As digital threats become more frequent and sophisticated – and SMBs become more targeted – Aon South Africa’s latest SMB Cyber Risk Report highlights the growing cyberthreats faced by these organisations.
“The report delves into the many facets of cyber risk and what SMBs can do to alleviate many of the resource constraints experienced,” says Zamani Ngidi, business unit manager for M&A and Cyber Solutions at Aon South Africa. “This is particularly challenging given the increasing regulatory and compliance burdens these businesses are faced with. It is critical for SMBs to overcome resource limitations, reduce exposure, and build resilience in today’s evolving digital landscape.”
Ngidi says that SMBs are not immune to the threat of cybercrime:
- 46% of all cyber breaches impact businesses with fewer than 1 000 employees according to Verizon’s 2021 Data Breach Investigations Report.
- One in three small and medium-sized businesses have experienced a cyberattack.
- 81% of SMBs say AI increases the need for additional security.
- Less than one in five SMBs have a cyber insurance policy.
Aon’s report explores several critical areas to help SMBs understand and prepare for cyberthreats:
- Understanding cyber emergencies: The report defines cyber emergencies as events like data breaches, hacking, and malware attacks – each capable of inflicting severe damage to an SMB’s operations, finances, and reputation.
- Navigating cyber legislation: The report also discusses the legal implications of data breaches, especially when personal or financial data is compromised. It examines the relevant South African laws that safeguard consumer rights, promote secure digital transactions, and protect personal information – offering a framework that SMBs must understand and comply with.
- Potential cyber losses for SMBs: The report breaks down the typical financial impacts SMBs face including business interruption, data recovery expenses, and costs related to cyber extortion.
- Protective measures for SMBs: Lastly, the report outlines both proactive cybersecurity solutions and insurance options that can help SMBs mitigate risks and recover more quickly from cyber events.
“By analysing exposures, taking steps to address risk, and establishing a strategy for assembling a claim quickly and accurately businesses can better prepare themselves for the threat of a cyber incident,” says Zamani.