Many small businesses in India underestimate cyber risks and downplay the damage that could be incurred: a mindset that needs correction
Many small business owners in India believe that cybersecurity is just an added expense — something only large corporations need to worry about.
Others assume that their company is too small to be a target for cybercriminals, or that the losses from an attack are manageable. But is that really the case?
With cyber threats evolving rapidly, even the smallest businesses are at risk of data breaches, financial losses, and reputational damage. Ignoring cybersecurity could mean the difference between long-term success and sudden collapse.
In an interview with CybersecAsia.net, Srijan Nandi, co-founder and technical director, NATIVEDEFENCE shared about the ground situation in India’s small business landscape.
CybersecAsia: How can investing in cybersecurity help India’s small businesses reduce long-term costs and avoid the financial and legal consequences of data breaches or non-compliance?
Srijan Nandi (SJ): Investing in cybersecurity is crucial for small businesses (in India and elsewhere) to minimize long-term costs and mitigate the impact of data breaches and cyberattacks.
By implementing robust security measures, small businesses can prevent unauthorized access to sensitive data, reducing the likelihood of financial loss and legal liabilities. Cybersecurity measures such as firewalls, encryption, regular software updates and continuous monitoring can protect against malware, phishing attacks, and other threats. This proactive approach helps small businesses safeguard customer information, maintain their reputation, and avoid the costly consequences of data breaches, including legal fees, customer compensation, and lost business opportunities.
Moreover, investing in cybersecurity enables small businesses to quickly recover from any security incidents, minimizing downtime and ensuring business continuity. This is crucial for small businesses to avoid legal and regulatory pitfalls associated with data breaches and non-compliance:
- By implementing Security Information and Event Management systems (SIEM), small businesses can monitor and detect security incidents in real-time, enabling prompt response and potentially reducing legal liabilities.
- Establishing a Security Operations Center (SOC) allows for centralized security management, ensuring compliance with industry regulations and data protection laws. This proactive approach helps small businesses avoid financial penalties, legal disputes, and damage to their reputation, which can be significant advantages in highly regulated industries.
CybersecAsia: In what ways does a proactive cybersecurity strategy enhance customer trust and provide small businesses with a competitive edge in the market?
SJ: A proactive cybersecurity strategy is essential for small businesses to build and maintain customer trust, which can directly impact their success and growth. By implementing Security Information and Event Management systems and establishing a Security Operations Center, small businesses in India can demonstrate their commitment to protecting customer data.
These measures enable real-time monitoring and analyses of security events, allowing for swift incident response. Customers are more likely to trust firms that prioritize data security, knowing their personal information is safe. As a result, small businesses with robust cybersecurity practices may attract and retain more clients, leading to increased business opportunities and a competitive edge in the market.
Also, strong cybersecurity practices are vital for small businesses to protect their reputation by safeguarding customer data and preventing security breaches. This builds trust among clients and potential customers, and distinguishes the business as a reliable and secure choice in the market.
CybersecAsia: How does the return on investment of cybersecurity compare to the potential financial impact of a cyberattack on a small business?
SJ: The return on investment of implementing robust cybersecurity measures, such as SIEM and SOC, can be significant for small businesses. While the initial costs of setting up these systems might seem high, the potential financial losses from a successful cyberattack can be devastating. A single data breach can lead to substantial expenses, including legal fees, regulatory fines, customer compensation, and lost business due to reputational damage. By investing in cybersecurity, small businesses can avoid or mitigate these costs, ensuring business continuity and potentially saving them from financial ruin in the long run.
CybersecAsia: What would you say to small business owners who believe cybersecurity is too expensive or unnecessary for their operations? How can they see it as a necessary investment for growth and stability?
SJ: Investing in cybersecurity is essential for small business owners to protect their assets and ensure long-term growth and stability.
While it may initially be relatively costly, the financial and reputational damage from a single cyberattack can be far more devastating.
Cybersecurity measures provide data protection, customer trust, and compliance with regulations, all of which are vital for business continuity.
Viewing cybersecurity as a strategic investment rather than an expense can help small businesses stay competitive, mitigate risks, and create a secure foundation for future expansion.
CybersecAsia thanks Srijan Nandi for sharing his insights on India’s cybersecurity landscape.
