Skip to content

6 Security Risks That Could Hurt Your Business Finances

How secure is your business? It’s a question worth asking as your business finances could be at risk if there are any security lapses. 

Security risks can be wide and many. They are often talked about in relation to cybersecurity, but there can be physical security lapses too. 

Security Risks That Could Hurt Your Business Finances

In this post, we will consider a number of security risks. If any of them relate to your business, do what you can to alleviate them to protect your business finances

Security Risks in Your Business FinancesRisk #1: Phishing attacks

Phishing attacks occur when the sender (often posing as a trusted contact) encourages the recipient to click on a malicious link or download a suspicious file.

Small businesses are often hurt by these attacks but even the bigger boys in business have fallen prey to phishing attacks. One scammer used a phishing email to steal over $100 million from Google and Facebook, for example. They did this by duping employees with false invoices that were later paid out. 

To protect your business from a phishing attack, you should have a strong email security gateway in place to prevent phishing emails from landing in your employee’s inboxes. Security awareness training for your employees is also advised, as the more knowledgeable they are, the less likely they are to fall prey to any form of phishing scam. 

Related: How to Start a Home Based Business Online (And Be Profitable!)

Risk #2: Ransomware attacks

Ransomware is another common cyber-attack.

Thousands of businesses are hit by these attacks every year and lose money as a consequence. This is because hackers find a way to encrypt company data and make it inaccessible to business owners and their employees.

The attack leaves business owners with a tough choice. They either pay the ransom that the hacker requests or they refuse and risk crippling their business because of the loss of important company data. Check out these business ransomware attacks to understand more about this problem.

Ransomware attacks and other forms of security breach can be prevented via endpoint security tools. These can be purchased online or implemented via the services of an IT company. You should also back up your data to the cloud as this way, should a ransomware attack happen, you would still have access to the data that is needed to run your business. 

cyber risk coverageRisk #3: Malware attacks

Malware attacks encompass a number of cyber threats, including trojans and viruses. These come via links in spam emails, malicious downloads, and connections to infected devices.

Hackers who use malware can access (and steal) company data and cripple the devices that are being used by the business. Should your business fall prey to malware, both your financial information and that pertaining to your employees and customers could be stolen. Bank accounts will be threatened as will the reputation of your business. 

You can protect your business devices with cybersecurity software which incorporates antivirus and firewall protection. Training is again advised as the more knowledgeable you and your employees are, the safer your business will be. There is advice here on protecting your devices from hackers.

Have a read and then consider the services of IT professionals if you feel you need help securing your business. 

Related: 10 Genius Ways to Get More Sales Conversions in Your Online Business!

Risk #4: Unaccounted visitors

Do you know who is coming in and out of your building? If you don’t, there is the risk of people getting inside who shouldn’t be there, such as anybody with the intention of stealing money, company documents, and pieces of important equipment. 

To avoid this problem, you should secure your business with doors that can only be opened via swipe-card access. You should also have a system in place that ensures visitors wear ID cards on their person.

A signing in and a signing out process is advisable too, as you would then have a record of who has been coming into your business premises. 

security threat in the buildingRisk #5: Unsecure business premises

You may be able to spot unwanted visitors during the day but what about at night?

If burglars gain access to your business premises, they could steal money and valuable equipment. They could cause damage to doors and windows too, so this would also put your business out of pocket. Of course, insurance will help, but there is still the risk of downtime when trying to return your business to normal. 

There are lots of ways to protect your business from burglars:

  • You could use metal shutters on your doors and windows as your first form of defense.
  • CCTV cameras and alarm systems would deter burglars from trying to gain entry in the first place, so these are also recommended.
  • Motion-controlled lighting is also a good idea as very few burglars want to be under the glare of a spotlight when trying to gain entry.
  • And you could install stronger locks on the doors inside of your premises too. 

Related: The Pros and Cons of Owning a Small Business

Risk #6: Your employees

We have already discussed the cybersecurity risks that your employees could fall for, but if you take the steps mentioned, these should be mitigated. But what about employees who purposefully try to steal from you?

If money is left lying around or if they have access to your company’s financial information, they could try to boost their earnings unlawfully. Your employees could give away business information to others too, perhaps inadvertently if such info was on their personal devices. We are thinking about entry door or business bank account passwords, for example.

To safeguard your business, you should take the relevant steps:

  • Securing valuables away and locking accounts that your employees aren’t authorized to use, are two things you can do to deter wannabe thieves.
  • Security cameras are also an effective measure.
  • You should also train employees in the inadvertent security risks that they could pose, as the better informed they are, the more diligent they will be. 

What Are Your Security Risks? How Can You Better Safeguard Your Business?

So, how secure is your business? With so many risks to consider, it wouldn’t be a surprise if there were security flaws present. To protect your business and your business finances, risk assess your business and take the necessary steps to amend any potential weak points.

Our suggestions were just the start. For more advice, contact the IT and security professionals in your area and benefit from their support.

Money

AUTHOR Derek

My name is Derek, and I have my Bachelors Degree in Finance from Grand Valley State University. After graduation, I was not able to find a job that fully utilized my degree, but I still had a passion for Finance! So, I decided to focus my passion in the stock market. I studied Cash Flows, Balance Sheets, and Income Statements, put some money into the market and saw a good return on my investment. As satisfying as this was, I still felt that something was missing. I have a passion for Finance, but I also have a passion for people. If you have a willingness to learn, I will continue to teach.

Related posts