SME vs Enterprise Data Breaches

Breaches & LeaksCorporate Security

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In the past year, 61% of small and medium enterprises (SMEs) have had at least one cyber incident. Despite this, it’s repeatedly discussed how these organizations assume they are not a target. Throughout this article, we cover four ways that mid-market organizations differ from large enterprises regarding the frequency, impact, and management of data breaches.

1. SMEs are more likely to experience a data breach.

Organizations with less than 1,000 employees are 63% more likely to experience a data breach than larger organizations. While bad actors were formerly inclined to target enterprises, today’s threat actors focus more on the ease of opportunity than the potential dollar value. They recognize that SMEs house precious information and often have fewer defenses and security measures than their enterprise counterparts.

2. Data breaches are more expensive for SMEs (relatively speaking).

A single data breach costs SMEs an average of $108,000. While the dollar value of enterprise breaches is higher at $1.41 million, the damage inflicted on mid-market organizations has more of a relative impact. In fact, 60% of SMEs go out of business entirely within six months of experiencing a breach.

3. The cybersecurity solution space is enterprise-focused.

Many SMEs recognize the importance of a strong security posture. However, the solution provider space of traditional cyber risk management is enterprise-focused, has higher price tags, and serves a target customer with mature security teams. While SMEs are big enough to need these robust technologies, finding talent that can make complex software work properly is expensive and hard to come by. 

4. SMEs outsource their security.

Large enterprises have cybersecurity strategies created and executed by sophisticated security teams with substantial budgets. This gives them the luxury of taking on multiple projects simultaneously. In contrast, SMEs can typically only focus on one new cybersecurity initiative at a time (if they’re lucky). SMEs recognize that today’s threat landscape requires more attention than can be provided in-house and outsource their security to Managed Service Providers (MSPs). This is an opportunity for MSPs to grow their business by helping these organizations identify gaps, decrease risk and demonstrate the return on investment of security initiatives.

Moving Towards a Cyber-Resilient Future

Cybersecurity will become even more relevant for SMEs as they expand their digital footprints to keep up with enterprise competitors. SMEs must make cybersecurity a top priority and take action to lower their vulnerability, steer clear of expensive incidents, uphold their reputation, and continue to grow their business.

Media Sonar Digital Risk Assessments (DRAs) are an easy-to-implement solution for SMEs looking to add an extra layer to their security offerings. We provide a report of identified vulnerabilities, scored risks, and remediation recommendations.

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