The Silent Threat to Your Bottom Line: Why Cybersecurity Needs to Be on Your Radar
Why Your Bottom Line Will Benefit From Having Cybersecurity on Your Radar
In 2019, I had the opportunity to speak with over 500 CEOs through CEO peer groups like Vistage and others. During these conversations, I posed a straightforward question: “Have you conducted a comprehensive cybersecurity assessment?” Out of those 500 leaders, only 7 had done so. This stark number reflects a widespread and dangerous oversight: many CEOs and CFOs don’t see cybersecurity as a pressing business issue.
In 2024, NCX Group conducted a simple survey of over 200 SME CEOs with 100 to 500 employees to find out where cybersecurity ranks on their priority list. After all, being a CEO is about managing Accountability, Liability, and Profitability. The results were eye-opening: only 15% of those surveyed placed cyber risk in their top 10 priorities. This points to a clear disconnect—many businesses don’t see themselves as potential targets for cybercriminals, so cybersecurity fails to become a priority until it’s too late.
A perfect illustration of this came from an engineering firm CEO who, after a ransomware attack left the company struggling for over 30 days, said: “No one told me Cybersecurity was so critical” and “I’ve lost faith in my IT team to resolve this type of event, and I’ve hired the wrong people.” This sentiment underscores the realization that often comes only after significant damage is done.
Cybersecurity as a Business and Financial Risk
Cybersecurity is often seen as a technical problem, relegated to IT teams. However, after 24 years in cybersecurity consulting, one truth stands clear: it’s a financial and operational risk that every leader should prioritize. According to the Hiscox Cyber Readiness Report, fewer than 20% of SMBs feel prepared for cyber threats. This lack of readiness exposes businesses to significant risks that extend far beyond data loss.
What CEOs and CFOs Often Overlook
Many business leaders have misplaced confidence in their current systems or MSPs, assuming that basic defenses are enough. However, even with outsourced IT support, gaps often exist. The Ponemon Institute found that most SMBs don’t conduct regular cybersecurity assessments, leaving them vulnerable to unexpected incidents.
Example: A small business that experiences a ransomware attack could face days or weeks of operational downtime, which could cost upwards of $240,000 per day.
The Hidden Costs of Cyber Incidents
Cyber incidents aren’t just about the immediate recovery costs; they bring hidden impacts that can devastate a business:
- Operational Downtime: Revenue loss due to halted operations.
- Data Recovery and Legal Fees: High expenses for restoring data and addressing compliance issues.
- Reputation Damage: Losing client trust, which can impact future revenue.
Statistics show that 60% of small businesses close within six months of experiencing a cyber attack. These figures are not just numbers—they represent real businesses that could have been saved with better cybersecurity practices.
The Simple Step That Can Save Your Business
The good news? Taking proactive measures doesn’t have to be complex or costly. A cybersecurity assessment can provide a fast, affordable way to identify vulnerabilities and validate that your IT systems or MSP are up to standard. These assessments not only help align your business with insurance requirements, potentially lowering premiums but also offer peace of mind.
Cybersecurity as a Competitive Advantage
Strong cybersecurity isn’t just defensive; it’s a strategic asset. Businesses that prioritize cybersecurity are:
- More trusted by clients, leading to increased business opportunities.
- Better positioned for partnerships that require compliance.
- Able to reduce long-term costs by avoiding the high price of incidents.
Final Thoughts: Make Cybersecurity a Priority
Cybersecurity may not currently be in your top 10 business priorities, but it should be. As threats grow more sophisticated, your business’s future depends on the steps you take today. Don’t wait until a breach forces your hand—take proactive steps to secure your business now.
Ready to start? A cybersecurity assessment is a simple, effective way to protect what you’ve worked hard to build. Let’s discuss how we can help you safeguard your business and reduce risk. Schedule a meeting with an NCX Group Consultant Today.
Repost from LinkedIn – https://www.linkedin.com/pulse/silent-threat-your-bottom-line-why-cybersecurity-mike-fitzpatrick-kma0f/