These days, I find myself talking about cybersecurity risk with business owners. But the word “Risk” has many meanings; it depends on your context. Let’s start with the definition of risk.
In the simplest definition, risk is “the possibility of loss or damage. Risk involves the potential for encountering an undesired outcome resulting from an action or inaction.”
I sat down with Betty, the executive director of a non-profit. We started to discuss her organization, and I came to the point where I began to talk about vulnerabilities and risks. This is usually the point where eyes start to glaze over like a freshly frozen pond.
“Betty.”, I said. “We begin by doing a Cybersecurity Risk Assessment. We look at 5 elements.”
- Your Team
- Your Data
- Your Applications
- Your Network
- Your Total Financial Risk
She stopped me there and asked, “What is cybersecurity risk?”
Cybersecurity Risk Defined
That was an excellent question, one that I never stopped to define. I know what it means, but I never thought to explain it to someone.
Cybersecurity risk is the potential for harm or loss from breaches or attacks on a company’s information systems and networks. This can include a wide range of threats, such as hackers gaining unauthorized access to data, the introduction of malware that disrupts operations, or phishing scams that trick employees into revealing sensitive information.
In a practical sense, the risk encompasses anything that can compromise the confidentiality, integrity, or availability of your business’s data and IT infrastructure. Confidentiality means keeping sensitive information private. Integrity involves ensuring the accuracy and reliability of your data. Availability ensures that your information and systems are accessible to authorized users when needed.
What is the big deal? Isn’t everyone Being “Hacked”
Phew, now that we got that out of the way, I continued. Betty stopped me one more time. Betty asked, “Isn’t everyone being hacked? I get emails from big companies every day stating they have been breached, they are monitoring, etc. So isn’t our data already out there, somewhere?”
The short answer is yes; businesses like Experian, Comcast, and many others are being breached, and data is being dumped on the dark web. So, the chances of your or your customer’s data being on the dark web are strong. However, that is just one data point.
When discussing data risk, we discuss personal identifiable information (PII). Which is as simple as:
- Your Name
- Your Address
- Your email address
When combined, these things Identify you and can be used to further an attack.
Loss of Reputation
I was talking with another business owner not too long ago. He had an email breach. The criminals had entered his email system and sent emails out as his business.
This breach had affected his biggest client, and now, because of that, they are on very shaky grounds and in fear of losing this client.
The client thinks they can be so careless in their security. Where else can they be lacking? The loss of this client could sink his business.
The implications of cybersecurity risks are not limited to immediate data loss or system downtime. They can extend to financial losses due to the restoration of compromised systems, legal penalties for failing to protect customer data, loss of customer trust and business reputation, and, potentially, the long-term viability of your business.
Loss of Revenue
As I continued my conversation with Betty, I explained that the implications of cybersecurity risks are not limited to immediate data loss or system downtime. They can extend to financial losses due to the restoration of compromised systems, legal penalties for failing to protect customer data, loss of customer trust and business reputation, and, potentially, the long-term viability of your business.
In my example, the breach in that business owner’s email system resulted in him sending a fraudulent wire for $180,000. What is worse is that he almost initiated it a second time.
Imagine what would happen if you lost $180-360k from your bank account with no way of getting that money back. Could you pay your employees? What does that do to your business’s financial posture?
Total Financial Risk: The reason we do Cybersecurity Risk Assessments
As I continued with Betty, I explained that we uncover the hidden vulnerabilities in your business. By doing so, you can make intelligent business decisions on managing your cybersecurity risks. It’s about understanding your business’s threats, taking proactive steps to protect against them, and preparing to respond effectively if an incident occurs.
We summarize what we know about your business, including your revenue and payroll information—monetizing the vulnerabilities and remediation costs and presenting what the total cost of a single cyber incident could cost your business.
Your First, Last, and Best Defense
Underdog Cyber Defense, we prioritize clear communication, tailored solutions, and shared knowledge to ensure you are equipped to safeguard your business against these risks.
Want to learn how we can help your business? Call us today at 570-243-9205, or book a no-obligation consultation here.
