SEARCH
SMEs lack cyber security maturity
SMEs lack cyber security maturity
While the recent Optus and Medicare breaches have increased consumer awareness of cyber crime, the SME sector has been slower to respond.
According to HLB Mann Judd, the local SME sector lags behind its global peers when it comes to responding to cyber security concerns.
This is partly due to small businesses not being required to report cyber breaches, the firm’s Melbourne partner Kapil Kukreja has said.
Namely in Australia, and under the Mandatory Reporting of Data Breaches regulation, businesses with an annual turnover greater than $3 million must report cyber hacks. However, businesses with a turnover of less than $3 million per year are not required to.
“Given 99.8 per cent of Australian businesses are SMEs, it does create a major disparity in knowing the true extent of cyber crime across the country,” Mr Kukreja said.
“There have been instances where SMEs have been the victim of a cyber security attack and have gone under within six months. Business owners need to be more accountable and ensure their operations are safeguarded against an attack.”
While noting the presence of room for improvement across all sectors, Mr Kukreja said this is particularly true within the SME space.
According to him, all businesses should set aside 1 to 5 per cent of their annual turnover to cyber security.
“This is a guide and it will depend on a range of factors, such as nature of the business and complexity of its systems, but the key for SMEs is they need a budget set aside along with a formal cyber strategy and cyber response plan; it’s about smart spending and it can’t be an afterthought,” he said.
Mr Kukreja recommended the following tips for SMEs in mitigating a cyber breach:
About the author
Subscribe to our Newsletter
We Translate Complicated Financial Jargon Into Easy-To-Understand Information For Australians
Your email address will be shared with nestegg and subject to our Privacy Policy
latest articles
OUR PLATFORMS AND BRANDS
- Accountants Daily
- Accounting Times
- Adviser Innovation
- Australian Aviation
- Cyber Daily
- Defence Connect
- Fintech Business
- HR Leader
- Independent Financial Adviser
- Investment Center
- Investor Daily
- Lawyers Weekly
- Money Management
- Mortgage Business
- Nestegg
- Property Buzz
- Real Estate Business
- Smart Property Investment
- SMSF Adviser
- Space Connect
- Super Review
- The Adviser
- Wellness Daily
- Which Investment Property
- World of Aviation
EVENTS AND SUMMITS
- Accountants Daily 30 Under 30 Awards
- Adviser Innovation Summit
- Australian Accounting Awards
- Australian Aviation Awards
- Australian Broking Awards
- Australian Defence Industry Awards
- Australian Law Awards
- Australian Space Awards
- Australian Space Summit
- Better Business Summit & Awards
- Corporate Counsel Summit & Awards
- Cyber Security Summit & Awards
- Defence Connect Budget Lunch
- Defence Connect DSR Summit
- Fund Manager of the Year Awards
- ifa Excellence Awards
- ifa Future Forum
- Investor Daily ESG Summit
- Lawyers Weekly 30 Under 30 Awards
- Lawyers Weekly Women in Law Forum
- Mortgage Business Awards
- New Broker Academy
- Partner of the Year Awards
- REB Awards
- Reinnovate
- SME Broker Bootcamp
- SMSF Adviser Technical Day
- Super Fund of the Year Awards
- Women in Finance Awards
- Women in Law Awards
- Accountants Daily Podcast Network
- The Adviser Podcast Network
- Australian Aviation Podcast Network
- Defence Connect Podcast Network
- HR Leader Podcast Network
- The ifa Show
- The Lawyers Weekly Show
- Mortgage Business Podcast Network
- REB Podcast Network
- Relative Return
- The Smart Property Investment Show
- Space Connect Podcast
PODCASTS
LEARNING AND EDUCATION
MOMENTUM MARKETS NETWORK
LINKS
STAY CONNECTED
Subscribe to the Adviser Innovation eNewsletter.
