Top 5 Cybersecurity Questions for Small Businesses Answered

When you own a small or mid-level company, you know the importance of keeping your data, assets, employees, and customers secure against cyber threats. But when you hear certain headlines about malware, ransomware, and phishing attacks, many questions arise in your mind about your data privacy and business security. Even when you are surrounded by ever-evolving technology and services like cyber insurance, it can be hard to figure out where to start.

According to the report of Data Breach Investigation from Verizon, approximately 43% of cyber crimes are associated with small businesses. That means, more than half of the small businesses face data breaches and related cyber threats. The average remediation amount reached around $200,000 which is quite big for any small-level business.

So, how small and mid-level businesses can fight back and protect their data and business from cyber attacks. Here are the top 5 cybersecurity questions that every small business should ask.

1. What is the major cyber threat for small businesses these days?

In today's business era, small businesses need to be more secure with the increase in digitalization. When it comes to the major cybersecurity threats for small companies, ransomware can be considered to wreak havoc. Hackers take a huge ransom to unlock access to the sites or programs containing the sensitive data of the business. Unfortunately, it is a major threat to small-scale businesses. Hackers use phishing techniques to ask users for their confidential details and then misuse them for ransom.

Commonly, small businesses lack at maintaining their sites, data, and software on a priority basis, which leads cyber criminals to get access to reach their network.

2. Do you need to hire a cybersecurity expert to mitigate cyber risk?

Whether you rely on your in-house IT expert or outsource a professional cybersecurity expert, your security depends on how much experience and knowledge he has about risk management. Of course, you might be using various technologies and working on different sorts of software applications, tools, software, and security policies must be updated regularly. Investing in a cybersecurity expert through any reputed outing company can be worth your investment. This will give you more time to focus on business objectives instead of worrying about cyber risks and threats.

3. How much investment should you make in cybersecurity-related software, tools, and other controls?

Well, it depends on your business type, size, maintenance requirements, risk capacity, and customer expectations. Investing in cyber security tools and controls is far better than recovering from financial costs when any data breach happens to your business. It is fruitful to make an IT budget for risk management, threat monitoring, network security software as well as identity access management solutions.

According to the study, an average small business invests around 11% of its set IT budget on cyber security management. This is associated with $2,700 per employee working full-time every year.

4. How to train your employees about cybersecurity and how to begin?

Even when there was no need for remote working and the reliance on digital technologies, employees were the important assets to the companies and for the visible security. Moreover, cybersecurity technology is continuously evolving and making it possible to manage risk proactively. Filtering out the threats is now easy but eliminating the risk completely is not easy and this is where it is required to train your employees to protect the business data. With the help of security awareness and employee training programs, you can make your employees aware of using the security tools and keep the data secured with the cybersecurity strategy.

When it is about string security best practices, you should train your employees using multi-factor authentication, strong and unique passwords, and software updates. This is all helpful in securing networks and risk management for incident response. The regular training will reinforce their knowledge and lead them to protect the customers' data, the overall brand, and even the team members.

5. How to respond if any data breach or cyber attack happens to your business?

As per the study, even 30% of small businesses do not have any risk management and incident response plan to follow even in the case of a major cyber threat.

Well, some key facts are helpful to start your own incident response plan in the event of a data breach:

● The moment you identify the breach or any suspicious activities happening in your system, stop it from spreading and causing major risk. This means turning off the systems and all the connected devices while disconnecting the backup systems if they are associated with the data.

● Ask your employees to check the details and change all the passwords as soon as possible if they can.

● Contact the cybersecurity expert and if required, it is better to connect with local and federal law enforcement depending on the damage.

● Assess the risk and the damage that can affect the identity of the business and affect the employees & customers. Contact the forensics and incident response team if needed.

● Start recovering by prefixing the repairs, implementing the new software & controls, and updating the stakeholders to avoid future threats.

When it comes to informing your customers about the data breach, you should inform them as it is not just about their trust and transparency, but it's legal as well. If you address the breach, it is even the legal obligation to notify your affected customers as early as possible. In some states such as California, it's a norm that companies that have faced data breaches need to inform their customers in the most expedient time possible. There are federal laws too that the businesses need to notify customers without any unreasonable delay.

Importance of Cyber Security leads to Cyber Insurance

Apart from making business development plans, dealing with HR challenges, and handling IT budget and operations, the owners of small businesses have a lot on their plates. Luckily, various ways and tools help business owners to learn a lot about cybersecurity best practices and software to improve cybersecurity up to the next level. Well, it is good to keep in mind that cybersecurity is not a one-and-done thing; it is all about continuous improvement that both employees and employers need to work on.

This is where cyber insurance plays a crucial role. It is thus beneficial to invest in cyber insurance as it is created to safeguard your business from huge financial repercussions caused due to cyber attacks. Various types of phishing and cyber attacks can be safeguarded with an appropriate insurance plan. In fact, most cyber policies have both first-party as well as third-party liability coverage, which offers financial protection to both businesses and customers.

Conclusion

Irrespective of the type of business, you need to have a proper and comprehensive cyber insurance and security plan which reduces the chances of financial loss. Most insurers provide good cyber security and protection insurance plans for small businesses and protect their future growth.

Disclaimer: The above information is for illustrative purpose only. For more details, please refer to policy wordings and prospectus before concluding the sales.

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