7 Steps to Create a Small Business Cybersecurity Plan

Quick look: October is Cybersecurity Awareness Month, a perfect reminder for small businesses to double-check how they’re protecting their sensitive data. Nearly half of all breaches hit small and mid-sized businesses (SMBs), so having a solid cybersecurity plan is essential. The good news? You don’t have to manage it alone. External experts, like a professional employer organization (PEO), can help strengthen your defenses.

Cyberattacks aren’t just a “big business” problem. Whether you’ve got 10 employees or 1,000, you can be a target, and the stakes are high. A single incident can spark disruption to your operations, financial loss, and reputational damage.

In fact, Mastercard surveyed over 5,000 SMBs and found that nearly half have experienced a cyberattack. While 20% of those affected had to close or restructure their business, that same research encouragingly found that 86% have conducted a cybersecurity risk assessment and developed a prevention plan.

This Cybersecurity Awareness Month, we’re highlighting the importance of SMBs staying up to date on best practices, and how a professional employer organization (PEO) makes it easier for these companies to stay protected.

About Cybersecurity Awareness Month

Cybersecurity Awareness Month was launched in 2004 and now dates back over 20 years. According to the Cybersecurity and Infrastructure Security Agency (CISA), this year’s theme, “Building a Cyber Strong America,” aims to “strengthen the country’s infrastructure against cyber threats, ensuring resilience and security.”

As part of its “Shields Up” initiative, CISA has outlined several tactics organizations can follow to prepare for, respond to, and mitigate the impact of cyberattacks:

• Reduce the risk of cyber intrusions by validating remote access, keeping software updated, implementing strong cloud service protocols, and more.
• Quickly detect possible attacks by assessing any unusual network activity and utilizing antivirus/antimalware software.
• Prepare to respond to intrusions by designating, confirming the availability of, and thoroughly training a crisis response team.
• Maximize organizational resilience by testing backup procedures and confirming critical functions remain operable even if the network becomes disrupted.

7 steps to create a cybersecurity plan

Protecting data is essential for businesses of all sizes. But for smaller employers especially, weak data security can harm their reputation and potentially threaten the company’s long-term survival.

SMB leaders can improve their cybersecurity defenses by following these seven steps:

1. Get support from leadership

Cybersecurity starts at the top. Before building a plan, begin with educating company executives and managers about potential risks, costs, and best practices. Encourage leaders to complete training so they can recognize threats, understand response steps, and help reinforce security across their teams.

Having leadership engaged can lead to several positive outcomes:

• Increased cybersecurity awareness and decreased likelihood of an incident, as collaboration spreads knowledge of best practices.
• More innovative solutions due to including a range of perspectives.
• Improved cost management, as this teamwork can lead to higher business efficiency and fewer incidents.

2. Assemble the right team

Most small employers don’t have a full-time Chief Information Officer (CIO) or dedicated cybersecurity department, and that’s okay. Many SMBs leverage a cross-department team, tap into external expertise, or outsource where needed.

What matters most is that the team gets proper training and then extends that training throughout the rest of the company.

3. Assess your risks

Your cybersecurity team’s first project should be a complete risk assessment to understand your business’s vulnerabilities. This includes:

• Identifying what data is used and created by your business
• Understanding how the data is distributed and maintained
• Pinpointing the data security hazards that could affect the organization and/or its customers
• Recognizing any legal or contractual obligations regarding this information

Remember to consider both internal and external risks. 70% of breaches stem from internal human error, such as falling victim to phishing scams.

External risks like network threats, social engineering, and third-party vendors should also be assessed, along with physical security. Limiting who enters your facility, installing video surveillance systems, restricting access to areas containing data or servers, and maintaining access control records for specified period of time can help achieve this.

4. Decide who will complete the assessment

Once you’ve mapped out the assessment, decide whether your internal team or an outside cybersecurity company will handle it.

External data security companies are seasoned in identifying potential vulnerabilities and can offer a different perspective that highlights areas of risk. This can be especially valuable for small businesses whose initiatives are in their infancy. Even if you already have a strategy, regular third-party assessments can keep it sharp.

5. Involve legal counsel

Business leaders should engage legal counsel as they develop their cybersecurity prevention strategies. This not only keeps policies compliant, but attorney-client privilege ensures sensitive discussions stay private. If a breach does occur, legal counsel can also support your company’s incident response and communications.

Ideally, legal counsel should be involved from the beginning and included as part of your incident response team.

6. Stick to timelines

Developing a sound cybersecurity plan takes time, but waiting too long to implement it can leave your organization exposed.

Keep your project on track by establishing a clear timeline, sticking to it, and keeping the scope focused. The sooner your plan is in place, the sooner your organization will be protected.

7. Document everything

The final step in building a cybersecurity plan is to document each step, policy, and procedure. Keeping a clear record makes it easier for employees to act quickly during a crisis and for external partners to assist when needed.

Documentation should include a list of external parties (i.e., insurance carriers, regulators, law enforcement, legal counsel, forensic investigators, public relations firms, and response vendors) so you know exactly who to call in an emergency.

Thorough recordkeeping also enables business leaders to review current policies and spot areas for improvement. The best cybersecurity plan continuously monitors for ways to make enhancements and further decrease potential risks.

Staying protected is a team effort

Businesses of every size handle valuable data that must remain secure. Protecting against breaches safeguards your company’s finances and reputation. That’s why it’s crucial to create, review, and continuously improve your cybersecurity plan.

External expertise can make all the difference, and cybersecurity consultants, legal advisors, and PEOs provide valuable expertise and resources. For example, in addition to simplifying human resources (HR) for SMBs, ExtensisHR offers an Information Protection Plan as part of its Employer Protection Plan. This solution provides support with everything from incident response and compliance monitoring to awareness training and cyber liability insurance. It also helps cover costs related to data breaches, cyber extortion, business interruption, and more.

Combining strong internal efforts with external resources creates a more resilient shield against cyber threats. To learn more, explore ExtensisHR’s risk and compliance services or contact us today.