What’s the Importance of Network Security to Small Businesses?

Many small business owners ask, “what’s the importance of network security to a small or medium sized business?” They may wonder whether this topic applies to businesses that don’t have sophisticated networks to manage.

We believe that network security is something that is important for businesses of every size. Two reasons are the increasing reliance of businesses on their networks and the increasing complexity of networks in an environment where more devices are connected to them.

These days, even small businesses have sophisticated network requirements, with multiple areas of your network that may be vulnerable to cyber-attack or other disruptions. Businesses may be running a simple wired network, but more often even a small business has a network that is segmented into local area networks that may include a network for guests, a wi-fi network, maybe even a local area network or LAN for devices such as environmental controls or access systems, or even wi-fi enabled coffee makers, that are connected to the Internet of Things (IOT) so that they can transmit data over the internet.

Challenges to your network security don’t end there either. Your employees may be using their own mobile devices, or using company-issued devices;security of these devices must be managed to ensure they don’t present a threat to network security.

Just as networks are more complex, so are the efforts of hackers and cyber-criminals to compromise them. And unfortunately, if they succeed, they could compromise your entire business. As more and more business processes take on an online component, whether it’s communicating via email or using a Voice over IP phone system such as Skype, the reliability of your network will become a determining factor of business success. Customers simply expect to be able to contact you when necessary and a downed network will only be tolerated for a short time, if at all.

In addition to business disruptions, the cost of data breaches associated with poor network security is getting higher every year. The Ponemon Institute recently reported that the cost of the average data breach was $211 per record, the highest figure ever recorded. 

The total cost of a breach encompassing all lost records exceeded $7M million dollars in 2016. For many small businesses that suffer such a costly breach, the damage done to the business is not recoverable. According to the same report, more than 60% of small businesses that suffer a data breach are forced out of business within 6 months, unable to recover the damage done to their finances and customer relationships.

Whether large or small, the importance of network security cannot be underestimated. Businesses of all sizes count on being able to access a reliable network to do business, whether it’s through websites, email, cloud applications or other web or mobile based platforms.That means that network security is a critical consideration for every business owner.

Yet, even as businesses rely more on their networks, network security failures can place them at greater risk than ever before. Even small businesses have websites and may be doing some aspects of their business online, such as running an e-Commerce site or running applications in the cloud. More businesses are using wi-fi and mobile devices as well – these may make your business more vulnerable to attack if not managed appropriately.

Plus, every business faces physical risks that may take your network offline just when you need it most. Fire, flood, theft, malware or even insider threats posed by a disgruntled employee can put your business at risk, even if your network security practices are generally good. For this reason, the importance of network security isn’t just about the hardware or software you use to protect against threats to your network, it’s also about having a plan in case your first lines of defense should fail. Backup planning and disaster recovery are an important part of network security that will allow your business to remain online even when security threats strike.

For businesses of any size, particularly those in vulnerable industries where you may be handling customer payment information or sensitive data about your clients, ensuring network security is of paramount importance to customer satisfaction. The long term health of your business may depend upon it.