5 Biggest Cybersecurity Risks for Small Businesses

Staying ahead of potential security risks is no small task for any business, especially smaller organizations with limited budgets, less headcount and competing priorities.

These vulnerabilities make small businesses prime targets for cyberattacks. In addition, some businesses may not be able to fully recover from a data breach or cyberattack due to the cost and complexity.

This doesn’t have to be the case. By understanding the security risks your business could face, such as the top five issues below, and by making cybersecurity a priority, you can be better prepared against potential threats.

One of the most significant issues small businesses face is operating without a formal security policy. Without documented policies and processes, responding to security incidents becomes chaotic, delayed and ineffective.

A formal security policy is a proactive approach to protecting your assets and provides clarity and direction for your employees. It establishes the groundwork for what to do in various scenarios, whether it’s a phishing attack, a ransomware threat or a hardware malfunction.

This means setting up documented playbooks or runbooks that outline step-by-step actions to be taken when an issue arises. For instance, your policy may detail who gets notified in an incident, how data recovery is executed and how to involve a third-party incident response partner if needed.

Investing time to establish a tailored security policy helps ensure you won’t be scrambling for a solution in the event of a cybersecurity crisis.

If your vendors or partners are not prioritizing security, their vulnerabilities could become your problem. It is important to vet your partners to ensure they meet your security standards. Tools are available that provide security scores for vendors, enabling you to assess their risk profiles.

Additionally, aligning with partners who adhere to industry-standard frameworks (such as HIPAA or NIST) can minimize threats. Regular evaluations and audits of third-party security practices can help identify weak links and prevent an attack. By taking control of your third-party relationships, you create a stronger chain of defenses that reduces vulnerabilities far beyond your own walls.

Ransomware remains one of the most widespread threats, targeting individuals and businesses alike. Unlike other threats, ransomware doesn’t just disrupt your operations; it can halt them altogether by locking you out of critical systems until a ransom is paid. For a small business, a ransomware attack can result in devastating downtime and financial losses.

To defend against ransomware, a layered security strategy is essential. This involves regular penetration testing to identify weak points, ensuring employees receive ongoing phishing awareness training, and using robust endpoint protection solutions to block attacks before they start.

Prevention is your best line of defense. But should the worst happen, having a solid incident response plan in place can help you recover quickly and minimize damages.

Unpatched software is an open door for attackers. Hackers often exploit outdated systems to gain access. This is why making routine updates is an essential component to reducing risk.

The process of ensuring multiple devices and platforms are updated and protected can be tedious and time-consuming, especially for businesses without robust IT resources. Thankfully, automation tools like vulnerability scanners can identify outdated software, automatically apply necessary patches and ensure critical updates are completed.

Consistency in updating your software ensures that known vulnerabilities are addressed promptly, making it much harder for attackers to gain access to your systems.

What happens if a worst-case scenario unfolds? Businesses without a dependable data backup and recovery system face a steep uphill battle in regaining operations. Hackers are also growing savvier, going as far as encrypting backups to make recovery impossible.

Backing up data isn’t just about having a copy of your files; it’s about ensuring those backups are secure and usable. Keep in mind that some hackers target backups themselves, corrupting them during an attack. This is why advanced storage solutions and backup systems with robust security measures are vital for protecting your data.

Having a disaster recovery plan that includes immutable backups, where the data cannot be modified or deleted in any way for a defined period, and offline backups to disconnected media, such as a hard drive, can help ensure your business can recover from even the most severe attacks.

In the event of an attack, businesses should disconnect any infected systems from their network to help prevent spreading and avoid deleting or reformatting any files to improve the chance that some data may be recovered. Working with a cybersecurity professional can help trace the attack and preserve any salvageable files.

Given the challenges small businesses face, it’s no surprise that many opt to work with third-party partners for their cybersecurity needs. Managed detection and response (MDR) services, for instance, can provide comprehensive monitoring and hands-on response in the event of an incident, which is extremely valuable for businesses that do not have the in-house expertise to focus on threats.

Streamlining your cybersecurity efforts by utilizing fewer, more capable tools can also reduce complexity. Businesses often achieve better results by standardizing their security tools across a smaller number of trusted vendors and products than using a patchwork of disconnected solutions.

Consider working with a trusted partner, such as CDW, that has the expertise to know which tools and strategies can best protect your business against current and emerging threats.