Data from a recent cyber resiliency report from The Hanover highlights that 74% of small and mid-sized business decision-makers (defined as C-level executives at businesses with 3-249 employees) are confident in their ability to prevent cyberattacks effectively.
Quite an alarming concern however, is that most businesses are said to not have basic cybersecurity prevention measures in place.
Other data from the report shows that most small and mid-sized businesses have a level of cyber risk in their everyday operations, with 67% of businesses storing business documents in a public cloud, with nearly half (49%) of businesses revealing that they have not conducted a business-wide cyber risk assessment within the past 12 months.
Moreover, it was also revealed that just 7% of small to mid-sized businesses think that it is very likely that they will experience a cyber incident in the next 12 months.
Another alarming finding from the report reveals that most small and mid-sized businesses do not have fundamental cybersecurity prevention measures in place.
This is showcased by 62% of businesses not offering cybersecurity training for all employees, as well as 50% of businesses not using multi-factor authentication, and 62% of businesses having said that they do not use endpoint protection for devices
In addition, if a cyber breach does occurs, the majority of small and mid-sized businesses are not prepared to respond, with 61% of businesses revealing that they do not have an incident response plan, and 81% of businesses stating that they do not have a post-breach response team.
Eric Cernak, president of cyber at The Hanover, said: “Amidst the digital landscape’s growing complexities, this new data unveils a stark truth: businesses are at a crossroads between acknowledging the looming cyber threat and taking meaningful actions. With a small percentage of business decision-makers thinking a cyber incident is ‘very likely,’ the difference between perception and reality is glaring.”
Adding: “This creates an opportunity for independent agents to talk with their customers about the importance of proactively managing cyber risk and leveraging cybersecurity services, like those offered through The Hanover’s CyberSecure Program™, to help prevent losses.”
The research conducted by The Hanover showcases the important role that independent insurance agents play as experienced advisers, offering risk management tips and access to services to help business owners and operators protect their operations, as well as maximize the benefits of their cyber insurance programs.
