It’s easy to dismiss cybersecurity as something necessary only for enterprise-level companies, financial institutions, or e-commerce stores. However, the reality is that if you hold any customer or employee information in the digital space – you are at risk for cyber attacks. In fact, according to CNBC, more than half of registered small businesses in the United States suffered a cybersecurity breach at some level between 2018 and 2019.

Cyber attacks are on the rise for businesses. The cost of cyber attacks on these companies goes beyond the initial monetary expense. It is estimated that cybercrime is expected to cost businesses more than $6 trillion worldwide, according to Forbes.

On average, it will cost a small business $200,000 to manage the fallout from a cyberattack, according to CNBC, with 60% of those companies expected to go out of business within six months of being victimized.

With all the news stories in recent years about big organizations and data breaches, we have a general idea of what cyberattacks cost. But the impact goes deeper than that.

Beyond those immediate, top-of-mind costs, several other factors can contribute to the overall impact of a cyberattack. These include insurance premium increases, potential business disruption, possible loss of intellectual property, customer relationships, and contract revenue. These more hidden consequences tend to emerge later in the recovery process and reverberate far longer than the immediate fallout.

While there is no way to predict every possible threat, many companies are developing capabilities that result in real-time threat analysis, detection, and prevention. It begins with a thorough assessment of your current cybersecurity practices and areas of concern. The next step is to pair the best tools with the most effective procedures to create the best defense against cyber-attack, as well as a plan for managing incidents should they occur. Finally, training your team to put this strategy to use, and continually monitoring future risks is the key to successfully mitigating cyber attacks in your business.

Of course, you cannot preempt every threat, but having a smart response plan can play a significant role in minimizing the impact.

The right response depends heavily on industry, on market conditions, social trends, and various other circumstances. In many ways, every business is different – which is why a cybersecurity risk assessment is so vital to successfully mitigating cyber attacks.

Facing up to the challenge of managing cyber risks can help companies take advantage of new technologies, processes, channels, and alliances. These efforts also can lead to supply chain optimization and the ability to operate with confidence in current and new markets.