The ongoing threat of cyber-attack to SME
More than ever we are seeing the benefits of online platforms that support the SME community. With so many new productivity applications on the market, the opportunity to improve record collection and time-management seems endless. Many larger corporations work with high-end cyber-security products to protect their local data. Even still, breaches can happen and, when they do, they are costly in both time and valued customers.
With data breaches and cyber-attacks frequently in the news, it can be easy to think that it’s only large enterprises at risk. However, the research shows that small business is a main target, as many of them lack the security needed to prevent an attack. Even businesses that still rely on a ‘bricks-and-mortar’ approach, can be at risk.
Does your business…
• Take payments online?
• Maintain a database (email or otherwise)?
• Use a ‘cloud’ facility to manage finances?
• Use an online service to host a website?
These are just some of the ways a SME business can be compromised. Think about the consequences to your business, should your data become compromised.
Could your business recover from…
• The cost of resecuring your network?
• The expense of uncovering the extent of the damage?
• The loss of your customer’s trust with their data, possibly leading them to competitors?
• The offline time it will take to rectify and re-establish?
These potential consequences are a real risk to the bottom-line of any business. In the current climate, there are a number of ways these events can take place.
Does your business have a strategy for handling…
• Demands for ‘ransom’ payments to re-release your data?
• Full network crashes?
• Data-skimming and theft of customer details?
Most businesses acknowledge that maintaining an online presence in some way, is essential to customers and business functions. This makes complacency no-longer an option for the SME community, with regards to cyber-security and cyber-insurance. While consulting with a knowledgeable insurance broker won’t prevent a cyber-attack, the right insurance will help you recover financially should you fall prey to a nefarious hacker.
It’s not always an external attack, either. With the rise of individual presence on social media, intellectual property and business intelligence can easily be leaked, leading to a loss of profits. Oftentimes this comes about without ill-intent, however the consequences are equally as costly.
General Manager of Austbrokers Canberra David Majoribanks, wants businesses to understand the importance of working with an insurer that understands cyber-insurance. He explains;
‘Most businesses are busy working hard to support their clientele. The constant development of technology has been an incredible asset to hard-working business-owners, but has also created a dependency. It’s sad to see businesses held to ransom or lose valuable customers through a security breach. Especially when they lack adequate cover to get back on their feet.’
Want to know more?
A ten-minute chat with your broker is all it takes to get an understanding of your business's risks. To learn more, call your broker, or (02) 6140 8100 to be connected to our cyber insurance team.