News Feature | September 24, 2014

As Businesses Grow, Executives Try To Better Manage Cyber Risk

By Cheryl Knight, contributing writer

SMB IT Data Security

With cyberattacks on the rise, companies are scrambling to find ways to protect themselves from cyber criminals.

A recent Hiscox survey, DNA of an American Entrepreneur 2014, revealed signs of innovation and growth in the nation’s small- and medium-sized businesses. A promising 51 percent of participants were optimistic about the upcoming year, and 57 percent saw growth in new customers. The study polled 500 small- and medium-sized businesses across the U.S. One area of concern, though, is in the amount, or lack thereof, of cyber security these businesses employ to protect their digital assets.

“Businesses both in the U.S. and abroad have weathered the storm of recent years and are looking forward to the year ahead with increasing courage and confidence,” said Ben Walter, CEO of Hiscox USA. “The overall sentiment, as seen both in the survey and our daily conversations with small business owners, is a positive one bolstered by renewed signs of growth and opportunity.”

A Lack Of Protection

One of the most surprising statistics in the report, however, is the relaxed approach that many small business owners take toward cyber security. Only 38 percent of those surveyed changed passwords when an employee left the company. Also, only 27 percent of respondents send secure information via encrypted email, and only 33 percent require employees to change their passwords on a regular basis. In addition, only 15 percent have cyber risk insurance.

How To Help Your SMB Customers

In a Business Solutions article, F-Secure security advisor Sean Sullivan points out that many SMBs don’t have the time, staff, expertise, or IT resources to ensure that their businesses are protected.

F-Secure has devised tool that can help SMBs assess their cyber security risk: The SMB Cyber Security Stress Test.

If the test reveals an SMB is lacking in any areas, managed service providers can point to specific areas that an SMB is missing and directly show what value the services provider can offer.