The Costs of Poor Cyber Security

Why your business needs strong cyber padlock

As a business owner, you are responsible for protecting your customers’ online data.  Unfortunately, with the risk of cyber attack and data breach ever increasing, it’s vital that businesses look for ways to improve their cyber security protocols and systems.  Here what business stand to lose if they are hit with a data breach and what they can do to protect against one.

The Cost of Cyber Attack

It’s important for business owners to understand just how badly a cyber attack or data breach will affect their company and their customers.  For starters, your business would be responsible for covering all the costs associated with the breach.  This includes the following:

  • Cost of notifying clients
  • Cost of restoring identities of affected parties
  • Cost of recovering compromised data
  • Cost of damaged computer systems
  • Cost of ongoing credit monitoring of affected parties
  • Cost of lawsuits

In addition to these monetary losses, businesses who are hit with a data breach also face reputational harm and the loss of client trust.  This can make it difficult for a business to retain customers, attract new clients, secure future contracts, and so on.  In some cases, the damage caused by the data breach is so severe that the business never recovers and is forced to close its doors.

Preventing Cyber Attacks

There are many things that your company can do to mitigate its risk for cyber attack.  For instance, here are some of the steps that you can take.

  • Train Your Employees
    • The employees that are allowed to access private information should undergo comprehensive cyber security training, so they understand the risks of a major data breach. During your staff training, you should explain your company’s login requirements, establish appropriate Internet use guidelines, and detail the penalties for violating company security policies.  You should also establish rules for handling, protecting, and inputting sensitive customer data to limit exposure.
  • Protect Your Connected Devices
    • Your company’s computers, laptops, tablets, and other connected devices should all be protected by strong antivirus software. Installing this type of software will help to protect your company’s network from being infiltrated by viruses, malware, and other online threats.  Make sure you update your software frequently to ensure that you have the latest protection available.
  • Make Backup Copies of Important Information
    • You should regularly back up your company’s computers to ensure that there is a secure copy of important word documents, electronic spreadsheets, databases, financial files, human resources files, and accounts receivable/payable files. Schedule automatic backups at least once a week, so you do not forget to take care of this important security step.

These are some of the things that you can do to improve your business’s cyber security.  Want another way to protect against your business’s online risks?  Then secure the right commercial insurance.  For assistance with all your business insurance needs, contact the experts at ISU-Wissink Insurance in Culver City, California.