Cyber Security: The Essential Investment Your Business Can't Afford to Skip

It's time to talk about something crucial for businesses, but often overlooked - cyber security. There's talk of it everywhere: reports, articles, news headlines, but the things we see are usually talking about huge incidents where big companies have been breached.

This leads to a lot of complacency by smaller businesses about the effects of cyber incidents on their businesses, or even the belief that they won't be affected at all. In today's digital world, cyber security isn't just a nice-to-have; it's a must-have. And if you're running a small or medium-sized business (SMB), the stakes are even higher.

According to the Cyber Security Breaches Survey 2025 by the UK Government, a whopping 43% of UK businesses experienced a cyber breach in 2024. That's nearly half of all businesses! This statistic alone should make you sit up and take notice. So let's dive deeper into why cybersecurity is so important and what you can do to protect your business.

The risks of inadequate cyber security

Imagine this: your business gets hit by a cyber attack. The financial losses can be catastrophic; not to mention the operational disruptions and the damage to your reputation. The survey highlights that businesses without adequate cyber security measures are at a significantly higher risk of falling victim to cyber attacks. Phishing and ransomware are still the dominant threats, with ransomware incidents alone costing UK businesses millions of pounds annually.

Protecting devices and staff

Cyber security isn't just about protecting your devices; it's also about safeguarding your people. Tools like security awareness training are crucial in educating employees about the latest threats and how to avoid them. This training can significantly reduce the risk of human error, which is often a major factor in successful cyber attacks.

According to the survey, 84% of businesses reported phishing as the most common type of cyber attack. This highlights the importance of training staff to recognise and respond to phishing attempts. It's also important to avoid a culture of fear of doing wrong. If your staff are afraid of the consequences of reporting a potential phishing incident they've fallen prey to, you've less chance of catching it early.

Additionally, implementing strong password policies and using multi-factor authentication (MFA) can further protect your business from unauthorised access.

It's also essential to ensure that all devices, whether they're company-issued or personal, are secure. This includes installing antivirus and endpoint detection & response (EDR) software, enabling firewalls, and keeping all software up to date with the latest security patches. Regular vulnerability scanning can help identify and address potential security weaknesses before they can be exploited by bad actors.

Key cyber security measures

To build a robust cyber security framework, SMBs should consider implementing the following key measures:

Endpoint/Managed Detection and Response (EDR/MDR)

These solutions provide continuous monitoring and response to advanced threats, ensuring that suspicious activity is quickly identified and mitigated. Regular antivirus software relies on a signature database to be updated, but if the signature isn't in it, the software won't stop malicious software. EDR/MDR uses machine learning to detect anomalous activity in a file and alerts and acts based on that.

Security Information and Event Management (SIEM)

SIEM systems collect and analyse security data from across your organisation, providing real-time insights and alerts to potential threats.

Patching

Regularly updating software and systems to fix vulnerabilities is essential in preventing exploits by cyber criminals.

SaaS Backup

Make sure that all critical data is backed up in a secure, off-site location. This help businesses recover quickly in the event of a cyber attack. Many businesses assume that if their data is in the Microsoft Cloud, it's automatically backed up - this is incorrect. Microsoft operates on a shared responsibility model, where data backup remains the responsibility of the business storing the data.

Vulnerability Management

Regular scans to identify and address security weaknesses can prevent potential breaches.

Password Management

Implement strong password policies and use password management tools to protect against unauthorised access. Staff using post-it notes or similarly structured passwords is a prime target for cyber attackers.

Other essential cyber security areas

Beyond the basics, there are other critical areas to consider:

Network Security

Protect your network from intrusions with firewalls, intrusion detection systems, and secure Wi-Fi configurations.

Data Encryption

Encrypt sensitive data both at rest and in transit to prevent unauthorised access.

Incident Response Planning

Have a plan in place to respond quickly and effectively to a cyber incident can minimise damage and recovery time.

Third-Party Risk Management

Ensure that your suppliers and partners also adhere to strong cyber security practices to prevent supply chain attacks.

Cyber Essentials framework

One of the most effective ways to protect your business is by adhering to the Cyber Essentials framework. This government-backed scheme helps organisations of all sizes protect themselves against the most common cyber threats. According to the Cyber Breaches Survey 2025, businesses that align with the Cyber Essentials framework are significantly less likely to experience a breach. In fact, 75% of businesses that implemented Cyber Essentials reported a reduction in cyber incidents. Despite this, only 3% of businesses are Cyber Essentials certified, giving you a great opportunity to set yourself apart.

The Cyber Essentials framework focuses on five key areas:

1. Secure Configuration
   Ensuring that systems are configured securely to reduce vulnerabilities.
2. Boundary Firewalls and Internet Gateways
   Implementing firewalls to protect against unauthorised access.
3. Access Control
   Restricting access to data and services to authorised users only.
4. Malware Protection
   Using anti-malware software to protect against malicious software.
5. Patch Management
   Keeping software up to date with the latest security patches.

By achieving Cyber Essentials certification, you can demonstrate your commitment to cyber security, which can be a significant advantage when bidding for government contracts or working with other security-conscious organisations. Additionally, certification can lead to reduced cyber insurance premiums, providing even more financial benefits!

Cyber insurance policies

Cyber insurance is becoming an essential part of a comprehensive risk management strategy for businesses. These policies provide financial protection against the costs associated with cyber incidents, such as data breaches, ransomware attacks, and other cyber threats. However, to qualify for cyber insurance, businesses must meet certain cyber security requirements.

Insurance providers often require businesses to implement specific security measures to be eligible for coverage. These typically include:

• Regular security assessments
  Conducting regular security assessments to identify and address vulnerabilities.
• Security awareness training
  Ensuring that employees are trained to recognise and respond to cyber threats.
• Multi-factor authentication (MFA)
  Implementing MFA to add an extra layer of security to your staff's accounts.
• Endpoint detection and response (EDR)
  Using EDR solutions to monitor and respond to threats on endpoints.
• Incident response plan
  Having a documented plan in place to respond to cyber incidents.

Meeting these requirements not only helps businesses qualify for cyber insurance, but also significantly reduces the risk of a successful cyber attack. Businesses that implement these measures report fewer cyber incidents and are better prepared to respond to attacks.

The ROI of cyber security

Investing in cyber security is an investment that pays for itself in dividends. The cost of implementing these measures is far outweighed by the potential losses from a cyber breach. A report from the University of Salford notes that of the 43% of SMBs that fell victim to a cyber attack, 60% of them go out of businesses within six months of the incident.