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O P I N I O N
Meaningfully reduce cyber risks
An actionable cybersecurity strategy can be established without significant financial investment, and with measurable results and rewards.
S mall and midsize businesses (SMBs; fewer than 1,000 employees) are often unprepared for cyberattacks because they erroneously believe hackers are only concerned with attacking large enterprises with deep pockets. In fact, 43 percent of all data breaches involve small and medium-sized businesses, according to Verizon. SMBs prove an attractive target for ransomware, financial fraud, and supply chain attacks due to often having less mature cybersecurity practices. According to Coro, a cyber-security platform, unprepared SMBs are a staggering 490 percent more likely to experience a breach in 2022 compared to a year ago.
Brian Nordmann
THE STATE OF SMALL BUSINESS CYBERSECURITY IN 2022. In the last year, cyber intelligence firm 4iQ reported a sobering 424 percent increase in new small business cyber breaches. On average it takes around $200,000 for a small business to recover from a typical cyberattack, according to Hiscox Insurance; 83 percent of SMBs are not financially prepared to recover from an attack, according to InsuranceBee; and 60 percent of impacted SMBs tend to go out of business within six months of a cyberattack, according to the National Cyber Security Alliance. Despite this, a report by InsuranceBee notes that 91 percent of SMBs haven’t purchased cyber insurance,
leaving themselves vulnerable to an ever-looming threat with the potential to topple their business. RISKS OF NOT DOING ENOUGH. Firms not taking precautions against cyberthreats are at risk of significant interruptions to financial and business continuity, and a tarnished reputation. Additionally, breaches may affect client expectations and rights, particularly if compliance requirements are not met. Finally, obtaining cyber insurance may prove more difficult and costly for companies that are unable to prove some level of cyber hygiene.
See BRIAN NORDMANN, page 3
THE ZWEIG LETTER MAY 2, 2022, ISSUE 1439
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