culture — and then helps recruit and onboard their full-time replacement. This is actually the most common path we see.
CenterMarq's fractional leadership model is designed with this transition in mind. We build programs that are documented, transferable, and designed to scale.
Making the Decision
The decision between fractional and full-time is ultimately about matching your security needs to your budget and growth stage. Most SMBs under $50 million in revenue will get better value from a fractional model. The key is choosing a partner with real enterprise security experience — not someone who learned cybersecurity from a certification boot camp last year.
Look for a fractional CISO with verifiable certifications (CISSP, CISM), demonstrated experience in your industry, and a track record of building programs that survive audits. Ask for references from companies similar to yours in size and complexity.
The worst outcome is doing nothing. Every month without security leadership is a month of accumulating risk. Whether you go fractional or full-time, the important thing is to get someone accountable for your security posture now.
Ready to explore what a fractional CISO could look like for your organization? Schedule a free consultation to talk through your specific situation.