Risk Management for European SMEs: What to Do After Your First Security Test

Risk Management for European SMEs: What to Do After Your First Security Test

If you're a small to mid-sized business, family-run company, or startup, cybersecurity might not have been high on your priority list—until now. Maybe you've just had your first security audit or penetration test and are staring at a list of risks, vulnerabilities, and recommendations. It can feel overwhelming. What do you fix first? What's critical? What can wait?

Risk management isn't just for big corporations with dedicated security teams. For businesses like yours, a practical, strategic approach can make the difference between a minor incident and a full-blown crisis.

Understanding Risk: Why It Matters for SMEs

At its core, risk management is about keeping your business running smoothly—even when things go wrong. It's not just about hackers or ransomware but also about protecting your people, operations, and reputation. Cybercriminals often target SMEs because they:

• Lack dedicated IT resources.

• Assume they're "too small" to be hacked.

• Depend heavily on third-party tools that may introduce vulnerabilities.

Additionally, regulations like GDPR and the NIS2 Directive require SMEs to strengthen their security posture or face significant penalties. For example:

• GDPR violations can lead to fines of up to €20 million or 4% of annual revenue.

• The NIS2 Directive (effective 2024) mandates stricter security measures for businesses in critical sectors like healthcare, finance, and energy.

The good news? You don't need an enterprise-sized budget to manage risks effectively.

Step 1: Prioritize Risks from Your Security Test Report

Not all risks are created equal. Start by focusing on high-impact areas:

High-Risk, Easy Fixes:

• Change default passwords immediately.

• Apply missing software patches today.

• Set up backups for critical data this week.

High-Risk, Harder Fixes:

• Implement Multi-Factor Authentication (MFA) to strengthen access controls.

• Train employees to recognize phishing attempts.

• Use secure platforms for sharing sensitive files.

Medium & Low-Risk Items:

• Plan for gradual improvements like encrypting data or reviewing third-party supplier risks.

Example: A small marketing agency discovered during its first audit that employees were sharing client data via unsecured email. By switching to a secure file-sharing tool and conducting basic training on handling sensitive information, they reduced their risk significantly without major expenses.

Step 2: Build a Practical Risk Management Plan

Think of risk management as a health check-up for your business - identify issues, treat urgent problems, and maintain ongoing improvements.

Key Steps:

Identify Your Most Valuable Assets:

• Customer data? Payment systems? Intellectual property?

Understand Risk Sources:

• Internal (e.g., employee mistakes) and external (e.g., supply chain vulnerabilities).

Mitigate Risks:

• Prevent issues with regular updates and clear policies.

• Detects threats using monitoring tools.

• Respond effectively with an incident response plan.

• Recover quickly with backups and continuity planning.

Assign Responsibility:

• Ensure someone in leadership owns security efforts.

• Educate employees—human error accounts for over 90% of breaches.

Step 3: Choose the Right Framework

For SMEs starting out, lightweight frameworks like NIST CSF are ideal because they focus on five simple areas: Identify, Protect, Detect, Respond, Recover. ISO 27001 is more detailed but suitable if you're handling sensitive customer data or aiming for certifications that attract enterprise clients.

If you're unsure which framework fits best, consulting with an expert can help tailor the approach to your specific needs.

Step 4: Affordable Tools for SMEs

You don’t need expensive enterprise solutions to improve cybersecurity. Here are some budget-friendly options:

• Password Managers: Bitwarden or LastPass.

• MFA Tools: Google Authenticator or Yubikey.

• Security Awareness Training: KnowBe4 or free phishing simulators.

• Backup Solutions: Backblaze or Acronis.

• Threat Detection: Microsoft Defender or CrowdStrike.

Example: A family-run retail business adopted Bitwarden for password management and Google Authenticator for MFA after realizing weak passwords were their biggest vulnerability. These simple changes drastically reduced their risk of account takeovers.

Step 5: Address Supply Chain Risks

As part of someone else’s supply chain (e.g., working with larger enterprises), you may receive security requirements from partners or clients. Failing to meet these standards could jeopardize contracts or partnerships.

What You Can Do:

• Regularly assess third-party vendors for potential vulnerabilities.

• Include security clauses in contracts with suppliers.

• Use tools like vendor risk management platforms to streamline evaluations.

Example: A logistics company was asked by a major client to demonstrate compliance with basic cybersecurity standards as part of their contract renewal. By implementing NIST CSF guidelines and documenting their efforts, they retained the client while improving overall security.

Step 6: Get Your Team Onboard

Your employees are your first line of defense—and often your weakest link if untrained. Make security part of your company culture by:

• Conducting quarterly phishing awareness sessions.

• Providing simple checklists during onboarding (e.g., password policies).

• Establishing clear procedures for handling sensitive data.

Tip: Even small steps like encouraging employees to report suspicious emails can significantly reduce risks.

Conclusion: Take Action Today

Risk management isn't about perfection—it's about preparation. Start small:

• Address critical risks immediately.

• Use lightweight frameworks like NIST CSF to guide your efforts.

• Invest in cost-effective tools for your needs.

• Engage employees through training and awareness programs.

By taking these steps now, you'll not only protect your business but also build trust with clients and partners who value security-conscious suppliers.

Ready to Secure Your Business?

Book a free consultation today to create a tailored security roadmap for your SME. Let’s make cybersecurity simple, effective, and affordable—so you can focus on growing your business without unnecessary risks.

Schedule Your Free Consultation Now

Remember, the best time to act on cybersecurity is before a crisis occurs. Safeguard your business, your customers, and your peace of mind by taking proactive steps today. With 51% of small businesses having no cybersecurity measures in place at all, taking action now can put you ahead of the curve and significantly reduce your risk of becoming a victim of cybercrime.

Click here to schedule your consultation.