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Why Is It Important To Perform A Cyber Risk Assessment In Small Businesses?

Why Is It Important To Perform A Cyber Risk Assessment In Small Businesses?

Now that we live in a digital world where almost everything requires the help of the internet and the world wide web, small businesses should rely on excellent cybersecurity. If you're thinking of conducting a cyber risk assessment for your business, we have gathered several adept pieces of advice below.

Zac Houghton, CEO of Loftera, started us off by providing this great advice:

"To protect your business, you should conduct a cybersecurity risk assessment rather than waiting and hoping that hackers won't discover any weaknesses in your network's security before doing so. How prepared you are to deal with hackers' next move depends on your security. 

A cybersecurity risk assessment is used to determine the likelihood, impact, and impact of a cyberattack on a company's reputation, finances, and overall business health. Cyberattacks are on the rise, and every company should perform regular cybersecurity risk assessments as a critical part of their procedures. Since technology changes and evolves constantly, businesses should conduct cyber risk assessments at least every two years, perhaps more often if new threats emerge. 

By reducing the potential threats and risks to the company, a cyber risk assessment can better prepare a company for the future. A cyber risk assessment can be used as a template for future assessments, especially if it is detailed. It is possible to regularly update to accommodate changes in technology, the threat landscape, and the business's needs. As a result, the business can repeat the process in the future and know what to look for."

Alex Kus, CMO of Buddy, enumerated these importances of cyber risk assessment:

"A small business, unlike larger enterprises, can often be sunk by one data breach. Trust is key to the success of small businesses, and nothing ruins that trust faster than poor data security. This is what makes doing regular cyber risk assessments so important, particularly because until many businesses hit a certain scale they do not implement formal cybersecurity practices. This, in my mind, is a mistake. The current environment is filled with data breach scandals and ransomware attacks, which means that companies that can demonstrate that they take all possible care to manage cyber risks will have a much greater degree of credibility."

Next is Nicholas Rosenfeld, Director of Making A Will.

Quantified Data Helps with Decisions

"Cyber hazards must be carefully minimized, as they are one of the most prominent concerns among corporate leaders. Companies can identify the most significant threats to their business and take the required steps to preserve their investment by conducting a cyber risk assessment. Cyber risk assessments can benefit the decision-making process by providing quantitative evidence. Many corporate leaders use these assessments to help them make better cybersecurity infrastructure decisions. Cyber risk assessments can save time and resources by reducing the need to review deceptive risks based on non-quantifiable data."

Robert Johansson, CEO of Image Kits, recommended business owners keep sight of all possibilities.

Increasing the Productivity of Employees

"Your small business cybersecurity audit will reveal software flaws, out-of-date hardware, and many other flaws that could lead to a cyberattack. Many of these flaws can have an impact on staff productivity. Older hardware, unsuitable software, and various other old systems can cause your network to slow down significantly, resulting in unscheduled downtime and poor employee productivity."

Look into the Blind Spots

"While business leaders may be unaware of any threats to their company, this does not rule out the possibility that they exist. Cyber risk assessments are intended to provide corporate executives with the information and resources they need to handle possible threats and identify areas that may have gone unnoticed previously. In the cybersecurity business, blind spots are rather common. It can be difficult for businesses to keep up with the rapid advancement of technology. A cyber risk assessment ensures that corporate leaders are aware of these hidden threats and can take the necessary steps to address them before it's too late."

Sahil Kakkar, CEO of Rank Watch

"With today's modern technology period, cyber intrusions are widespread. And, as a starting business, performing frequent cyber risk assessments ought to be a crucial component of a routine prevention procedure to establish a safe foundation for your expanding business. The cyber risk assessment is used to determine how an organization would fare in case of a cyber intrusion or attack and the resulting damage it could withstand. This could spell the difference between success and failure as a startup in the business market if you are looking to grow your business in the future." 

It can Reveal Vulnerabilities and Blind Spots

"Many small business owners may be unaware of the dangers that can jeopardize their business, particularly if they are still in their beginnings. Businesses of all sizes should keep relevant with the dynamic technological improvements and rapidly changing cyber threat environment, which might expose your existing cyber security to blind spots and weaknesses that hackers might exploit. With that said, cyber risk assessment is intended to provide small business owners with the information and expertise to evaluate potential hazards and identify blind spots so they can address them immediately and protect their critical data and information from harm's way."

Next is Farhan Advani, Director Marketing of Buy Here Pay Here.

"Cybersecurity is a cause for growing concern among small business owners. As the Internet plays an increasingly important role in day-to-day operations, cybercriminals are taking advantage of this access to commit crimes against them. It's no longer just huge corporations that need to be concerned about security breaches - all businesses, including small to medium-sized organizations, need to be vigilant in protecting their networks from the ever-increasing number of cyber threats. A growing number of small businesses are turning to cybersecurity insurance to mitigate the financial impact of a breach and save money in the long term. 

If your company is the victim of a data breach, it will be investigated by law enforcement agencies may ask you to provide any evidence that could help their investigation. Small businesses are often targeted because they are seen as easy targets or are unaware of cyber security threats. The FBI has warned that cybercriminals use phishing and social engineering to steal information. For example, cybercriminals could send an employee a fake email posing as someone within the company or from a respected business partner."

Nate Torres, the Founder of Imaginated, beseech business owners to invest in their people.

Increases Employee Cyber Security Awareness

"Cybersecurity risk assessments are excellent for getting a high-level picture of your risk. They're also useful for training employees on protecting themselves from cyber-threats in their everyday work. You'll discover spots in your network where workers are courting danger as part of the testing process. A reputable MSP must be able to engage and interact with training programs. Those training programs can go a long way toward combating cybercrime."

Increases Worker Productivity 

"Your company cybersecurity audit will reveal software flaws, out-of-date hardware, and many other flaws that might lead to a cyberattack. Many of these flaws might affect employee productivity. Older hardware, unsuitable software, and various other old systems can cause your network to slow down significantly, resulting in unscheduled downtime and poor employee productivity. 

Employee satisfaction may improve as well; no one likes working at a slow, antiquated workstation while unable to complete fundamental job functions. Employees are over 450 percent more likely to leave businesses with old, trailing technology, according to a 2018 survey by Facility Executive."

Sally Stevens, the Co-founder of Fast People Search, has these to say:

"Many small businesses often run skeleton cybersecurity plans, perhaps because there's a notion that cybersecurity threats are targeted, in most instances, towards the big boys. But that's not always the case. There's a higher propensity of being cyber-attacked as a small business because you have a lower cyber-security threshold. 

A cyber-security risk assessment is not just about identifying the potential cybersecurity threats to the business. In my case, I think that cyber-security risk assessment plays a huge role in developing a future-proof plan for the business. Undertaking a cybersecurity risk assessment allows you to plan for future cybersecurity contingencies, figure out your risk catalog both now and in the future and plan on the devices to use. 

For small businesses, undertaking a cybersecurity risk assessment is about as important as having a business plan for your business. You cannot go wrong with your cybersecurity plan if you first understand the risks and how the general cybersecurity landscape affects your small business operations."

After evaluating your cyber vulnerabilities, it's essential to know how to defend against specific threats. Delve into our blog on understanding the ins and outs of cyber extortion coverage to ensure your small business is comprehensively protected.

Teo Vanyo, the CEO of Stealth Agents, stressed the importance of prevention and ended our article with great advice.

"Rather than waiting for hackers to identify any vulnerabilities in your network's security, a small company cybersecurity risk assessment is an essential first step in proactively knowing what's working and what isn't to secure your firm. Your readiness determines the next move of a hacker. Risk evaluations help to limit the likelihood of occupational harm or mistreatment. However, there are dangers in every workplace. For example, as an employer or business owner, it is your job to impose risk assessments to safeguard employees from WHS hazards."

Protect more than just your digital assets. After assessing your cyber risks, explore our blog post on understanding reputational risk insurance to learn how to safeguard your company's good name in today’s interconnected world.

Interested in taking your small business's cyber security to the next level? Explore our in-depth A Guide to Cyber Risk Management, tailored to equip you with essential insights and tools to perform a thorough risk assessment.

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