Employees now primary technology risk for SMEs

Broadband explosion is having a major effect on the behaviour of UK SMEs but large numbers failing to manage the risks

A new report from insurer NIG has found that the UK’s broadband explosion is having a major effect on the behaviour of the country’s small to medium sized enterprises (SMEs) but large numbers are failing to manage the risks this new reliance on technology creates.

 

According to the study , ‘Connecting to the future’, by SME insurer NIG, over two thirds of SMEs are now using broadband and over half would find the loss of the service disruptive.

 

The report raises concerns over many SMEs’ ability to manage their systems and their growing dependence on technology. It shows that SMEs are using more IT hardware but invest relatively little in security. A third lack IT support and three quarters have no disaster recovery plan for their data. A quarter of broadband using SMEs pay for cheaper consumer-level broadband packages rather than more robust and higher priced business packages.

 

A third of SMEs have no specialist IT support or no support at all and that a quarter of SMEs are using consumer-level broadband services rather than business services.

Three quarters have no disaster recovery plan for their data; and most have never tested their ability to perform a system rebuild from a back-up.

 

The report also focuses on the IT insurance needs of SMEs. According to the authors, a clear gap has developed between the cover that insurers are able to provide and the types of IT-related risks to which SMEs are most vulnerable.

 

The study predicts that the creation of monitoring software that an insurer can download onto a policyholder’s computers and servers will be a pivotal moment in the development of more comprehensive insurance cover for SMEs’ IT systems and data.

 



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