As the world becomes increasingly reliant on digital platforms, it is crucial for businesses and risk management professionals to prioritize cybersecurity and invest in the prevention of cyber threats. Surprisingly, many businesses have plans in place for various other emergencies, such as fire, flood, and COVID-related issues, but fail to have action plans prepared for cyber attacks. The minutes, hours, and days following a cyber attack are crucial, making business continuity planning essential in order to save time, money, and address the threat effectively.
A strong cybersecurity policy is integral to any business continuity plan. It ensures that businesses are adequately addressing weaknesses, preparing for potential threats, and ready to mitigate an attack if necessary. Organizations need to be able to quickly and effectively detect and respond to a cyber incident in order to minimize financial, operational, and reputational harm. Effective cybersecurity and robust incident response plans are necessary to handle such incidents. Conversely, a poor cybersecurity policy can disrupt business continuity, making a cyber attack more likely, as defensive measures are not in place. Additionally, it can exacerbate the impact of an attack by failing to establish necessary policies for recovery, ultimately affecting revenue and productivity.
One of the ways poor cyber policies can cost businesses money is through the various costs associated with a data breach. This includes fines, lawsuits, and extra staff wages. Direct costs may involve payments to IT consultants or the attackers themselves. Long-term costs can include hiring new staff or improving security measures. Indirect costs may arise from staff being unable to complete their work or devices needing replacements. Under GDPR regulations, individuals may be entitled to claim compensation from an organization if they have suffered material or non-material damage as a result of the organization breaking data protection laws. This can result in further financial losses and reputational damage.
In addition to financial losses, poor cyber policies can lead to a loss of reputation for businesses. When customers become aware that a company has experienced a data breach, they may lose trust in the brand and choose to use a competitor or avoid the affected company’s services altogether. Consumers are unwilling to risk their personal data by providing it to a company with a poor cybersecurity policy. This loss of trust can translate to a loss of revenue for the organization. Furthermore, reputational damage can have a snowball effect, as other businesses may decide against working with the affected company due to concerns about their cybersecurity practices.
Poor cyber policies can also significantly impact productivity. A data breach can disrupt essential processes, preventing staff from carrying out their day-to-day work. This can result in missed deadlines and overtime. Examples of productivity loss include a hairdresser losing access to their booking system, a construction company losing access to their subcontractor database, or a small manufacturer losing their production line and communication with customers. In the short term, dealing with a cyber attack requires unplanned time and effort. It can involve mitigating the attack and dealing with downtime caused by the loss of access to networks and data. In the long term, compromised financial or personal data takes time to correct, and cybersecurity training and audits are necessary to update policies.
To reduce potential losses, businesses can take measures to enhance their cybersecurity practices. Conducting a cyber business continuity exercise is a crucial step in creating a plan that identifies major risks and potential disruptions. The policies developed from such exercises form the defense against attacks and potential losses. These policies should identify threats, outline actions to prevent them, and assign responsibility to individuals for maintaining security and responding to breaches. Steps should be taken to prevent disruptions where possible, allowing essential processes to continue. Cybersecurity policies need to be reviewed regularly due to evolving cybercriminal techniques and tools. Mitigations listed within the policy may include antivirus software, firewalls, and regular updates and patches to ensure protection against vulnerabilities.
Furthermore, policies should cover data protection and compliance with GDPR regulations, particularly as most booking systems and account details are now stored online. Businesses that need assistance with reviewing their business continuity plans or running exercises such as gap analysis, impact assessments, and risk determinations can seek help from nonprofit organizations like the North East Business Resilience Centre (NEBRC). The NEBRC, in partnership with the Police and the National Cyber Security Centre (NCSC), provides support based on the International Business Continuity Management Systems standard ‘ISO/IEC 22301:2019’ to strengthen and evaluate plans.
In conclusion, poor cybersecurity practices can lead to significant financial and reputational losses for businesses. It is essential for businesses to prioritize cybersecurity and invest in preventative measures. This includes developing a comprehensive cybersecurity policy as part of the business continuity plan, regularly reviewing and updating policies, and conducting exercises to identify major risks and potential disruptions. By implementing robust cybersecurity measures, businesses can protect their operations, finances, and reputation, ultimately reducing potential losses.