Research Uncovers Public Opinions Regarding Cybersecurity
In a recent study conducted by Coalition, it was revealed that many small businesses have a misguided understanding of cybersecurity risks and preparedness. The study, titled the "Coalition Small Business Cybersecurity Study," highlighted several common misconceptions among small business owners.
One of the main findings was that many small business owners underestimate the likelihood and impact of cyberattacks on their organizations. They often believe that they are too small or insignificant to be targeted. This leads to a general complacency in implementing robust cybersecurity measures.
The study also found that many small businesses have inadequate cybersecurity defenses. They often lack formal policies, employee training, and regular security assessments. Many rely on minimal or outdated security tools and have limited access to expert guidance or insurance options tailored to cyber risks.
Coalition's approach to addressing these issues is through what they call "Active Insurance." This approach integrates continuous risk assessment, active protection, and active response to address the gaps in small businesses' cybersecurity defenses.
The study found that small businesses classified as high-risk experience significantly more incidents and losses. This suggests that better risk awareness and proactive defenses could improve preparedness substantially.
Coalition's cyber insurance offerings are designed to provide enhanced coverage for middle market businesses. They come with increased capacity, free access to Coalition's state-of-the-art cybersecurity capabilities, and are syndicated across many of its existing partners. The offerings are available up to $5 billion in revenue for large enterprises.
However, the study also found that Coalition's cyber insurance policies do not meet the expectations of many business leaders due to excessive jargon, technical questions, and get-out clauses.
Despite the risks, 61% of small businesses believe they're too small to be attractive targets for cyber attacks. On the other hand, 86% of small business leaders expressed concern about cyber threats in the next 12 months.
The study also found that 53% of small businesses spend 10 hours or less on cybersecurity per week, while 63% allocate 10% or less of their total budget to cybersecurity.
The Coalition's study underscores the need for small businesses to invest more in cybersecurity and risk management. The study is available at https://www.coalitioninc.com/blog/small-business-cybersecurity-study-june.
References:
- Rising Cyberattacks and Business Disruptions
- The Misconceptions That Impair Small Businesses' Cybersecurity Preparedness
- The Cost of Cybercrime to Small Businesses
The study showed that many small businesses underestimate the likelihood and impact of cyberattacks, believing they are too small or insignificant to be targeted, leading to a lack of robust cybersecurity measures (cyber risk). Additionally, the study found that small businesses often lack formal policies, employee training, and regular security assessments, relying on minimal or outdated technology for defense (cybersecurity). The study, titled "The Misconceptions That Impair Small Businesses' Cybersecurity Preparedness," emphasizes the need for increased investment in cybersecurity and risk management, especially considering that high-risk small businesses experience more incidents and losses (events).
