TJ Moruzzi
Should business consider about a data security investment? In today’s digital landscape, the specter of data breaches looms large over businesses, threatening not only financial losses but also employment stability. Despite cautionary tales, many companies overlook data security, which endangers growth and objectives. This article delves into the imperative need for robust data security measures and offers key insights to protect against cyber threats.
Investment In Data Security To Save Millions Of Dollars And Your Employment
Numerous companies have fallen victim to severe security breaches. It results in the exposure of clients’ and employees’ data, substantial financial losses for remediation, settlements, and even C-level terminations. Despite these cautionary tales, many companies sideline data security, jeopardizing their growth and financial objectives. If a company aims to thrive and generate profits, prioritizing data security is imperative.
Impressive growth and profit margins are insignificant if a company suffers financial losses from preventable security breaches or experiences a major workforce reduction due to negligence in security practices. These outcomes overshadow any growth and profit achievements. An immediate investment in robust data security is crucial to safeguard your business and employment status. Here are key considerations when undertaking this initiative:
Security Plan
- Formulating a security plan is the fundamental step in safeguarding data.
- Similar to strategic, marketing, and development plans, a security plan should be integral to annual planning.
- Despite potential time and cost concerns, external IT experts are recommended to assess the company’s needs.
- The initial investment in a strong security plan is substantial but offers invaluable peace of mind and data protection in the long run.
Employee Awareness
- A well-crafted security plan is only effective if everyone in the company comprehends and adheres to it.
- Specific secure document saving, retention, and sharing rules must be established.
- Periodic training sessions are essential, accompanied by consistent enforcement.
- Depending on the nature of the data, employees, vendors, and consultants may need to sign non-disclosure or confidentiality agreements.
Systems With Security Measures
- Investing in suitable software or systems is crucial to facilitate work while preserving the integrity of sensitive data.
- The chosen system should incorporate non-negotiable measures such as multi-factor authentication and advanced encryption.
- Additional security features like watermarking, disabled printing, and privacy blind enhance overall data protection.
Limit Access
- CEOs and executives have faced termination after security breaches due to excessive access to systems and data.
- Access to information, even if required by many, should never be unrestricted.
- Establishing a special data room for external entities ensures appropriate access limits and allows continuous monitoring through audit logs.
- When business relationships conclude, cutting off access is imperative to prevent misappropriation and improper dissemination.
Why Businesses Must Invest In Cybersecurity?
Year after year, emerging technologies come with exciting opportunities for business expansion – each new development presents another opportunity for cyber-predators to access and maliciously use your proprietary data. In this technology-driven business society where gadgets, systems, and software change consistently, it is critical to have a prevention and safety plan in place to safeguard against massive cyber-attacks. It can significantly hinder a business’s performance.
There is a danger that a business might trade at a disadvantage for months or even years as a result of a continuing but undetected security breach.
Here are four key reasons that explain why investing in cybersecurity is peace of mind for your business and its future:
The Increase In mobile Usage Will Increase Exposure To Attacks
Corporate mobile technology is relatively new, but the adoption rate is outstandingly high, creating many opportunities for cyber-crime. Mobile devices are particularly vulnerable due to the following factors:
- Their newness to the market makes them reasonably unprotected.
- Their small size makes them prone to getting stranded in airports, terminals, and big cities, increasing the potential for theft and eventual cyber-attacks.
- Mobile malware can easily embed itself via Wi-Fis.
Lastly, the human factor—insiders now have availability and access to company information 24/7, which can, in many cases, become a dangerous breach of privacy.
Boosts Customer Trust And Brand Awareness Among Clients/Customers/Investors
Having a trustworthy cybersecurity system and team is a strong selling point and a differentiating factor when it comes to customer/client acquisition and retention. Guaranteeing that all company stakeholders’ privacy and sensitive information are protected is priceless.
By offering an outstanding feature, you will create a buzz for your business. Your customers will become your advocates, spreading the word through reviews and word of mouth and buying more of your products or services.
Not Having Cybersecurity Comes At A High Cost
Cybersecurity is crucial in today’s business world regardless of your industry, company size, product, or service. The cost of data breaches is higher than people expect.
If a company does not have an operating cybersecurity department, they most likely have to invest in cyber insurance to create a safety net if breaches occur.
Establishing a cybersecurity team and implementing an internal system is a wise investment. It can save millions of dollars and protect your brand from public embarrassment that will hinder its image and reputation.
It Exposes The Company To Regulatory Actions
Being a victim of cyber security breaches can subject you to ongoing regulatory reviews, forcing your business to comply with several audits, additional tax compliances, incident response plans, limits on access privileges, and more.
And it does not end there; cybersecurity regulations come with enforced penalties with short deadlines. Penalties may vary depending on the industry and the incident.
Even more unsettling, being sanctioned by regulations can ruin your reputation among lenders, investors, and insurance companies. The adverse effects will be reflected in inflated loan rates and insurance premiums.
The truth is that cybersecurity is more than a forward-thinking move at this point. It is essential for any business owner aiming to maintain stability and longevity. Building an internal cybersecurity team will give your company the leverage among competitors and your staff the opportunity to learn best practices to protect their information and that of their clients.
