The media is full of stories of well-known businesses falling victim to cyber-attacks leaving customers unable to access particular services or having their personal data at risk. But as we have identified in other blogs it’s not just big businesses that are at risk small and medium sized businesses are also vulnerable.
The problem is the costs of a breach can quickly escalate; the UK Government conducted a study into cyber security breaches finding that the average cost incurred was £36,500, the most costly of these being £3 million. And this does not include the lasting effect of negative PR should the incident become public.[1]
Cyber costs can be a significant hit to any company’s profit and loss and depending on MP decisions they could be set to increase. Following the data breach Talk Talk experienced in 2015, MPs are recommending raising the stakes by fining businesses who fail to protect sensitive information.
It’s clear complying with cyber security regulations should be a key part of a business’s compliance plan as attackers become more prevalent and creative, thinking beyond a stolen laptop or an intercepted email. The problem is only 52% of businesses surveyed by the Government had an effective contingency plan in place to handle an incident.[2]
Cyber-attack prevention top tips
Not many small or mid-size companies have the budget to employ a full IT team to provide technical solutions to protect against attacks and implement a contingency plan in the event of a breach. As such they rely on the knowledge of the business owner or existing employees to put systems in place. Limited knowledge of technical systems and due diligence can create potential cyber security vulnerabilities. However there are few simple steps to take to help protect your business:
- Provide employees with data security training so they can recognise suspicious emails and scams more easily
- Install security software on all computers and restrict the use of personal devices as work tools
- Visit the Cyber Essentials website to get support and guidance on protecting your business against cyber risks
- Ensuring that all the software on your system is up to date, including browsers, the operating system and any plug-ins. One of the most common ransomware exposures is software vulnerability
- Read our blog on Cyber top tips for more information.
Cyber claims are increasing and for ever varying circumstances. So if your business experiences a breach can it afford to not be protected with the appropriate level of cover? To find out more about how Cyber Liability Insurance can help protect your business visit www.jelfgroup.com/cyber, or find your local office and speak to one of our expert insurance advisers.
Sources:
[1] https://www.gov.uk/government/uploads/system/uploads/attachment_data/file/521465/Cyber_Security_Breaches_Survey_2016_main_report_FINAL.pdf
[2] https://www.gov.uk/government/uploads/system/uploads/attachment_data/file/521465/Cyber_Security_Breaches_Survey_2016_main_report_FINAL.pdf
http://news.sky.com/story/mps-mps-fine-firms-for-cyber-security-failures-10319394
Zywave cyber risks & liabilities newsletter 2016
JIB212.09.16
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