Unlocking cybersecurity insights: a guide for start-ups and scale-ups

Article by Howden.

Howden is a partner for Growth Forge 2024, a business acceleration programme for ambitious tech companies. Learn more here.

As we continue the journey through 2024, the landscape of cybersecurity is evolving at an unprecedented pace, presenting both challenges and opportunities for businesses of all sizes. 

We’ve explored the latest cybersecurity trends and the indispensable role of cyber insurance in safeguarding your business. The recent Annual Risk Barometer Report by Allianz has underscored cyber risk as the foremost global threat in 2024. Particularly vulnerable are small and medium-sized enterprises (SMEs), coveted targets for cybercriminals due to their relatively limited resources and often less robust cybersecurity protocols. With SMEs heavily reliant on external partnerships, the repercussions of cyber breaches extend far beyond their immediate sphere.

Ransomware, a persistent menace in the cyber realm, continues to plague businesses, with cybercriminals leveraging its insidious tactics to extort ransom payments or extract sensitive data. 

In a recent survey, Cyber Insurer Cowbell explored the measures SMEs are taking to avoid cyber-attacks and what their recovery plan would be should they fall victim to an attack. The results of the survey showed that around 55% of SME leaders felt confident they were prepared for an attack, and 50% of those leaders surveyed had already experienced a cyber incident in the past 12 months.

Historically, we have seen several high-profile attacks on well-known companies. These take significant time for the cybercriminal to perform, but the reward can be much higher. Businesses have certainly embraced the need to constantly check on their internal systems and risk management. However, when it comes to smaller businesses there is much more of a scattergun approach. In these scenarios, cybercriminals focus on quantity, hoping to successfully breach maybe one in 100 or one in 1,000, which leads us to ask these questions:

  • 72% of SMEs without cyber insurance said a cyber-attack could destroy their business, so do you have the time, resources, and capital to be able to continue to research, develop and grow your business in the event of an attack?
  • 90% of business leaders who experienced an incident said that the attack cost them more than anticipated, so are you confident you could survive a drop in revenue?
  • 60% of SMEs that are attacked go out of business within six months, so how confident are you that you could recover?

In this era of heightened cyber threats, cyber insurance emerges as more than a mere safety net; it’s a proactive shield against the unknown. By leveraging insights from threat intelligence feeds, dark web monitoring, and real-world claims data, insurers can pre-emptively identify and mitigate potential threats, empowering businesses to navigate the digital landscape with confidence.

While budgetary constraints may loom large, prudent allocation of resources towards comprehensive cyber coverage is an investment in the longevity and resilience of your business. Balancing cost-effectiveness with robust protection is paramount, charting a course for a resilient start-up journey defined by security and stability.

Your success story isn’t just about what you create – it’s about how you safeguard and propel it forward. For a deeper dive into the evolving cyber threat landscape and tailored solutions for your business, we invite you to reach out to Lucy or Tyne at 01841 532 939.

Let’s strengthen your business against the challenges of the digital realm and navigate a path to success together.

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