Cybersecurity in small and medium-sized enterprises

03. December 2024, Fabian Thoma

Cybersecurity is not given the priority it needs at SMEs worldwide. At the same time, 70 percent of SMEs know that IT security is important. They see almost-daily reports of cyberattacks, but implementing a cybersecurity strategy is challenging for many SMEs. What should SMEs focus on?

Short & sweet

Cyberattacks are becoming more frequent and more complex, but many SMEs underestimate the risks.
Employee errors or negligence remain a major weakness, making comprehensive training programs necessary.
Many companies lack basic security measures such as up-to-date software, firewalls and strict password guidelines.
Cyber insurance is often underutilized because the requirements exceed the resources of IT specialists at many SMEs.

An increasing number of cyberattacks on organizations of all sizes have raised public awareness of the threats. But most SMEs remain more vulnerable than ever because they lack the resources and expertise needed to implement robust cybersecurity measures. At the same time, the global market for cybersecurity products and services is large and growing. Fortune Business Insights estimates that the global cybersecurity market will reach around $193.73 billion (€174.2 billion) in 2024 and grow to $562.72 billion (€505.72 billion) by 2032. Part of that growth will be driven by SMEs trying to keep up with a growing range of increasingly sophisticated cloud- and AI-based threats.

Despite the market growth, most available solutions are not made for SMEs. The situation is complicated by widely varying cybersecurity requirements, skills and access to resources among SMEs. To better understand and address that variability, it helps to segment the market based on the implementation of cybersecurity measures: limited, semi-mature, highly developed. New market players are seeing opportunities in that segmentation and are offering simplified, integrated and cloud-based security solutions designed and priced specifically for SMEs. MSSPs (Managed Security Service Providers) also are becoming increasingly important partners for SMEs. In addition, IT managers at SMEs are taking action by increasing the use of automation for cybersecurity-related tasks including vulnerability scanning and update management.

Simple solutions for complex problems

Automated solutions in particular must be easy to implement, use and maintain with minimal resources because most SMEs lack the expertise needed to operate increasingly complex security solutions. Many also operate without a clear cybersecurity strategy. According to the World Economic Forum’s 2024 Global Cybersecurity Outlook, while large organizations have significantly increased their cyber resilience, more than twice as many SMEs say their security plans and measures do not meet their own operational requirements. SMEs also are three times more likely to lack the cyber skills needed to improve their security postures. In the U.S., the Cyber Readiness Institute's (CRI) 2024 "The State of Cyber Readiness Among Small and Medium-Sized Businesses" report found that only 17% of SME consider their cybersecurity skills "effective" or "somewhat effective," while 55% view them as "ineffective" or "somewhat ineffective."

At the same time, many SMEs paradoxically maintain a false sense of security. About 30 percent without an IT security strategy believe that they are not at risk and underestimate the potential impact of cyberattacks. Cutting-edge security products for SMEs are essential to counter these misconceptions.

As cyberattacks become more sophisticated, companies of all sizes need to adopt multi-layered security measures:

Implement advanced cybersecurity solutions that go beyond simple antivirus software and use modern AI tools to detect anomalies in IT and OT networks, unusual emails or machine-to-machine communications and other suspicious activity
Take a look at supply chain vulnerabilities because the effects of cyberattacks on customers, partners and suppliers can spread to the companies with whom they do business.
Conduct regular employee training because well over 95 percent of all successful cyberattacks - from the attackers' point of view - begin with a careless click by an employee.

Curbing the greatest weakness

Humans are the weakest link in cybersecurity. Not only is it important to train your own employees properly, but also temporary staff and other employees with access to in-house IT or OT infrastructure:

Take both technological and human factors into account. Identify lapses and weak points using fake attacks to educate employees about the impact of errors, poor judgement or inadequate awareness to help reduce the chances of damage from a real attack.
Ensure that cybersecurity roles and responsibilities are clearly defined and practice incident response plans.
Provide a sufficient budget for cybersecurity and consider taking out cyber insurance to mitigate the costs of downtime and recovery. Be aware that such insurance policies usually place high demands on IT security and staff.

There is significant growth potential in the underserved and fast-growing SME sector. Providers of cybersecurity solutions that are able to adapt their products, pricing and sales strategies to meet the evolving needs of SMEs have a clear advantage. Solutions such as the baramundi Management Suite (bMS) are especially suitable because they are easy to implement and are priced according to company size.
The bMS is a comprehensive solution for IT security and device management with a wide range of functions and intuitive automation features that help increase cybersecurity, including:

Centralized management of desktops, laptops, servers and mobile devices, patch management, software distribution and inventory.
Mobile Device Management (MDM) for configuring and securing smartphone and tablets, plus app deployment and remote wipe capabilities.
Enforcement of policies for password complexity, screen lock, encryption and other areas.
Compliance & Reporting for documenting implementation of appropriate security measures and for meeting audit requirements.
Network access control (NAC) to protect the network against unauthorized devices and users.

Building on your own strength

These four proactive steps make it even easier for SMEs to strengthen their cyber defenses:

Manage infrastructure efficiently: Use endpoint management software to manage devices from a central location to improve IT quality, consistency and productivity. bMS automation makes it possible for small IT departments to handle more tasks in much less time.
Transparency through automatic inventory: Automated recording of hardware and software assets significantly improves network visibility. It provides a solid foundation for simplifying compliance, license management and IT infrastructure planning and optimization.
Update management: Ensuring that all systems have current and fully patched software improves security, system reliability and user productivity by closing security gaps, fixing bugs and adding new features. Outdated software can increase vulnerabilities and lead to system failures and data loss.
Regular audits: Hire external cybersecurity experts to assess and improve your security status.

SMEs that prioritize cybersecurity by implementing comprehensive strategies, investing in appropriate solutions and closing skills gaps can significantly reduce the risks of data breaches, financial loss and reputational damage.

Averting IT risks - no matter when they arise

SMEs are subject to attack by cyber criminals just as much as larger companies. However, due to their limited IT resources, they need to automate cybersecurity measures as much as possible to save time and resources and reduce the risk of human error. Our free white paper explains how to improve your cybersecurity posture.

Learn how to eliminate vulnerabilities effectively with IT automation

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