The SHA Cyber Security survey found that 42.5percent of businesses do not have adequate anti-cyber-attack procedures in place. It found that around 60percent of SMEs impacted suffered a financial loss of between R50000 and R1million. It's also been reported that up to 60percent of SMEs never recover after a significant cyber-breach.
Many SMEs still don't realise the importance of pro-actively managing their cyber-risks. The SHA Cyber Security survey shows that around 52percent of brokers are still finding it difficult to sell cyber insurance policies to their clients. This indicates that more than half of business owners are still not taking adequate steps to protect their organisations.
Cybercriminals target SMEs that hold valuable business data, such as personal customer or financial information. These small businesses often do not implement the stringent online security measures that large corporates have in place.
Beyond the risk of downtime and loss of income, SMEs that do not properly manage their cyber-risks through insurance and precautionary measures could also face crippling liability claims from clients and company stakeholders that suffer damages as a result of a cyber-breach. Other risks include substantial damage to networks and IT infrastructure as well as significant reputational damage that could severely hamper the future growth of the business.