Digital transformation changed the way the modern world does business. The outcomes of digital transformation – efficiency and cost-savings from things like digital payments and cloud-based data storage – have been game-changing, but unfortunately, doing business in the digital world has also presented a new set of risks.
For years, bad actors have been attacking businesses online, but recently, the threats have multiplied. Now, there’s ransomware, malware, DDoS and a multitude of other cyberattacks that businesses must contend with.
The risk of cyberattacks has risen exponentially in recent years, with 37% of all businesses reporting ransomware attacks in 2021 – costing the world $20 billion. With that amount of risk, organizations cannot afford to continue business operations without a cybersecurity plan in place.
Some enterprise tech trends ebb and flow, but demand for heightened cybersecurity protection is here to stay. 2023 is the year we’ll see a wave of new businesses embrace cybersecurity strategies – here’s why.
Increased Risk Continues for SMBs
A cybersecurity program is like insurance – it feels like an inconvenient added expense that will likely go unused, but when you need it, you’re sure glad you have it. For many SMBs, cost is the primary issue.
The majority of small businesses are aware they need some form of cybersecurity, but when it comes to shopping for products, executives feel sticker shock. Unfortunately, SMBs are less likely to have a budget allocated for cybersecurity but are just as likely as larger companies to be at risk for cyber threats.
In fact, many argue SMBs are at a greater risk of cyber threats than larger companies because they are less likely to have a cybersecurity or disaster recovery plan, making them more vulnerable to repeat attacks.
Research from industry experts showed that 67% of companies surveyed in a study were hit by cybersecurity attacks twice within 12 months. Cybersecurity attacks can cost thousands of dollars in fines and damage control and can even put customer trust and company reputation at risk.
The good news is, there are many starting points organizations can take to developing a cybersecurity strategy, and not all of them cost an arm and a leg. For example, hiring a virtual CISO or contracting with a managed service provider can be solid options for helping a small business develop a foundational cybersecurity plan. In 2023, we’ll see more easily accessible cybersecurity solutions for SMBs.
More Stringent Regulations
In 2023, businesses will be focused on preventing sensitive data leaks, with a focus on customer personal identifying information (PII). As more and more companies continue leveraging consumer data, the debate over privacy rages on.
The American Data Privacy and Protection Act is still in the relatively-early stages in Congress, but if passed, could have a major impact on businesses across every industry. In the meantime, states are taking privacy in their own hands, with five states planning to crack down in 2023 on determining what information companies can gather about their customers, and how that information is used and shared.
Conversations about national privacy laws remain top-of-mind in today’s national security context. The U.S. government is focused on preventing American companies from knowingly or unknowingly making customer PII and intellectual property available to foreign governments. Lawmakers are even instituting new cybersecurity standards for all vendors doing business with the Department of Defense – from those providing the DoD with weapons, to those selling the DoD toilet paper.
The standards, called the Cybersecurity Maturity Model, are mandatory compliance tools that were introduced in 2022 and will go into full effect in 2023. It’s more than likely we’ll see more federal security standards go into effect in the coming years, and as they do, more and more companies will turn to managed service providers to help them navigate the regulations.
Better, More Affordable Tools
Despite the reality that bad actors are multiplying every day, there’s great news on the horizon for cybersecurity professionals. The silver lining is that new, more affordable offerings are coming to market quickly.
Companies are now forming strategic partnerships to strengthen security offerings, allowing them to expand to the broader market. This will give them the opportunity to not only serve the companies that can afford high premiums, but also SMBs.
For example, Google Cloud, which is popular among SMBs, just announced its new Chronicle Security Operations Platform, which is now in preview and expected to be available to customers later this quarter.
Google’s Chronicle Security Operations is now even more effective in leveraging its Mandiant and Siemplify acquisitions. With the announcement of Chronicle Security Operations, Google Cloud users will soon have access to better threat detection, forensics and incident response, and penetration testing services. In 2023 we’ll see a boom of other new security companies and service offerings geared towards protecting companies’ most valuable asset – its information – from cybercriminals.
Peter Hoff is a technology industry leader with more than 20 years of experience in the field. Pete brings a wealth of experience to his role as Vice President of Security and Risk at Wursta across the ecommerce, education and financial services industries. Prior to entering the private sector, Pete was a member of the U.S. Air Force, where he was a senior airman focusing on managing technology systems.
