Risk is a real concern for business owners and executives. We’re constantly seeking out strategies to mitigate potential risks that could stop operations or damage our business. So, what is the biggest risk to your business in 2024? It may not be what you think.
Recent Data
According to a survey carried out among risk management experts in late 2023 natural catastrophes was not the number one risk they were facing. Neither was macroeconomic developments, natural disasters, fire, explosion, climate change, political risks and violence, changes in legislation, or the energy crisis. Yes, they were worried about all those things.
The number one risk for businesses in 2024 is cybersecurity incidents.
Here are the numbers from statista.com.
Most businesses go out of their way to protect themselves from the various risk centers on this list. They have backup distributors to help with supply chain problems, and perhaps even have a disaster plan in place to protect against natural disaster. They may lobby extensively to defeat legislation that would harm their business or be stockpiling cash against inflation and other economic factors.
Are you doing enough to protect against the biggest threat? The impact of a cybersecurity incident can be huge financially, and potentially devastating to your brand. Why haven’t more businesses done more?
The Security Through Obscurity Fallacy
Many businesses think that they are too small to be a target of a cyber-attack. Typically, when we see news coverage of businesses that had a breach it’s always fortune 500 companies. While these businesses do get hit regularly, so do small and medium-sized businesses. News coverage goes to the larger companies because it makes a better headline.
When you stop to look at how bad actors attack the reason for this becomes plain. They will frequently use automated scanning tools that scan the web looking for a particular vulnerability. This is akin to casing a neighborhood and looking for a house with an open door or window. They see what property is vulnerable and they slip inside to see what’s valuable.
Yes, there are targeted hacking groups that are focused on a specific victim. However, those are much less common than those that are just looking for an easy point of entry.
Don’t fall for it. If you’re a small and medium business investing in the right cybersecurity solutions to mitigate your risk should be a priority.
Lack of Expertise
Many small and medium businesses simply don’t have the skillset on their team to effectively manage cybersecurity. If you have a single IT technician in house to serve your entire company, it’s not reasonable to assume they can handle cybersecurity as well. It’s also a very different skillset than your typical helpdesk technician or system administrator. Even if you have a team managing IT, they may not have an expert in cyber on staff. Depending on the size of your organization it also may not be a full-time job.
It’s also possible that like many small and medium-sized businesses you outsource your IT. Working for an IT company does not automatically make you a security expert. It’s very possible that your IT provider does not have anyone one staff with specialized cyber security training and expertise.
Cost and Complexity
Another reason many businesses haven’t yet adopted adequate cyber security protections is the cost and complexity of implementation. They simply don’t want the added expense, or to take the time to figure out how to set them up.
When you stop to calculate the cost of downtime for most companies this argument doesn’t hold water. The cost of a breach can be staggering. The cost of proper cyber security solutions to mitigate that risk is miniscule in comparison.
Implementing those solutions can be a challenge if you don’t have the skillset on your team. Luckily there are lots of cybersecurity professionals like i.t.NOW that are happy to help you put those solutions in place and monitor them for ongoing success.
Cybersecurity Insurance
There is no cybersecurity solution that can 100% guarantee your business will never have a breach. It doesn’t matter how well designed, or how much money is invested.
To further mitigate risk cybersecurity insurance is recommended.
This insurance coverage can help cover losses and downtime incurred in case of a cyber security incident or breach. Most insurance companies have started to require businesses to have at least basic network security provisions in place to qualify for a policy.
Most insurance companies will have you answer a survey about all your current cybersecurity protections as part of your application for the policy. They all have different requirements, but the most common things they ask for are multifactor authentication, endpoint detection and response, and cybersecurity awareness training.
Without the proper solutions, your application can be denied, or your premiums can be significantly higher.
Conclusion
Mitigating risk is key to ongoing success. Businesses need to invest the needed time and energy into their cybersecurity plan to ensure continued operations and data integrity.
If you need a primer on where to start here is a resource that may help. This article outlines 7 questions a CEO should be asking. The goal is to help you identify where you currently have risk and start the needed conversations to create a plan.
i.t.NOW’s team of experts also stands ready to help. We’ve been derisking businesses IT operations and cybersecurity for over 30 years. We can help do the same for you and your team. Click here to book a free risk assessment with an expert.
