According to the latest Hiscox Cyber Readiness Report, almost two in five small businesses in the UK suffered a successful cyber-attack in the last year, with each attack costing an average of £26,650.
Globally, cyber incidents cause around 32 hours of operational disruption a year on average.
Cyber-attacks are no longer exceptional events, being viewed more as recurring costs, so businesses must prepare themselves financially for the impact.
How should you prepare your finances in advance of a cyber-attack?
A cyber-attack is slowly and sadly becoming a reality for many SME owners across the UK.
To prepare, business owners should assess the potential financial risk a cyber-attack poses and forecast cash flow to ensure their business can survive one.
It could also be beneficial to value your data assets to estimate the worth of any lost revenue and recovery expenses.
Business owners may also want to keep offline playbooks. These are secure, printed offline copies of critical financial contacts, account numbers and recovery protocols to ensure that your business has key information in the event of a cyber-attack.
Additionally, your business should establish strict double-check procedures for unusual payment requests or changes to supplier details to prevent business email compromise.
You should also factor cyber insurance premiums into your operational risk management to ensure that you are prepared for any eventuality.
What should you do to get your finances back in check after a cyber-attack?
Should the worst-case scenario happen, once you are back on track, the first thing you should do is speak with your accountant.
Your accountant will help you to calculate the exact monetary value of damaged assets, lost revenue and stolen money so that you know exactly where your business stands.
They will then review your financial data and your tax records to establish a baseline for recovery and determine if the business can continue or if restructuring is necessary.
Accountants can also help during complex cyber insurance claims by submitting the required evidence to ensure fair financial assessments of the business interruption costs.
Once you have received any insurance payments, an accountant can advise on the tax implications.
How can we help?
Cyber-attacks are becoming more prevalent for businesses up and down the UK.
That is why it is imperative that you receive advice on how you can best prepare your finances in a worst-case scenario.
Our team of accountants can help you to prepare your business for a cyber-attack and in the event of a cyber-attack, we can help you pick up the financial pieces.
Get in touch with our team for support with preparing your business for a cyber-attack.
Jim Botton – Pleasure Beach (Skegness)
