Cyber risk: The fastest growing threat to businesses

cyber threat

As the end of the year approaches, many business owners will be asking themselves what they will do differently in 2020.

Cyber risk has been in the headlines throughout 2019, with a 37% spike over the past three months according to Business Insurance UK. However, surprisingly little is understood about this very real threat to businesses.

The following points present some of the greatest challenges in terms of cyber risk. In turn, these challenges expose businesses of all sizes to hacking and cybercrime.

The myth of immunity

Every business is at risk – from home-based start-ups to large corporates. It is a common misconception that SMEs are somehow out of the crosshairs of cyber criminals. Quite simply, if your business relies on a computer to any degree, this presents a vulnerability you cannot avoid.

IT companies and security

IT support companies are rarely security experts. However, it is often the tacit understanding of many business owners that their IT companies will enhance their security in some way and assist in the case of a breach.

A ‘new’ form of insurance

With the increased prevalence of cybercrime, so the market for cyber insurance has grown in recent years. A word of caution on this. This can mean, in some instances, that there is a lack of specialised cyber experience within the insurance industry. It also means that green cyber insurance brokers cannot adequately assess risk and provide the cover necessary to meaningfully mitigate this risk for their clients.

Can’t budge on budget

Cyber considerations often fall outside of SMEs’ budgets and strategies. As a result, even those who may have concerns around data breaches and cybercrime can open themselves to risk. Failing to allocate funds to security measures and cyber insurance has the potential to be a deeply costly error.

How damaging is a cyber-attack?

The degree of damage to your business depends on the nature of the attack or breach. In general, businesses can expect potentially damning financial losses, disruption to the running of your business, and very damaging effects to reputation.

What’s the risk to your business?

The risk to each business is different, with business owners responsible for guarding against myriad scenarios. Some of these threats include:

  • Data breaches, loss, or theft.
  • Losses as a result of human error.

Since the advent of GDPR, business responsibility around third-party data has also taken a position of prominence like never before. This requires strict adherence to regulated procedure, potential fines, and damage control in the event of a breach.

Smarter Business has added business insurance to their comprehensive suite of services. The IT company you choose to handle your cyber insurance is fundamental for the quality of advice and ongoing reliability. Working alongside strategic partners with more than 15 years’ cyber insurance experience, Smarter Business provides cover tailored to your specific business needs.

Contact Smarter Business today to find out more about their business insurance offering.