Cybersecurity risks are one of the most pressing concerns for small businesses today. Whether running an e-commerce store, a consultancy, or a local shop, protecting your business from cyber threats is crucial to maintaining customer trust and avoiding potential legal and financial consequences.
In this blog, the second in our October Cybersecurity Series, we’ll focus on practical steps small businesses can take to manage cybersecurity risks effectively. We’ll break it down in a simple, actionable way to help you stay compliant and secure.
Why Should You Care About Cybersecurity?
Small businesses are often targeted because cybercriminals assume they lack the resources to invest in robust cybersecurity measures. According to the UK government’s Cyber Security Breaches Survey 2023, 38% of small businesses reported experiencing cyberattacks over the past year. This can result in devastating financial losses, data breaches, or reputational damage.
Additionally, the UK’s Data Protection Act (DPA) 2018 and the GDPR require businesses to take appropriate security measures to protect personal data. Failing to manage cybersecurity risks could result in significant fines from the ICO or legal action.
Steps to Manage Cybersecurity Risks
Managing cybersecurity risks doesn’t have to be complex or expensive. Here are five key areas where small businesses should focus their efforts:
1. Understand Your Risks
Start by identifying the specific cyber risks your business faces. This is often referred to as a “risk assessment.” For example:
- What kind of data do you store (e.g., customer details, financial data)?
- How do you store and process this data (e.g., cloud storage, local servers)?
- Who has access to it (e.g., employees, contractors)?
By understanding where your vulnerabilities lie, you can make informed decisions on what needs the most protection.
2. Implement Strong Password Policies
Weak passwords remain one of the easiest ways for hackers to access your systems. Here are a few simple rules:
- Use strong, unique passwords that are at least 12 characters long.
- Enforce multi-factor authentication (MFA) wherever possible, especially for email accounts, CRM systems, and financial applications.
- Ensure that passwords are updated regularly, and avoid using the same password across different platforms.
3. Keep Software and Systems Updated
Outdated software is a cyberattack waiting to happen. Ensure all systems, including computers, mobile devices, and cloud platforms, have the latest security patches installed. Many cyberattacks exploit vulnerabilities in outdated systems, so setting automatic updates can save time and reduce risk.
Pro Tip: Enable automatic updates for both operating systems and business-critical applications.
4. Train Your Employees
Your team is your first line of defence. Human error, such as clicking on phishing emails or downloading malicious software, accounts for many cybersecurity incidents. Invest in regular training to educate your staff on:
- Recognising phishing attempts.
- Securely handling customer data.
- Securely using company systems.
Example Scenario: Suppose an employee receives an email that appears to be from your business’s bank. With the right training, they’ll know not to click on any suspicious links or provide sensitive information without verifying the sender.
5. Create a Data Backup Plan
Regular, encrypted backups of your business data are critical to any cybersecurity plan. This ensures that even if your systems are compromised, you can recover data quickly and get your business back on track. Ideally, store backups in a secure, separate location, like an offsite server or cloud-based solution with encryption.
Maintaining Compliance with the Law
Under UK GDPR, your business has a legal obligation to keep personal data secure, which includes implementing technical and organisational measures to manage risks. Not doing so could result in fines from the Information Commissioner’s Office (ICO), which could financially blow small businesses.
To ensure compliance, consider the following:
- Privacy by design: Incorporate data protection principles into your business processes from the outset.
- Access controls: Limit access to personal data to only those employees who need it for their job roles.
- Incident response plan: Prepare a documented process for how you will handle any data breaches or cyber incidents.
Q&A: Your Cybersecurity Questions Answered
Q: I run a small business with just five employees. Do I need to worry about Cybersecurity?
A: Absolutely! Cybercriminals often target smaller businesses precisely because they expect weaker security measures. You can significantly reduce your risks without breaking the bank by implementing simple steps like strong passwords, data backups, and employee training.
Q: Is Cybersecurity expensive for a small business?
A: It doesn’t have to be. Many effective cybersecurity practices are free or low-cost. Enabling automatic software updates, using strong passwords, and training employees on essential cybersecurity awareness are inexpensive yet highly effective.
Q: How often should I conduct a cybersecurity risk assessment?
A: At a minimum, you should conduct a cybersecurity risk assessment annually or when there are major changes to your systems or how you handle data. Regular reviews will help you stay ahead of potential threats.
Further Resources
- ICO: Guide to Information Security
- NCSC: Small Business Guide to Cybersecurity
- Cyber Essentials Certification
By taking a proactive approach to managing cybersecurity risks, you’ll protect your business and build trust with your customers—something every small business owner values.
Stay tuned for next week’s blog, where we’ll explore Data Breach Response and Recovery in more detail. In the meantime, you can read our other blogs on the topic.