Why is cybersecurity so important?
Why is the importance of IT security in companies increasingly making headlines? In a world where digitalization is advancing unstoppably, especially in the context of the pandemic, companies and institutions have realized that cybersecurity is key. Not only to comply with legislation, but also to maintain the company’s reputation and even its business, which can be compromised by a cyberattack.
In this article, we address the importance of cybersecurity today with a series of data from different studies that support the need to address preventive strategies in companies.
What is cybersecurity in business and why is it so important?
Computer security or cybersecurity in the company is the set of strategies and actions aimed at protecting everything related to the computer infrastructure in an organization. Cybersecurity in the company concerns all the protocols aimed at protecting the organization from the so-called cyber risks.
Today, all large companies and – increasingly – a large number of SMEs and the self-employed are concerned about cybersecurity, which causes exorbitant losses worldwide every year.
In Spain, most companies base their cybersecurity on a reactive strategy, i.e. they act once an attack has occurred. However, for many small and medium-sized companies, a cyberattack can mean the loss of thousands of euros (around 35,000 on average) and can lead to closure. Hence the importance of following a preventive strategy such as that offered by cyber insurance for companies or the most suitable insurance policies for the self-employed and SMEs, which also respond to possible attacks.
Some examples of the importance of cybersecurity in today’s world
Large companies also targeted by these cyber-attacks
In 2021, large companies such as Glovo, MediaMarkt or Phone House suffered cyberattacks that they had to disclose, causing a reputation crisis. According to Deloitte in its report “The State of Cybersecurity in Spain”, which addresses the “post-pandemic” scenario, 94% of Spanish companies suffered at least one serious incident during 2021.
9 out of 10 companies in our country suffered a serious cyberattack in 2021. In fact, 25% of them suffered 2 critical cybersecurity incidents during that year.
Insurance, technology and media, manufacturing and banking among critical sectors
According to the same study, the sectors with the highest average number of incidents are: insurance, TMT (Telecommunications, Media and Technology), Manufacturing, Banking and Public Administration.
Graph extracted from the publication El estado de la ciberseguridad en España (Deloitte).
Administrations are not spared either: the case of the State Public Employment Service (SEPE)
Cybersecurity is not only important for companies, but also for organizations, which often have sensitive data that can be exposed. The culprit in this cyberattack was the Ryuk ransomware, an old acquaintance of companies, which began encrypting the organization’s files.
Why is cybersecurity necessary in the enterprise?
There is still not a strong culture of cybersecurity and its importance is underestimated in most cases, both by individual users and by companies (especially in small and medium-sized companies, the ones we know in Spain as SMEs).
Do you remember the WannaCry ransomware? This data hijacking virus infected 300,000 computers in 150 countries in 2018 and caused losses in the millions, estimated at €3.5 billion.
However, in Spain, companies still approach the issue of cybersecurity in a reactive, rather than preventive, manner. Here are some data extracted from the:
1. Average cost of an attack: more than 100,000 euros.
According to the Google report Current overview of Cybersecurity in Spain. Challenges and opportunities for the public and private sector. The average cost of a cyber-attack is estimated to be around 35,000 euros, so that 60% of European companies that suffer one are forced to close down within 6 months.
However, the truth is that this information is already outdated. The most recent study, released in the summer of 2022, speaks of an average cost in Spain of more than €100,000.
Low percentage of SMEs with basic security protocols.
According to the same study, only 36% of the SMEs surveyed use basic security protocols, such as two-step verification for business email.
3. 40,000 cyber-attacks per day in Spain in 2021
According to the most updated data collected by El Mundo, through a study by Datos101, in 2021 there will be 40,000 cyber-attacks in Spain on average every day, which represents an increase of 125% compared to 2020. The least protected and, therefore, most exposed to cyber risks are users and small and medium-sized companies.
4. Reputational crisis
Some types of cyber-attacks affecting companies, such as theft and leakage, can generate a serious reputation crisis, especially when user data or sensitive company information is exposed. It should be remembered that these attacks account for 50% of the total. Sometimes the economic losses are manageable, but the reputational crisis can cause an insurmountable impact.
Cyber risk insurance: an essential tool for the 21st century company
These are the main reasons why cybersecurity is so important nowadays and why cyber risks have become one of the main concerns of large companies, but also of micro-enterprises or self-employed, who are the most vulnerable.
For this reason, more and more companies are opting for a preventive strategy and the adoption of cyber risk insurance.
PIB Group Iberia offers protection tailored to the needs of each company according to its size and activity. Contact our team and protect what matters most.
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