When it comes to managing information security risks, small and mid-sized enterprises (SMEs) often face a dilemma. On the one hand, they do not have the resources or budget to implement an extensive risk management program. But on the other hand, they cannot afford to neglect this aspect because cyber attacks can damage their business.
Cybercrime has a significant impact on organisations of all sizes; in 2021–22 the average loss per report across businesses increased 14 per cent compared to 2020–21. Small businesses are perceived as a “soft target” and are increasingly targeted by attackers. This is because it is common for small to medium-sized businesses to lack adequate security measures, whether it is a lack of budget, in-house staff with the right skill sets, or just general unfamiliarity with security protocols. Fortunately, many businesses already use an IT supplier and is reasonable straight forward to request security services be included in a new or existing agreement, lifting the overall business cyber maturity. This article will explain how and why including security services as part of your IT agreement can strengthen your organization's defenses and security posture.
Boards are Increasingly Concerned with Cybersecurity
Boards are concerned with cybercrime and expect management teams to do more to protect their organization. One data breach can ruin a company. A small business's average data breach cost is AUD$ 39,000 accordingly with the ACSC Annual Cyber Threat Report, which continues to grow annually. Even if money isn't lost, other concerns are at play, such as reputation damage, from which a company may be unable to recover.
By including cybersecurity in the IT Service Agreement, companies can outsource their security needs to professionals and quickly gain much stronger cybersecurity controls and resilience. In particular, you can rapidly increase the maturity of your cyber reporting to provide your Executive team and Board with a level of assurance that proper controls are implemented. The trick is to ensure strong reporting is included as part of your service agreement. Many IT suppliers have cybersecurity capability but lack good management reporting and end up providing copious amount of cyber details that are not relevant to Executives or the Board of Directors.
In-house Security Staff is Expensive and Hard to Find
The time and money required to properly educate and adequately staff an in-house security team can be prohibitive for SMEs. In addition, new studies reveal a cybersecurity skill scarcity, which makes it harder to find qualified employees and more costly to bring a security professional on staff. In fact, according to Cybersecurity Ventures, the number of unfilled cybersecurity positions worldwide increased by 350%, from 1 million in 2013 to 3.5 million in 2021.
However, via outsourcing, organizations can gain access to highly-skilled people in the field of cybersecurity without incurring high costs. Since this is the case, you won't have to worry about managing employees full time or forking out large sums of money every month in salaries. The best part is that you’ll receive these security services on top of your other IT service agreements in the contract, so you can rest assured that you will receive your money's worth.
The Essential 8 Controls a Strong foundation for cyber Posture
In light of the ever-shifting nature of digital legislation, ensuring continued compliance with data protection regulations can be challenging. It's possible that a company's in-house IT personnel won't be able to fully grasp and adhere to all of the newest requirements, leading to costly penalties if the company fails to do so. Privacy legislations and public expectations are evolving and it is important to keep abreast of latest changes to regulations and compliance obligations.
The ACSC Essential 8 is a series of cyber controls highly recommended for small businesses. The Essential 8 controls provide a strong foundation for good cyber security posture and an attestation of good practices for cyber security in case of a breach. We highly recommend you include establishment and up keeping of Essential 8 controls as part of your IT service agreement as a way to keep in line with evolving cyber expectations. The controls are updated regularly to reflect changes in technology and good practices.
Round-the-Clock Monitoring Is Made Possible
Many IT security service providers continuously monitor your systems, enabling quick action in the event of a security breach. Having specialists on staff to do this would be immensely costly (and maybe even impossible). On the other hand, it's possible that an in-house security expert won't be reachable outside normal business hours. But many IT suppliers have the resources and manpower to make this a reality at a lower cost when included with your other outsourced IT services.
By including some level of rapid response in your IT Services agreement, you will gain the ability to react quickly in the event of cyber incidents and are more likely to minimise the impact of the threat. Several service providers are able to include an effective cyber monitoring service as part of existing or new agreements in a cost effective way.
Need Help?
If you are ready to implement more robust cybersecurity practices to protect your business better, consider outsourcing your IT security services. You can find several resources on the best way to start your journey of outsourcing your IT security services. The Australian Cyber Security Centre offers a great resource Cyber Exercise in a Box to help you understand you security posture. It is possible your IT manager can handle everything in-house however many organisations are too busy or lack the knowledge to manage an cyber security adequately.
Agile CIO Partners provides cyber security advice and vendor management to assist you in your cyber security maturity journey. We help you think strategically about your company's aim and risk management posture. Contact us if you are interested to know more.