Small Business, Big Threats: Navigating Cybersecurity Challenges for SMEs
July 21, 2023, 4 min read
In previous weeks I had the chance of diving into the sea of Cybersecurity challenges for SMEs. As the name implies, SMEs are, “small or middle” in comparison to the other companies in the sector. However, their size does not make them less vulnerable to threats in the cyber world. It is just the opposite, a small size may make you a bigger target. According to research conducted by Advisor Smith with 1,122 small business owners and managers in 2021, nearly half (41.8%) of all small businesses were the victim of a cyberattack in the previous year and, 69% of small businesses are concerned about being the victim of a cyberattack.
The research reveals that there is still a high percentage of (28%) of small business owners and managers that have not implemented any form of cybersecurity protocols. The state of SME’s Cyber Security posture represented with this research seems to be the reality for SMEs in the whole world besides the critical importance of Cyber Security for SMEs.
Why Cybersecurity is Crucial for SMEs
Cybersecurity is crucial for SMEs for several reasons. The most important reason is the “Financial Loss”. SMEs are often targeted by cybercriminals because they may have fewer security measures in place compared to larger organizations. A successful cyber attack can result in significant financial loss, including theft of funds, loss of business opportunities, or the cost of recovering from a data breach. Another cybersecurity challenge for SMEs should be the “loss of Customer Trust and Reputation”. As we are witnessing several cases nowadays, a data breach or cyber attack can severely damage a business’s reputation and erode customer trust. SMEs typically rely on their reputation and customer loyalty to compete with larger organizations. Losing customer trust can have long-lasting negative impacts on the business.
A distinct important reason why Cyber Security is a key concern for SMEs is “Legal and Regulatory Compliance Requirements”. Many SMEs handle sensitive customer data or are subject to industry-specific regulations. Failing to adequately protect this big data can lead to legal consequences, fines, or lawsuits. Compliance with data protection laws, such as GDPR, is essential to avoid penalties. Furthermore, it is an important part of cooperation with other companies. Compliance usually stands as the key element while working as a subcontractor or provider in various industries such as Professional Services (e.g., legal, accounting, consulting), Information Technology (IT) Services, Manufacturing, and Production, Construction, and Engineering.
The answer to the question of “Why an SME should imply Cyber Security solutions?” can have various other answers such as, “The increased need for Business Continuity”, ” Supply Chain Risk”, “Increased Threat Landscape” and ” The Preservation of Competitive Advantage”. I am not going too deep into each of these reasons underlining the importance of Cyber Security for SMEs. With this overall picture in mind, let’s have a look at some important clues for SMEs for Cyber Security.
Here are 5 key measures that an SME’ should implement for Cyber Security:
Be aware and warn your employees against Cyber Security attacks
This is called “Awareness” in Cyber Security terms. Recognize that cybersecurity challenges and threats for SMEs are a significant concern for your company. Understand the potential risks and consequences of cyber attacks, including financial loss, reputational damage, and legal implications. Educate your staff about cybersecurity best practices, such as identifying phishing emails, practicing safe browsing habits, and avoiding suspicious links or downloads. Regular training sessions can help foster a security-conscious culture within your organization.
Conduct Risk Assessment
Conduct a comprehensive assessment of your business’s cybersecurity risks. Identify vulnerabilities in your systems, networks, and processes, and evaluate potential impacts on your operations. Each business is unique and required to define its priorities as a starting point for implementing security measures.
Employ Strong Passwords and Authentication
We lived a period with username: admin, password: admin123 :). Good old days, huh? We’re living in another time right now. Be sure you use and encourage your employees to use strong, unique passwords for all accounts and implement two-factor authentication (2FA) wherever possible. This helps protect against unauthorized access to systems and data.
Employ Network Security Measures
Your network is your landscape in the Cyber world. It is the first terrain to ensure security. With this perspective, secure your network infrastructure with firewalls, intrusion detection/prevention systems, and virtual private networks (VPNs) for remote access. Regularly monitor network traffic for any signs of unauthorized activity. If you have trouble finding the right workforce for this task, you can consult professional cybersecurity companies providing monitoring and consultancy services.
Develop an Incident Response Plan
What would you do in case you encounter an emergency, a fire, or an accident? You know how to call the ambulance or fire department, right? What if you encounter a cyber attack? Do you know how to respond? Let’s say, you are faced with a ransomware attack. What actions will you take? If you have hesitations or if you don’t have any idea at all, then you’re in serious trouble. To avoid such trouble, develop an incident response plan to outline the steps to be taken in the event of a cyber-attack or data breach. This plan should include procedures for containment, investigation, mitigation, and communication with stakeholders.
Conclusion
These measures are just a curation among several measures to be taken for Cyber Security. Remember, it is advisable to consult with a cybersecurity professional or seek expert advice to ensure that you have appropriate security measures in place for your specific business needs.
To have an overall understanding, you can have a look at the cybersecurity guidelines provided for SMEs below:
