This podcast examines financial institution approach to security budgeting. It highlights how many credit unions erroneously base their security investments on past fraud losses, effectively assuming historical data predicts future threats. The author compares this reactive strategy to foregoing fire insurance because a house didn't burn down previously, illustrating its inherent flaw. Instead, the podcast advocates for a proactive security posture, emphasizing that digital channel security budgets should aim to minimize the maximum potential loss, rather than merely offsetting previous incidents. Ultimately, the discussion promotes a forward-looking risk assessment over a backward-looking one for robust security.