The role of technology in the success of small businesses continues to grow exponentially in the digital age. Its proper application facilitates efficient operations, augments productivity and expands market reach.
Naturally, technology’s pivotal role creates a reliance that makes small businesses vulnerable to many security threats.
This article will explore how outdated software can be a risk to data security and business operations.
Outdated Software and Systems
Many small businesses often operate on a tight budget. Consequently, decision-makers may see updating software and systems as an unnecessary expense. Unfortunately, using outdated software and systems can expose the business to known security vulnerabilities, as older versions often lack essential updates and patches that may prevent the company from being easily compromised.
Impact on Business Operations
Outdated software is an easy target for even the most inexperienced cyber attackers. Exploiting known vulnerabilities can lead to unauthorized access, data breaches and service disruptions. The entire technology infrastructure of a small business may be held to ransom by a hacker, weakening an organization until vast amounts of money are moved into crypto wallets with limited traceability.
In addition, outdated software and hardware systems are often slow and thus hinder productivity and may limit a business’ ability to innovate. A video editor using a slower computer may take 5 hours to render videos when those same tasks could be accomplished in 15 minutes with the latest technology. I believe these lost hours should be reflected as an opportunity cost or lost sales when corporate executives review the balance sheets at the end of the year.
Keeping Up with Technology
A primary way to eschew the pain of maintaining old technology is by ensuring that all software, operating systems, and applications are up to date with the latest security patches.
This is a fundamental step in enhancing cybersecurity.
Via the constant release of updates and patches, software vendors regularly address identified vulnerabilities and strengthen their products’ security. Keeping your systems up to date as a small business is a simple way to close potential security gaps and reduce the risk of exploitation through cyber attacks.
Where manual oversight may create a bottleneck in the update process, automating wherever possible to streamline the process may be necessary, thus preventing unnecessary backlog. This ensures that critical security patches are applied promptly without relying on employee intervention. Automating the process saves time and mitigates the risks associated with the delayed application of crucial security fixes.
Be Intentional About Technology
Allocating a portion of your annual budget to invest in new and secure technologies is a practical and proactive approach to fortifying your business’ cybersecurity defences. Modern hardware often has enhanced security features and built-in protections against evolving threats. Embracing the most advanced solutions is a great way for companies to significantly reduce their susceptibility to cyber-attacks.
However, small businesses must consider both the cost-effectiveness and long-term benefits of improved productivity and security when evaluating new technology options. Investing in high-quality security software, next-generation firewalls and threat detection systems can provide a strong defence against a wide range of cyber threats.
Upfront costs, as significant as they may seem, should encourage a small business to embrace the long-term savings enjoyed from mitigating risks and increasing efficiency, making it a worthwhile investment.
Learn to Retire Technology
Whilst being able to retain, reuse and repurpose items is an admirable skill in many aspects of life, when it comes to software, it may be detrimental for us to hold on to that philosophy.
Identifying and phasing out unsupported software is inconspicuously crucial for any small business. Unsupported software refers to applications or operating systems that no longer receive security updates or technical support from the vendor. These systems become particularly vulnerable to exploitation as new security flaws are discovered and remain unaddressed.
To avoid leaving essential systems exposed, businesses should conduct regular audits to identify any unsupported software in use. Once this has been achieved, creating a plan to replace or upgrade these outdated systems with newer, supported alternatives is essential to receive timely security updates and protection against emerging threats.
The inability to manage, update and evolve organizational software will inevitably lead to the potential risk of a breach of any data you may hold on your business, clients, employees or other stakeholders.
Data Security and Privacy
To provide better customer experiences, many businesses today collect as much data as possible on their clients. Additionally, the most advanced management solutions require businesses to store sensitive information about employees and business operations. Access to this data could provide unauthorized persons, competitors or otherwise valuable insight into business activities for malicious purposes. Data security and privacy have become critical areas of concern for these small businesses since a breach could easily lead to financial losses and reputational damage.
Impact on Business Financials
Due to a data breach, affected individuals or customers may file lawsuits against businesses for failing to protect their personal information. These lawsuits can lead to substantial legal expenses and, even where the business may not be entirely at fault, could result in settlements or judgements requiring compensation payments to affected parties.
In Ghana, the Data Protection Commission is empowered under the Data Protection Act, 2012 (Act 843) “to protect the privacy of the individual and personal data by regulating the processing of personal information.” In the event of a data breach, a business may be subject to fines and penalties from regulatory authorities for non-compliance with the regulations laid down by local law. Inevitably, this diverts much-needed funds for operational concerns away from the business.
After a data breach, immediate and urgent action is often needed to investigate, contain the damage and restore systems and security. Remediation efforts could be costly, involving hiring cybersecurity experts, investing in better security measures, and notifying affected parties. In moments of distress, the costs for these services often escalate by many orders of magnitude, which can strain the financial resources of the small business.
Damage to Business Reputation
For many small organizations, customer trust is paramount to successful business relationships. A data breach erodes trust as customers may feel their personal information is no longer safe with the company.
A breach may also raise doubts about the business’ commitment to protecting customer data, implying a carelessness that may be extrapolated to colour other business operations. While trust may take many years to build, the resources needed to reclaim it after a catastrophic breach often render a complete recovery impossible.
In addition to the loss of trust from existing customers, the negative publicity that often accompanies a data breach may lead to public scrutiny and criticism that further tarnishes the business’ reputation. The extent of the media coverage may influence notions and perceptions of the company, which may take years to overcome.
In an increasingly competitive market, the media coverage of data breaches and loss of trust can give competitors an advantage. Potential customers may prefer to do business with a competitor they perceive as more secure and trustworthy, leading to a loss of sales and market share.
Recovery and Mitigation
Whilst mitigation and recovery may be difficult, all hope should not be lost if you find yourself in a data breach predicament. A decent strategy involving a few tactics could help alleviate the damage above.
To counter the potential loss of trust, timely and transparent communication about the breach with affected stakeholders is essential. Being open about the extent of the compromise, the actions to remediate it, and the measures implemented to prevent future incidents can help rebuild trust where it has been lost.
Immediately after a breach, businesses should conduct a thorough security assessment to identify vulnerabilities and implement more robust security measures where they are lacking. Regular security audits, penetration testing and staff training, are crucial for enhancing cybersecurity in the continuously advancing and evolving world of technology.
Small businesses must also continuously monitor changes in the regulatory landscape and update their practices to stay compliant with data protection and privacy regulations. This will enable them to keep on the right side of the law and avoid or minimize regulatory penalties and fines in case of a data breach.
Developing a robust public relations strategy can also help manage the potential fallout from a data breach. Proactively addressing media enquiries and leveraging positive aspects of the business may be employed to countermand negative publicity where applicable.
Sages’ Perspective
Borrowing from the wisdom of Benjamin Franklin, I tend to gravitate towards the phrase, “An ounce of prevention is better than a pound of cure.” However, as a true technologist, I remain open to embracing updates that may one day prove this truism wrong.
