Two Imminent Threats to the Success of Small & Medium-Sized Business: Part Two – SMB Cybersecurity in 2022

Better security protocols are critical for post-pandemic success

In part one of our series, we covered one of the most prominent issues facing small and medium-sized businesses (SMBs): the ability to attract and retain high-quality talent in an ultra-competitive marketplace.

In our second installment, we are going to address vulnerable technology, and why SMBs need to focus on cybersecurity in 2022.

MAXIS^® by Freed Maxick is a service for leaders seeking to perform smarter and operate more productively and profitably. While we know your day-to-day obligations are enormous, we advise elevating these two issues to help lead effectively, operate securely, and sleep better!

Cover Your Assets: Cybersecurity for SMBs

If you think hackers target only large, successful companies, think again. SMBs are often the easiest targets for cybercriminals. Unfortunately, many businesses have no idea where their exposure lies, whether through their own vulnerabilities or through those of third-party vendors, like payroll, email, and billing software, which can make it easier to steal information.

While most organizations have some element of security, it is, more often than not, unsophisticated and outdated. With the turmoil experienced in the last two-plus years, it should be no surprise that a recent article in USA Today reported, “The Department of Homeland Security’s Cybersecurity and Infrastructure Security Agency is urging small business to take immediate steps to defend themselves.”

SMB Cybersecurity Statistics in 2021

According to the “Verizon 2021 Data Breach Investigations Report,” “In studying small and medium-sized businesses, concluded the number of small business breaches increased to mirror almost exactly the number of confirmed breaches in larger organizations.”

Organizations may not even realize that accompanying the susceptibility of theft and extortion is a serious threat to their brands. Assets like intellectual property, competitive information, and proprietary data can have dire consequences if compromised. Protecting a brand is expensive. But while the cost of your reputation can be calculated, the value of customer and vendor trust is immeasurable.

What you can do to alleviate the strain of SMB cybersecurity:

• First things first — install, upgrade, or update security immediately. Understanding where your potential liability is can give you a better idea of the potential of a compromise. It may begin with assessing your hardware, software, and network (including website, hard drives, plug-ins), reviewing your inventory of equipment (computers, cell phones), and identifying internal and external individuals (accounting, operations, e-commerce services) with access to important information.
  
  Chances are some of your infrastructure may need to be improved. Engage a knowledgeable and trustworthy organization to assess your risk and advise on prevention. In addition to secure technology, policies and procedures, such as password management, will need to be developed or revised. Particular attention should be given to building additional levels of security for employees working from home and safeguards put in place for clients and vendors.

• Expedite your investment in the cloud. Research conducted by Accenture confirms that the pandemic accelerated organizations’ adoption of and migration to the cloud — The biggest catalyst being the move to remote work. The cloud enables teams, including outside accounting partners, to have access to identical information safely stored in the same location assuring better communication, collaboration, and workflow. Cloud-based tools have better reliability, timeliness, accessibility, and security.
  
  In our pandemic recovery, Gartner forecasts that the majority of businesses will maintain hybrid work models, with remote workers accounting for 53% of the U.S. workforce. Gartner also predicts that by 2024, 70% of all new midsize core financial management application projects will be cloud implementations.
  
  Do your research to identify the best product for your business. Consider that with growth you will need to scale. The ideal vendor should ensure automatic backups and updates and provide implementation and training, as well as continuing support. The investment will enable you to securely grow into the future.

• While SMBs may not require or be able to afford an internal cybersecurity team, a dedicated partner can provide much needed peace of mind. Identify an organization that is reputable in cybersecurity and knowledgeable about your industry and infrastructure, the types of data you require, and customer and vendor interaction. An organization that is able to scale is ideal, as the investment on the front end is more involved and a bigger commitment than ongoing maintenance.
  
  Cybercriminals know that small businesses “have fewer resources and staffing to prepare for, defend against and recover from attacks, sometimes with devastating consequences.” A trustworthy partner to protect your people, organization, and reputation from long-term damage is critical to thriving in our new world.

Future Focused Accounting & Advisory Services

Whether supporting the proactive contributions of employees, automating systems for better efficiency, moving assets to the cloud, or helping to protect your brand, MAXIS brings expertise and insights that make us the ideal partner to deliver the highest levels of strategic leadership, consistent results, and extraordinary business value.

The legacy of the pandemic is that rapid transformation is the new speed of business. SMBs that aren’t staying ahead will fall behind — fast and far.

While timing and other factors can vary depending on the current state and complexity of the organization, our insights bring solutions to some of the most stressful situations. Interested in learning more? Contact Alexis Becker for a complimentary consultation at 716-847-2651 or alexis.becker@freedmaxick.com.