Table of contents
- Why cyber security is crucial for SMEs
- Where to start: awareness and risk assessment
- Cyber security checklist for SMEs: what to do
- How long it takes to implement the cyber security checklist
Why cyber security is crucial for SMEs
In recent years, cyber security for SMEs has become a central issue for business owners and managers. Small and medium-sized enterprises often believe they are not interesting targets for hackers, thinking that only large corporations attract cyber attacks.
The reality, however, is very different. According to a report by Clusit, over 43% of cyber attacks in recent years have targeted SMEs. This happens because they are perceived as more vulnerable and less structured in terms of cyber security.
The financial and operational consequences of a cyber attack can be devastating. IBM estimates that the average cost of a data breach for an SME exceeds €150,000, without considering indirect damages such as reputational harm, customer trust erosion, legal sanctions related to data breaches, and the costs of restoring systems.
Protecting your digital assets is not just about avoiding external intrusions but also ensuring business continuity, defending your company’s reputation, and complying with data protection regulations like GDPR. A solid digital security strategy for SMEs is now essential for the survival and growth of any business.
Where to start: awareness and risk assessment
The first step in building a solid cyber security strategy for SMEs is not buying expensive antivirus software or complex firewalls. It’s about developing a full awareness of the real risks your company faces and the vulnerabilities in your digital infrastructure.
There’s no point in investing in advanced technology if you don’t first understand where your weaknesses lie.
Everything starts with a thorough risk assessment. You should begin by conducting an internal analysis and identifying the most critical digital assets of your business. For a small or medium-sized enterprise, these assets typically include:
- Company servers where sensitive client and supplier data are stored
- Databases containing personal information, contracts, financial data
- The corporate Wi-Fi network, often left unprotected or secured with weak passwords
- Mobile devices used by employees, which contain emails, system access credentials, and may be used outside the office
- Business applications such as CRM systems, accounting software, and e-commerce platforms that manage sensitive information
- Cloud storage systems where confidential files, budgets, and customer data are saved
Example
Many SMEs use business software like QuickBooks, Zoho CRM, or Salesforce Essentials to manage invoices, employee information, and customer records. If these systems are not adequately protected or if login credentials are shared without proper security policies, a cyber attack could easily expose sensitive financial and personal information.
Risk assessment also means classifying your data and understanding which information, if compromised, would cause operational, financial, or reputational damage.
Example
If your customer database were leaked, it could result in immediate loss of client trust and legal penalties for failing to ensure the protection of business data.
Another crucial factor is evaluating the level of cyber security awareness among your employees. Studies show that over 80% of cyber attacks exploit human error as an entry point.
Hackers don’t always breach firewalls—they often trick employees through phishing emails, malicious attachments, or fraudulent links.
A common real-world example is an email that appears to come from the company’s accountant or CEO, urgently requesting sensitive documents or access credentials.
Password management is another critical risk area. In many SMEs, it’s still common practice to use the same password for multiple accounts or to store login credentials in unprotected Excel files.
In this scenario, a simple credential stuffing attack (where stolen passwords from previous breaches are reused) could easily compromise the entire network.
The risk assessment process should also involve the company’s leadership. Digital security is not the sole responsibility of the IT department—it’s a shared duty.
Senior management must understand that protecting company data and digital systems is a strategic priority, just like financial management or physical security.
Example
A manufacturing SME using IoT-connected machines risks not only data theft but also production shutdowns in the event of a cyber attack. In such cases, a lack of collaboration between executive management and the IT team can delay incident detection and resolution.
To get started with a concrete and effective risk assessment, SMEs can:
- Use free cyber security checklists provided by institutions like ENISA – European Union Agency for Cyber security
- Request a preliminary audit from cyber security consulting firms
- Conduct internal phishing simulations to test employee reactions to potential attacks
Only by clearly identifying your vulnerabilities and understanding the real risks to your business can you develop an effective, sustainable, and tailored cyber security plan.
Cyber security checklist for SMEs: what to do
Once you have analyzed the risks and identified vulnerabilities, it’s time to take concrete action. A cyber security checklist for SMEs is not just a set of theoretical recommendations—it’s an operational plan that should become part of your company’s daily workflow.
Keep software and systems up to date
The first and simplest rule—yet often overlooked—is to ensure that all software, operating systems, and antivirus programs are regularly updated. Software updates include security patches that fix known vulnerabilities. If left unpatched, these flaws can be exploited by hackers to breach your systems.
A real-world example is the WannaCry ransomware attack in 2017, which affected thousands of businesses worldwide. Many SMEs were victims simply because they were using outdated versions of Windows for which Microsoft had already released a security patch months earlier.
Even everyday tools such as Adobe Reader, Java, or your web browser should be updated frequently, as attackers actively look for outdated software to exploit.
Strong password management and two-factor authentication
Another fundamental measure is implementing effective password management. One of the most common causes of data breaches is the use of weak, predictable, or reused passwords.
Every SME should adopt an internal policy that requires:
- The use of long, complex passwords (at least 12 characters, including upper and lowercase letters, numbers, and symbols)
- Regular password updates, especially for critical systems
- Strict prohibition of credential sharing among employees
- Activation of two-factor authentication (2FA) wherever possible
Example
Many SMEs rely on platforms like Google Workspace or Microsoft 365 to manage emails and documents. Enabling 2FA on these accounts significantly reduces the risk of unauthorized access, even if a password is compromised.
Additionally, using a password manager such as 1Password, LastPass, or Bitwarden helps employees manage and store complex passwords securely without writing them down or reusing them.
Regular data backups and disaster recovery plan
Your business data is one of your most valuable assets. For this reason, setting up a solid backup system is essential.
A recommended practice is the 3-2-1 backup rule:
- Keep 3 copies of your data
- Store the copies on 2 different types of storage media (e.g., local NAS and cloud)
- Keep 1 copy offsite, in a different physical location
Example
A small digital marketing agency managing dozens of client projects should perform daily backups to an on-premise server and to a cloud service like AWS S3. This ensures they can quickly restore operations after a cyber attack, technical failure, or accidental data loss.
In addition, every SME should develop a disaster recovery plan—a documented procedure that outlines exactly what to do and who to contact in case of data loss, ransomware attack, or system failure.
Ongoing employee training
Even the best technology won’t protect your business if your employees are not aware of digital threats. That’s why continuous cyber security training is a crucial element of any checklist.
Every employee, regardless of their role, should learn to:
- Identify phishing emails
- Recognize suspicious attachments or links
- Report unusual network behavior
- Protect company information when working remotely or using personal devices
A common real-world case involves Business Email Compromise (BEC) attacks, where employees receive an email that appears to come from the company CEO or financial manager, urgently requesting a bank transfer. Many SMEs have lost tens of thousands of euros to these scams simply because staff members were unaware of the threat.
To address this, companies can:
- Organize periodic workshops on digital security for SMEs
- Run simulated phishing campaigns
- Share informative materials and quick-reference guides
Implementing essential protection technologies
Investing in technology is another key step in protecting your digital environment. Every SME should deploy basic but effective cyber security tools, such as:
- Properly configured firewalls to control inbound and outbound traffic
- Regularly updated antivirus and anti-malware software
- Network monitoring systems to detect unusual activity in real time
- Data encryption solutions for sensitive information, both in storage and in transit
Example
An SME that handles sensitive customer data—such as a medical clinic—must encrypt both stored and transmitted data to comply with data protection regulations like GDPR.
Drafting a custom cyber security plan
Finally, every SME should formalize its efforts by drafting a tailored cyber security plan. This operational document should clearly define:
- Procedures to follow in the event of a cyber attack
- Roles and responsibilities of all stakeholders
- Internal and external communication protocols during a security incident
- Response times and system recovery procedures
A well-structured plan prevents confusion and panic during emergencies and ensures your team knows exactly what to do.
Example
An e-commerce SME, if targeted by ransomware, should immediately isolate affected servers, notify customers, contact local law enforcement, and activate their disaster recovery plan to restore services as quickly as possible.
How long it takes to implement the cyber security checklist
When it comes to cyber security for SMEs, timing is critical. The speed at which a small or medium-sized business adopts protection measures can determine whether it successfully prevents a security incident or falls victim to a damaging cyber attack.
Many basic interventions can—and should—be implemented immediately. Others require more time and resources but are equally essential.
Actions to implement within the first month
In the first few weeks, SMEs should focus on quick, low-cost actions that can significantly improve their digital security.
Specifically:
- Update all software and devices
All company computers, servers, smartphones, and connected devices should be updated to the latest available versions.
A practical example: an SME using Windows 10 and Android smartphones should ensure that every device has the latest security updates installed and that obsolete systems are replaced. - Define a clear password policy
Establish rules for the creation, complexity, and management of corporate passwords.
For instance, employees should be required to use strong, unique passwords and activate two-factor authentication (2FA) for critical accounts, such as business email or financial systems. - Perform a complete data backup
At least one full copy of all company data should be saved securely, both locally and in the cloud.
A concrete example: a small law firm should schedule daily automated backups of client documents and contracts to a local NAS server and to a cloud platform like Google Drive Business or Dropbox Business. - Launch basic employee cyber security training
Organizing an introductory course on the most common cyber threats, such as phishing or malware, is an immediate and effective step.
For example, hosting a one-hour training session during working hours to teach employees how to recognize suspicious emails and protect their credentials.
Structural measures within the first six months
After securing the basics, SMEs should focus on more structural and strategic measures over the next six months:
- Purchase and configure professional firewalls
Basic firewalls built into modems and routers are not enough. SMEs should invest in dedicated firewall solutions from trusted providers like Fortinet, Cisco, or Sophos. - Implement a network monitoring system
Monitoring tools allow the company to track network activity in real-time and detect unusual behavior.
For example, using software like PRTG Network Monitor to receive alerts when an unknown device connects to the corporate network or when large amounts of data are being transferred unexpectedly. - Draft a customized cyber security plan
This plan should include operational procedures in case of an incident, define roles and responsibilities, and establish emergency communication protocols.
A real-life scenario: an e-commerce SME targeted by a ransomware attack should follow a clear plan to isolate infected servers, notify authorities, inform customers, and initiate its disaster recovery plan.
Annual review and updates
Cyber security is not a one-time effort. Every 12 months, the checklist should be reviewed and updated to adapt to new threats, technological changes, and company growth.
It is recommended to:
- Reassess risks and update the cyber security plan based on new digital assets or business processes
- Organize new employee training sessions, possibly focusing on emerging threats
- Conduct simulated cyber attacks to test the company’s response and readiness
For instance, simulate a phishing attack by sending a fake but realistic email to employees and evaluate how many report it and how many fall for it
When to involve external consultants
If the SME lacks the necessary internal expertise or if the complexity of its IT infrastructure increases, it is highly recommended to involve external cyber security consultants specialized in digital security for SMEs.
Hiring external experts allows companies to:
- Conduct professional technical audits
- Implement advanced security solutions
- Support the company in managing security incidents and regulatory compliance
Although it may seem like an additional cost, engaging cyber security professionals is significantly cheaper than the potential damages caused by a successful cyber attack. For example, a ransomware attack can easily cost an SME over €100,000 in downtime, data recovery, lost business, and reputational damage.
Conclusion: digital security as a strategic Iinvestment
Cyber security should not be seen as a cost but as a strategic investment in your company’s future. Implementing an effective checklist significantly reduces the risk of an attack and ensures operational continuity.
In an increasingly digital market, cyber security for SMEs is also a competitive advantage: a business that guarantees the protection of company data will always be preferred over one that neglects this aspect.
Ignoring cyber threats means exposing your company to risks that could wipe out years of work. On the other hand, adopting a well-structured checklist of cyber security strategies allows you to operate confidently, knowing that your digital assets are protected.
Questions and answers
- Why are SMEs common targets for cybercriminals?
Because they often have weaker defenses and fewer resources to protect themselves compared to large corporations. - What are the main cyber security risks for SMEs?
Data theft, service interruptions, reputational damage, ransomware attacks, and legal penalties. - How much does a cyber attack cost an SME?
On average, an attack can cost over €150,000, excluding long-term losses. - What is a cyber security plan for SMEs?
A structured set of policies, procedures, and technical measures designed to protect digital assets and sensitive data. - How can I know if my SME is at risk?
Through a risk assessment identifying internal vulnerabilities, critical assets, and external threats. - How often should I update my cyber security checklist?
At least once a year or whenever significant changes occur in systems or threat scenarios. - Is cyber security only an IT issue?
No, it requires the involvement of all company levels: management, employees, and suppliers. - Is antivirus software enough to protect my SME?
No, antivirus is just one tool. A complete strategy includes backups, firewalls, monitoring, and employee training. - What can I do immediately to improve cyber security?
Update systems, strengthen password policies, train employees, and establish regular backups. - When should I hire an external cyber security expert?
When internal skills are lacking or after experiencing a security incident.
