First Midwest BankFirst Midwest Bank logoArrow DownIcon of an arrow pointing downwardsArrow LeftIcon of an arrow pointing to the leftArrow RightIcon of an arrow pointing to the rightArrow UpIcon of an arrow pointing upwardsBank IconIcon of a bank buildingCheck IconIcon of a bank checkCheckmark IconIcon of a checkmarkCredit-Card IconIcon of a credit-cardFunds IconIcon of hands holding a bag of moneyAlert IconIcon of an exclaimation markIdea IconIcon of a bright light bulbKey IconIcon of a keyLock IconIcon of a padlockMail IconIcon of an envelopeMobile Banking IconIcon of a mobile phone with a dollar sign in a speech bubbleMoney in Home IconIcon of a dollar sign inside of a housePhone IconIcon of a phone handsetPlanning IconIcon of a compassReload IconIcon of two arrows pointing head to tail in a circleSearch IconIcon of a magnifying glassFacebook IconIcon of the Facebook logoLinkedIn IconIcon of the LinkedIn LogoXX Symbol, typically used to close a menu
Lock. Network Security. Wire-Framed Lights Concept. Wide
WE HAVE IDEAS.

Get monthly ideas delivered right to your inbox.

Subscribe for Ideas

October 10, 2024

Why CEOs can’t afford to ignore cybersecurity: The hidden costs of inaction

As a CEO, your priority is to drive growth, protect the brand, and ensure the sustainability of your business. But there’s an invisible threat lurking in the background that could unravel everything you’ve built in an instant: cyberattacks.

If you aren’t treating cybersecurity as a top investment priority, you may be leaving your organization dangerously exposed to risks that could cripple your operations, devastate your bottom line, and erode the trust you’ve earned with your customers.

Cyberattacks aren’t a question of if but when

Consider this: 43% of data breaches come from within organizations, often from trusted employees making innocent mistakes or, worse, acting maliciously. This doesn’t just include external attacks by faceless hackers but also insiders who, knowingly or unknowingly, create vulnerabilities that bad actors can exploit.

If a breach happens, it’s not just the IT department’s problem. It’s your problem. It’s the board’s problem. It’s the kind of issue that sends stock prices plummeting, causes customers to flee, and results in lengthy, expensive legal battles. Just think about it—one small mistake could mean millions in losses, or worse, irreparable damage to your brand.

Cyberattacks are not isolated incidents. In one high-profile case, a single fake press release about a major company caused its stock to tank within hours. It wasn’t the result of sophisticated hacking techniques, but of one weak link in the organization that wasn’t protected.

Now imagine that scenario happening on your watch—how would you explain that the company’s reputation and revenue plummeted because of an oversight in your cybersecurity strategy?

The real costs of a data breach

The average cost of a data breach in 2023 was $4.45 million. However, that number doesn’t tell the whole story. Beyond immediate financial loss, consider the long-term consequences:

Customer Loss: Data breaches lead to a massive loss of customer trust. Your clients want to know their data is safe with you. One breach, and they’ll take their business elsewhere.

Legal and Compliance Fines: Regulatory bodies are cracking down on companies that fail to secure sensitive data. From GDPR penalties to class-action lawsuits, the cost of being unprepared far outweighs the investment in prevention.

Reputation Damage: Once your brand is associated with a security breach, the uphill battle to rebuild that trust begins. The impact on your reputation can last years, and some businesses never fully recover.

Are you truly prepared?

It’s easy to think, “We have antivirus software, we should be fine.” But the reality is, cybersecurity is far more complex than that. Hackers are more sophisticated, and cybercriminals are no longer just targeting large enterprises—they’re coming for anyone with vulnerabilities, big or small.

The reality is that most CEOs don’t know if their organizations are truly prepared for a serious cyberattack until it’s too late. Ask yourself:

How secure are your employees’ login credentials?

  • Are you fully protected against insider threats, not just external ones?
  • How often are you testing your defenses?
  • What’s your response plan when—not if—a breach occurs?

If you’re unsure of the answers, your business is likely at risk.

What to do right now

To prevent becoming another statistic, you must treat cybersecurity as the strategic investment it is. That means taking concrete actions now.

Invest in comprehensive cybersecurity solutions: Gone are the days when a basic firewall and antivirus software were enough. You need multifactor authentication, AI-driven threat detection, and round-the-clock monitoring to stay ahead of the game.

Train your workforce: Your employees are your weakest link. They need regular training to understand the risks of phishing, data breaches, and accidental data leaks. The best cybersecurity defenses are only as strong as the people using them.

Implement a solid incident response plan: When a breach occurs, how quickly you respond can mean the difference between containment and disaster. Make sure you have a robust response and recovery plan in place, and test it regularly.

Upgrade your security posture regularly: Cyber threats evolve. So should your defenses. If your cybersecurity strategy is reactive, you’ve already lost. You need to proactively look for vulnerabilities and address them before hackers do.

The bottom line: Cybersecurity is a business Issue

It is the responsibility of company leaders to make decisions that protect the future of their business. Failing to invest in cybersecurity isn’t just risky—it’s negligent. Cyberattacks are happening every day, and they’re targeting companies in every industry. The longer you wait to act, the more you gamble with your company’s future.

The question you need to ask yourself isn’t whether you can afford to invest in cybersecurity, but how much you stand to lose if you don’t. Don’t wait for the breach that forces your hand. Be proactive, take control, and ensure that when the hackers come knocking, your defenses are too strong for them to break through.

 

This article was from Business and Financial Times and was legally licensed through the DiveMarketplace by Industry Dive. Please direct all licensing questions to legal@industrydive.com.

Subscribe for Insights

Subscribe