In today’s digital age, technology is the lifeblood of a business. It has provided organisations with more datapoints, metrics and new capabilities to inform better strategic direction and business decisions.
However, this reliance has also exposed organisations to significant cyber risks, with the recent global IT outage serving as an undeniable reality check. Whilst often viewed as a technical challenge, cyber security is fundamentally a business risk with far-reaching financial, legal, and reputational implications.
The high cost of cyber insecurity
The Australian Cyber Security Centre (ACSC) highlighted the stark contrast between the minimal cyber security budgets of many businesses and the exorbitant costs of breaches.
Small-to-medium businesses, often allocating less than $500 annually to cyber security, can face average losses of between $46,000 to $97,000 per incident. Business email compromise attacks, a common threat resulting in fraudulent invoices and altered payment details, alone can cost over $39,000.
These figures underscore the critical need for robust cyber defences to protect against substantial financial and reputational losses.
What can we do to build cyber resilience – four steps
1. Consider creating a cyber fund in your annual budget
If you are not currently investing in strengthening your cyber security posture as a business, then now is the best time to start. The number of cyber incidents experienced by Australian businesses continues to trend upwards year-on-year, as do the costs involved in recovery.
Taking proactive measures, investing in security products and services that can better equip and protect your organisation, can significantly reduce your business exposure and impact. Here's a budgeting guide to help you get started.
2. Understand your current organisation’s risk profile in relation to technology
It is hard to protect your organisation from the things you cannot see. Therefore it is important that you understand the current risks and exposure your business may have when it comes to the security and reliability of your IT systems.
Conduct penetration tests, vulnerability scanning and third party audits to identify weaknesses. As business owner, you can start to understand where your strengths lie and where the weaknesses exist in your current IT environment.
3. Perform a business impact analysis
Once you understand the risks and the vulnerabilities of your environment, it is time to evaluate the potential consequences of a cyber attack, including financial loss, downtime, and reputational damage.
Many organisations lean on cyber insurance to protect them in the event of a breach. However cyber insurance does not cover any regulatory fines you may encounter as a result of a breach, nor does it protect you from any potential financial loss your clients may incur as a result of your breach impacting their ability to conduct business.
By understanding the potential financial cost of halting your business due to downtime, the cost of recovering from a cyber incident, the cost in patching the security holes and the potential cost of losing client trust, you can better understand the types of security controls you cannot afford to go without.
4. Determining your risk tolerance
Every organisation is different and some organisations will have a higher risk tolerance than others. Cyber security costs are as long as a piece of string, it is up to you to determine where you can get the most value for money in the cyber security solutions you employ. A general rule of thumb is to balance cyber security investments with overall business objectives.
Organisations have the very real challenge of adapting to a fast paced and ever-changing environment of the digital marketplace. While technology is providing more datapoints, metrics and new capabilities to inform better strategic direction and business decisions, it has also made many organisations more vulnerable to cyber attacks.
By taking proactive steps to strengthen your defences, you can safeguard your organisation's future. Cyber security is no longer optional. It is a business imperative.
Not sure where to start? Complete our 7-minute cyber security questionnaire for a FREE quick snapshot report of your business's security posture.
Netway offers expert guidance and leading-edge solutions to help businesses build robust cyber defences. By working with us, you can protect your organisation, enhance its resilience, and achieve long-term success. Contact us to learn more.