The cyber landscape has transformed over the last five years for many businesses. Previously, enterprises considered cyber risk to be a concern for larger, multinational companies. Recently, that has changed with smaller and medium sized enterprises (SMEs) also being impacted by cyber risk to a greater extent.
Research from the last 12 months reveals that the majority of cyber crime incidents targeting EU organisations involve ransomware at just over 81% with 15.2% involving data breaches. The same report confirms that the greatest threat to SMEs comes from financially motivated cyber criminals.
In this article, we explore the cyber threats affecting enterprises and why cyber protection insurance is growing in importance for SMEs.
Contents
- Has there been a rise in cyber threats targeting SMEs?
- Why SMEs are vulnerable to cyber threats.
- What evolving regulatory and business pressures are affecting SMEs?
- 3 business benefits of cyber protection insurance.
- GasanMamo cyber protection insurance.
Has there been a rise in cyber threats targeting SMEs?
There has been a definite rise in cyber threats and attacks against SMEs in Europe over the past two years. Experts suggest that this is because malicious cyber actors are industrialising their process with technology and AI, ensuring that they have a wider reach when it comes to targeting businesses.
Industry insiders state that potentially 1 in 4 small and medium enterprises in Europe have been singled out by cyber criminals. As digital fraud becomes more complex and sophisticated, SMEs are increasingly facing significant challenges when it comes to protecting their business from data breaches and cyber attacks.
Browse more information in our article: Cyber attacks and business risk: Is insurance worth it?
Why SMEs are vulnerable to cyber threats
Although this is not true of all, some SMEs may not have the extensive and detailed knowledge around cyber security within their business.
Here are the top five reasons why SMEs in the EU may be currently exposed to cyber threats this year:
- Cyber skills gap: Without a dedicated in-house cyber security specialist, there may be a lack of developed expertise around cyber threat and how to properly secure business systems and data.
- Lower security budget: Not every business can afford to pay for a full cyber security team on the payroll or for a cyber security expert consultancy company to give professional advice.
- Impact of human error: It’s human nature to make mistakes now and again. All businesses have to factor in the human angle when it comes to cyber security and the possibility that employees may not be fully aware of appropriate cyber security measures.
- Older systems: Systems and infrastructure may be outdated and liable to weakness when it comes to cyber threat penetration. Systems also require regular updates to maintain a high level of cyber protection.
- Supply chain exposure: Cyber criminals could exploit SMEs as a route into larger organisations if they are third-party providers.
What evolving regulatory and business pressures are affecting SMEs?
Every SME will be dealing with their own individual business pressures and exploring the best methods to overcome these challenges. However, many enterprises have the following areas in common:
Data and security
Data protection laws, such as the General Data Protection Regulation (GDPR), continue to involve extensive workflows for SMEs in order to ensure full compliance and information security.
EU SMEs also have obligations with the NIS2 Directive related to network security and the Cyber Resilience Act in terms of overall protection.
Rising costs
Many European businesses of all sizes are combatting more substantial energy costs and other increases in business-related billing which can impact the financial buoyancy of an enterprise.
Late payments
All businesses seem to be dealing with the issue of late payments. This can be serious for SMEs, who may not have the large financial resources to maintain day-to-day operations without a consistent cash flow.
3 SME benefits of cyber protection insurance
It’s true to say that there are multiple advantages for SMEs as strong information protection and robust data gatekeeping are key to high consumer confidence, positive brand reputation and future growth opportunities.
The following three benefits of cyber protection insurance are often cited by SMEs as being important:
- Rapid incident response
If a cyber attack response is not immediate, there could be vital time lost in recapturing confidential data and minimising business damage. GasanMamo Cyber Protection Insurance provides 24/7 local support through CyberSift, investigation expenses and legal and regulatory guidance.
- Data restoration
A professional and experienced cyber protection insurance provider will offer your SME the ability to restore lost data and rebuild affected systems to help bring your business operations back on line as soon as possible.
- Business interruption compensation
Check with your next cyber protection insurance company if they can equip you with support for a loss of profit, fixed operating expenses or increased costs of working that are the direct result of a cyber attack.
Discover additional information in our blog: How cyber attack insurers protect businesses.
GasanMamo cyber protection insurance
Navigating the complexities of the digital landscape today is complicated. For businesses, it can be difficult and expensive if they are not prepared. Protecting your business is important to you, and to us.
Investing in protective cyber insurance cover like the one you can find with GasanMamo, can transform your levels of security and help you mitigate financial risk, reduce the threat of a cyber incident and better manage your reputation.
If you want to know more about our business insurance policies, including cyber protection cover, get in touch with our friendly expert team for a chat and the latest information.
GasanMamo Insurance is authorised under the Insurance Business Act and regulated by the MFSA.
