Let’s admit it: Every company today relies on technology to keep its business afloat and grow. And with all the commotion going on about breaches, leaking company data, and other cyber threats, you start to think whether your company is secure or not. Well, you, as part of your company’s C-suite, among other people, should really care about cybersecurity right now. You might not know when an attack may happen, cybercriminals don’t just notify you if they will attack your company. Your business may be of any size, but hackers don’t care about that, as long as you’re vulnerable, you’re an easy target.
Did you know? According to data, 60% of small to midsize businesses that experience a successful hack will no longer exist after six months.
This is Challenging!
A cyber attack can be extremely harmful to a business. There is no safety net for mid-market businesses. Cyber insurance is expensive and difficult to obtain, and when it comes down to it, policies only cover a portion of legitimate costs. You still need emergency funds during a cyber crisis to pay for costs and return to operation. Thus, there is a significant difference in the level of resilience between big companies and every other company in the mid-market or smaller range.
Small and midsize businesses frequently lack the resources necessary to successfully respond to accidents, which is one of the key reasons why such incidents might be more risky for them. These businesses might not have a cybersecurity-focused IT team or financial resources set aside for hiring outside consultants to assist with incident prevention and resolution. As a result, the company’s systems and data may respond more slowly and at an elevated risk of further harm.
Here are the challenges that IT operations should take into account:
1. Ransomware – When it comes to ransomware, hackers are getting more and more creative and this threat has been on the rise for years now.
2. Protecting Valuable Assets – The fact that cybersecurity helps to secure priceless assets is among the most important reasons why CEOs, boards, and investors should be concerned about it. Physical assets are worth just as much as digital assets, if not more. A successful hack may cause the loss of important data, which could result in monetary losses, reputational harm, and legal ramifications.
3. Compliance and Regulatory Requirements – To safeguard consumers and businesses, governments and regulatory organizations have put strong cybersecurity regulations into place. Significant fines and penalties, as well as harm to a company’s reputation, can arise from failure to comply with these requirements.
4. Reputational Damage – A successful cyberattack may also cause immediate damage to reputation, which might have a big effect on a business’s bottom line. Customer trust can be damaged by a data breach or attack, which can result in lost sales and income.
5. Investor Confidence – Investors with a stake in a mid-sized company’s cybersecurity posture are frequently present. Loss of shareholder value may result from a reduction in a company’s stock price brought on by cyberattacks. In addition, cybersecurity is becoming a more important consideration for investors when making investment decisions. When there is a lot of risk, investors will look elsewhere.
6. Protecting Employees and Clients – Sensitive information including dates of birth, social security numbers, and financial data might be lost as a result of cyberattacks.
What Should You Do?
In times like today, a company’s IT department now has a big responsibility. Mid-market company executives, like you, need to understand that the internal IT department should not be the sole source for cybersecurity defenses. Because of their sense of loss, the same IT departments would be unwilling to support outsourced security. Despite this, security outsourcing has been shown to be an effective tool for enhancing operational efficiency, dependability, and security. Executive will and direction from the top are required for the goal of changing cybersecurity activities to involve external entities.
For firms of all sizes, cybersecurity should be a top priority. However, for mid-sized businesses, it might have a devastating effect, making cybersecurity a survival issue. For the C-Suite, boards, PE firms, investors, and lenders, it has the potential to transform a promising asset into a significant problem.
Investors and decision-makers all need to be concerned about cybersecurity. It is crucial because it safeguards delicate data, assists businesses in complying with legal obligations, prevents harm to their reputations, and instills investor trust. It’s critical for organizations to make cybersecurity a regular board-level discussion topic and for the C-suite to push investment in strong cybersecurity services as cyber attacks continue to change and become more sophisticated.
Already convinced about outsourcing a cybersecurity company to provide robust protection to your company’s valuable data? Feel free to talk to us today!
