I know how it feels when cash flow is under pressure. We tend to cut expenses, and we go for the ones:
- we think are unnecessary
- others cannot obviously see that, so it seems business as usual.
It is, therefore, not surprising that many businesses are reducing the costs relating to Cyber security.
In fact, a recent survey showed that a third of small businesses are cutting back on cyber security to counter increasing costs.
The survey also found that over 50% were worried about the issue.
But cyber security came through as the lowest priority concern (cited by just 22 per cent), whereas concern about growth was 54 per cent. Over 60% said that their concentration was on how to increase revenue.
One of the issues is that most business owners are not knowledgeable about the topic, but trying to ensure a business is cyber safe is expensive. So, if you don’t understand something fully, there is a chance you may cut corners if you think you will get away with it.
Most businesses are taking action, but cybercrime is not static. It is forever evolving, and what was true yesterday is not true today. In fact, there may be a completely different truth today, and that makes it hard to keep up.
Besides, we all look at the major companies that have been hacked, and when you see what resources they have, you must conclude that what small businesses can do is pointless. Small business is doomed to fail. It is a vat of despair, and your success rate is going to be the same as rubbing your head and tapping your tummy whilst simultaneously trying to defuse a bomb.
There are many perils to ignoring cybercrime. If there is a breach, you have two key issues:
- You lose trust with customers &
- The chances are the Government is going to beat you with a very big stick.
If you want to see how quickly trust is lost, look at Optus. Last year, there was a data breach. And recently there was a service fail. Within hours, customers were willing to switch. And I think Optus now has a real image problem and I think it may need to totally rebrand in the hope people forget what they have done.
The second part is the time required to get your systems back up and running again, working out what has been lost and the disruption to the business. But there is more because there are time limits for letting the Government big wigs know that data has been snatched from under your watch. Then, you need to factor in fines that will be payable. And the fines are ginormous. Ginormous enough to put you out of business.
And even if you happen to have cyber insurance, you may find your insurance company does not want to know you because you cut corners and did not follow best practices and procedures.
My advice is to treat cyber cost as a fixed cost you can do nothing about. Think of it as rent. Because if you don’t, it is a risky slope that could end up costing you your business.
Running an efficient business is step 3 of our 9-step process in obtaining daily money freedom, financial freedom and wealth. If you would like to know more, contact Hitesh at hitesh@wowadvisors.com.au or Ros at ros@wowadvisors.com.au or call 0731619548 .
