Top 5 cyber risk management tips for small businesses

Cyber risk management

5 cyber risk management tips for small businesses

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Despite increased threats going into 2024, many Canadian small businesses still underestimate their risk. According to the Insurance Bureau of Canada (IBC)’s 2023 Cyber Security Survey, over 60% of small businesses in Canada believe they’re too small to be targeted by cybercriminals. This underestimation rises to 73% for sole proprietors. And while the majority small businesses owners aren’t concerned about their staff posing a cyber risk, 3 out of 4 employees surveyed admit to having taken at least one action that poses a cybersecurity risk. Ransomware incidents remain a top concern, with the average ransomware incident costing Canadian companies a staggering $596,000 USD, NetDilligence’s 2023 Cyber Claims Study found. While wire transfer fraud incidents are less frequent, they surpass ransomware in average cost, amounting to $615,000 USD per incident. 

Understanding Business Cyber Insurance Policies

A cyber business insurance policy typically covers a range of incidents, including ransomware, business email compromise, hacking, and errors made by staff, among others. The coverage often extends to financial losses incurred from these incidents, data breach liability, and the costs associated with crisis management, including customer notification and support. It’s a comprehensive approach to safeguarding a business’s digital assets and reputation in an increasingly interconnected marketplace. It also determines intelligent insurance savings for your business. 

Top 5 cyber risk management tips for small businesses

 1. Acknowledge the Risk: Small businesses must recognize that they are potential targets for cybercrime. The first step in cyber risk management is acknowledging the threat, regardless of business size. 
2. Invest in Cyber Defence and Insurance: While 69% of small business insurance do not consider cyber security a financial priority, and only 20% plan to purchase cyber insurance, investing in robust cyber defence and an appropriate insurance policy is crucial for risk mitigation and your financial safety net in case your business is targeted. 
3. Staff Training: Regular training can significantly reduce the risk posed by staff mistakes, which account for a substantial number of cyber incidents.
4. Incident Response Plan: With small-to-medium businesses accounting for 98% of cyber claims, it's clear that small and mid-sized businesses need to have a robust incident response plan to mitigate the financial as well as operational impacts of cyber threats.
5. Self-Assessment Tools: Consider using IBC’s Cyber Savvy Assessment tool to help you understand and improve your business’ cyber resilience.

We understand that with the increasing risk of cyberthreats and cybercrimes, it is crucial for your business to seek protection. Therefore, our expert brokers at Akan ensure to get the best insurance plans for you. In conclusion, safeguarding your small business from cyber threats is not only essential but also achievable with the help of our brokers. Remember, cybersecurity is a shared responsibility, and by implementing these measures, you are taking a proactive step towards a secure and thriving future for your business. Stay vigilant, stay informed, and stay cyber-safe with us!

Get in touch with Akan Insurance Brokers to provide you the best cyber solutions to protect your business.

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