The need for robust cybersecurity measures is fairly obvious. Such practices are a must have for protecting sensitive information and intellectual property – but why is cybersecurity important as a strategic business move?
“The public is more aware of the importance of cybersecurity than ever before. So, they expect the companies that they do business with to understand its value.” – Adam Radulovic, CEO of XL.net.
Firstly, 48% of respondents in one survey indicated that they would avoid purchasing from a company that had experienced a cybersecurity issue. That means security breaches can significantly impact your potential revenue.
That’s not the only reason why cybersecurity is an important part of maintaining your company’s competitive advantage in the market. The rest of this article will explore other reasons. We will also show you what you can do to enforce a cybersecurity-forward business strategy.
5 Reasons Why Cybersecurity is Important to Your Business’s Market Position
1. Building Customer Trust
When customers know their financial and personal information is safe with you, they are more likely to remain loyal and engage with your brand. Showing your dedication to protecting customer data could encourage prospects to choose you over a competitor who does not offer the same.
2. Protecting Intellectual Property
Strong security measures protect the unique assets that differentiate your business from others. Less risk of data leaks means less risk of competitors stealing your ideas. If your private data gets out, competitors can use it to make similar products or services. This can erode what makes your business stand out in the market.
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3. Reducing Financial Risks
In 2024, the global average cost of a data breach hit a record high of $4.88 million—a 10% increase compared to last year. By implementing effective security measures, your business can reduce the likelihood and financial impact of such costly incidents.
4. Enhancing Brand Reputation
Proactive cybersecurity protects your brand’s reputation by showing your commitment to securing personal data and company assets. Breaches can harm people’s perception of your brand, while consistent security efforts demonstrate your reliability and responsibility.
5. Securing Partnerships With Other Businesses
Showing a commitment to cybersecurity can attract reputable partners and open new collaboration opportunities. Most businesses are more likely to engage with companies that prioritize cybersecurity, as it reduces their risk of third-party network security vulnerabilities.
Key Tips to Help You Enforce Cybersecurity Standards in Your Business Strategy
Integrate Security Policies Across All Departments
Integrating cybersecurity policies across various departments supports unified security practices, as each team manages data differently. Tailoring policies to meet specific departmental needs helps streamline security protocols and address unique risks.
Here are some examples of unique cybersecurity policies that may specifically fit certain departments.
| Human Resources | Implement multi-factor authentication for accessing employee records and payroll data, with access logs monitored weekly. |
| Finance | Use enhanced encryption for financial transactions and require regular audits on all financial systems to detect anomalies. |
| Marketing | Restrict external social media account access to only secure devices with endpoint detection to prevent unauthorized access. |
| Research and Development | Institute encrypted cloud storage for R&D documents and monitor access to high-value intellectual property files. |
| Operations | Deploy IoT-specific security protocols to secure warehouse and logistics data transmitted over connected devices. |
| Customer Support | Record and monitor customer interactions, enforcing data handling protocols to prevent unauthorized data sharing. |
| Legal | Enforce secure document management with digital rights management on legal documents, restricting access by clearance levels. |
| Sales | Use location-based access controls for client data in CRM systems to prevent unauthorized access from outside sales territories. |
Provide Ongoing Employee Training on Cyber Risks
Employees are the first line of defense against cyber threats. Educating your staff on recognizing phishing attack attempts, using strong passwords, and identifying suspicious activity reduces the risk of accidental security incidents. Frequent training sessions keep employees informed on emerging cyber risks.
Implement Multi-Layered Security Measures
By requiring more than just a password, multi-factor authentication (MFA) significantly reduces unauthorized access. This additional security layer helps secure business-critical information, even if one line of defense is compromised. In fact, Microsoft claims that simply adding MFA can prevent 99.22% of potential breaches.
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Regularly Update & Test Your Security Protocols
Routine updates and testing of security protocols are crucial for identifying and mitigating vulnerabilities. Regular assessments of firewalls, antivirus software, and network configurations allow your business to adapt to new cyber threats.
Collaborate With Third-Party Security Experts
Engaging third-party cybersecurity experts provides specialized insights into potential risks and security improvements. External experts bring fresh perspectives and specialized tools for managing complex security challenges that may be hard to address internally.
| Find an Experienced Cybersecurity Partner in The Midwest | |
| Illinois | Wisconsin |
Protect Your Business From Cyber Threats With XL.net
Collaborating with third-party experts is a great way to enhance your cybersecurity strategy. However, just as potential partners may hesitate to trust you if your security measures are lacking, you should also be cautious about whom you partner with.
XL.net is dedicated to protecting your data. Our reputation for strong cybersecurity even earned us a place on MSSP Alert’s Top 250 list of cybersecurity companies. That means you can count on our experts to provide the security insights that you need.
Talk to us today to make cybersecurity your top priority!