Have you ever seen a house without a lock on the front door? Silly, right?

All front doors must have a lock. Some homes even have more than one – plus security cameras, alarm systems, motion sensors, floodlights, and other security solutions. Scrimping on home security increases the chances of a burglary, multiplies your family’s exposure to danger, and can mean fines for violating regulations.. Scrimping on home security increases the chances of a burglary, multiplies your family’s exposure to danger, and can mean fines for violating regulations.

Likewise, trying to “save” money by cutting back on cyber security spending, thinking it’s just another expense, can hurt your business in the long run.

Here are some of the risks by not prioritising cyber security in your budget:

1. Distressful data breaches

With insufficient protection, your business could suffer a data breach. When that happens, affected individuals and organisations can suffer financial loss and stolen identities — and your business could be liable for those.

2. Costly ransomware attacks

After hackers steal some sensitive information from your business, they may ask you to pay a ransom. If you don’t, they can still make money by selling your data on the dark web. It’s not recommended, but many companies do pay the ransom.

3. Prolonged business interruption

A cyber-attack can affect your online transactions and digital processes. Until your system runs normally again, every minute of disruption will cost you some. Downtime can also result in lost opportunities. Without a data backup or a recovery plan, your downtime will be longer, your costs will be higher, and potential business will be flying out the window.

4. Painful penalties and regulatory fines

Australian regulations impose fines on businesses if a cyber-attack happens due to non-implementation of certain cyber security measures. Remember, Medibank was hit with a $250 million penalty after a hacking incident.

5. Competitors gaining an edge over you

The stronger your cyber security, the more competitive advantage you have. On the other hand, a weaker cyber security posture than your competitors can open the door for them to attract more customers or even “steal” your customers.

6. Less productive, worried employees

Cyber vulnerabilities can cause low morale among employees, who might worry about their personal data, the future of the company, and the value of their work. These can lead to lower productivity, disengagement, feelings of resentment, and increased employee turnover.

7. Wounded business reputation

Existing and potential customers will feel unsafe doing business with you if your business lacks security. Inside Small Business cited a survey saying that “Australian consumers are less trusting of businesses that have been hacked than they are of their global counterparts.”

Now, how can you avoid those consequences from happening?

Comparing Cyber Security Services to Insurance

In some ways, a robust cyber security strategy is like insurance:

Where they differ is, cyber security solutions are your proactive measure to help prevent an incident altogether. While insurance can only soften the financial impact if a breach or cyber-attack was to occur.

Ultimately, they work better together, and you must set aside a budget and stop cutting back on security.

Consider Investing in Cyber Security Services

You wish you will never have to hear your home alarm system go off, but you invest in it anyway – you want to be ready just in case an intruder tries to break into your house.

Nobody likes the thought of being in a car crash or in a fire. We prepare for them anyway because protecting ourselves and the people we care about is the right thing to do.

Nobody in Melbourne or elsewhere likes thinking about becoming a cybercrime victim. Everyone hopes a cyber-attack does not happen to their business, but hoping so has never stopped hackers. Investing in cyber security is your best bet to prepare your defences against all kinds of cyber threats.

In short, prevention is always better than a cure.

Don’t leave your business’s future to chance

Not investing in cyber security is like leaving your business safety to chance. Just as you will do everything to protect yourself, your family, and your possessions, investing in cyber security is a must in our highly digital world today. If you want to know where to start and learn more about our cyber security solutions in Melbourne, contact a Lucid advisor today.