Security Investment in Small Business and Decision-Making Process of Risk Management

Security Risk Management
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Security Risk Management
Effective Results of a Security Investment for Small Business and How It Compares to Large Corporations
The digitization of businesses presents diverse opportunities and risks that require all firms to invest in appropriate security measures irrespective of their size. Lloyd (2020) reveals the fundamental nature of cyber security for SMEs because of the increasing internal and external threats that could trigger data breaches, operation disruption, or prompt expensive regulatory fines. Ursillo and Arnold (2019) also acknowledge that large corporations and SMEs require appropriate security investments, with the variation occurring in the complexity and size of the financing. This consideration is critical because it facilitates uninterrupted innovations and protects sensitive business and customer data.
Integrating an appropriate security program in an SME enables the firm to focus on innovations, leading to revenue generation and growth. Failure to implement these initiatives derails progress due to the varied cyber-related attacks. For instance, Lloyd (2020) notes that 71% of senior management interviewed in a Cisco study confessed that they derailed in the innovation niche due to unending concerns about cyber security. Such worries weaken a firm’s productivity, demonstrating the need for security investment. In this context, small and mega-corporations should invest in security approaches to consumer needs. Thus, while the former will consider adequate but less complex methods, the latter uses sophisticated measures. These approaches ensure each enterprise has adequate protection from threats to benefit from business tranquility and spur innovations.
A robust security investment guarantees the protection of sensitive business and customer data. Ursillo and Arnold (2019) emphasize that no business is exempt from data-related breaches. The authors indicate that prioritizing updated and advanced firewalls, anti-phishing and anti-spam software, and malware protection averts potential data breaches. Lloyd (2020) supports this argument by indicating that such strategies enabled businesses to retain their customers and maintain their reputations. The only difference between SMEs and large corporations in this aspect is the level of investment, with the latter investing more resources and expertise because of the large data they handle. However, they all benefit from safety against data breaches when they invest in security.
For SMEs to strategically position themselves as secure institutions, they must borrow critical concepts employed by public/private sectors and the government because of the protection they promote. For instance, Lloyd (2020) highlights the need to embrace a culture of cyber readiness through long-term and sustained investment in the security realm. Such an aspect constitutes integrating IT policies and procedures, policies for system use, and routine hardware and software maintenance to remain updated with emerging security features. These strategies are commonplace in government facilities due to recognizing the ever-changing nature of cyber-related threats. Thus, emulating such approaches will keep the SMEs’ security optimum.
Investing in security enables small businesses to protect themselves from data breaches and maintain uninterrupted innovations. Although the level of investment is comparatively smaller than that of the larger organizations, these effective results are similar. Thus, all establishment requires proper security investment initiatives to combat existing and emerging cyber security threats. They should also embrace government-related concepts such as a culture of security readiness and implementation of IT-related policies. Such measures guarantee optimum security against internal and external threats.
Should External Stakeholders Been Involved in the Decision-Making Process of Risk Management Plans
Risk management plans enable organizations to chart appropriate techniques for overcoming recurrence and maintaining stability. As a result, the executives should involve diverse stakeholders to ensure that the decision-making process is comprehensive and considerate of the diverse needs of various players. According to Ndlela (2019), before engaging the various individuals, the leadership should conduct an appropriate stakeholder mapping to determine the most suitable ones to involve in such a sensitive process. Such an approach is beneficial because incorporating the inputs of all players, including external ones, facilitates an improved understanding of the risk and builds credibility and trust while ensuring that the inputs of external stakeholders are within their responsibilities.
Understanding the complexity of risk requires collaboration between the various interested parties within an institution. Ndlela (2019) indicates that the management should map the diverse players and incorporate internal and external stakeholders in this process to analyze and determine intervention strategies. The author indicates that individuals such as customers, external investors, and other players provide an “outside-in” perspective of risk, enabling the management to understand the severity and complexity of a risk (Ndlela, 2019). Such a process guides the decisi...