This encompasses safeguarding data, protecting information, securing devices, ensuring the integrity of financial transactions, fortifying operating systems, and bolstering network security.

Startups, known for their innovative ideas and creative problem-solving, have undergone a significant shift in their work culture. The pandemic has ushered in a new era of remote work and shared workspaces. Unfortunately, cyber security often took a backseat for startups amidst their focus on developing solutions and providing services.

A well-implemented cyber security strategy not only helps prevent incidents, but also enables organisations to respond effectively should a breach occur. Considering the reliance on technology to drive value, cyber security plays a pivotal role in safeguarding organisations from cyber-attacks. Hackers capitalise on the increasing digitisation of companies, targeting sensitive information that serves as a valuable asset, such as intellectual capital.

According to the UK Department for Science, Innovation and Technology, the cost of a data breach is increasing:

• Companies that violated, there was a 10% increase in costs in two years.
• Overall, 43% of companies breaches or attacks in the last 12 months, which is higher for Small-medium-sized companies, including startups (59%) and large companies (69%).
• Alarmingly, only 14% of these startups have the necessary measures in place to adequately protect themselves.
• Over the past 12 months, each company has cost an average of £1,100, regardless of size. This amount was approximately £4,960 for medium-sized and large companies and up to £1.1 million for larger companies. 

Hackers often have two primary motivations for targeting startups. Firstly, startups often possess valuable data, including personal information such as credentials, emails, and credit card details. This data is highly sought after by hackers, who can easily exploit it for their gain. Secondly, startups are particularly vulnerable to cyber attacks due to a shortage of IT and cyber security resources.

Startups face challenges defending their infrastructure due to their small teams, limited resources, and time constraints. Unlike larger companies, startups often lack the capacity to hire dedicated cyber security teams or leaders and invest in robust cyber security tools. Their focus tends to be on surviving and recovering from attacks to ensure the continuity of their business operations.

It's crucial to assess whether the budget at hand can adequately guarantee the security, confidentiality, and availability of data, which often represents the most prized asset of a fledgling company. However, there is no magical formula or definitive figure to determine the exact budget required for a foolproof data security plan.

In reality, there are no plans or environments that can be deemed completely safe. The adequacy of the budget will hinge upon several factors and the unique perspective of each business and company. Estimates continually evolve as cybercriminals grow more sophisticated and resilient, targeting multiple industries.

Creating a data security plan consistent with the current venture moment

To create a data security plan that aligns with the current needs of a startup, conducting a comprehensive assessment of the business is crucial. This assessment should encompass identifying potential threats, vulnerabilities, and the types of data being processed within the company. From there, it becomes imperative to establish an information security programme built upon three key pillars:

Governance: To ensure the effective implementation and management of information security policies, contracts, and practices, it is important to establish a framework of leadership and responsibility. This involves defining clear roles and responsibilities, monitoring performance, and regularly reviewing and updating procedures. Additionally, employing visual design techniques can aid in presenting information related to information security in a way that enhances readability and comprehension.

Technology: Implement a range of tools and systems, including firewalls, intrusion detection systems, and encryption, among others, to safeguard information and enhance its protection.

Culture: Implement a range of tools and systems, including firewalls, intrusion detection systems, and encryption, among others, to safeguard information and enhance its protection.

How to build – step by step – cyber security management

To build effective cyber security management, there are different models available on the market. However, it is possible to establish a plan based on fundamental pillars such as prevention, defence, incident response, and architecture. As the company matures, these pillars evolve.

Initial stage: It is recommended to invest, on average, 3% to 5% of the IT budget:

Perform hacking tests to assess security maturity, protect electronic devices and servers, back up and ensure data availability, protect identities, and implement two-factor authentication, and provide training to employees.

Essential stage: On average, it is recommended to invest 6% to 10% of the IT budget: 

At this stage, it is essential to protect applications posted on the Internet, implement an incident response plan, perform asset monitoring, control access and identity verification, encrypt data and mobile devices, and train employees on incident response plans.

Mature stage: An average investment of 15% of the IT budget is recommended: 

At this point, it is crucial to have an organisational structure for the security team and well-defined governance and processes. It is essential to evaluate and select integrators and partner companies, monitor real-time data, and have a Security Operations Centre (Security Operations Centre).

If you have a data breach, how do you act on a contingency plan for that ‘loss’?

In the event of a data breach, it is crucial to act swiftly to mitigate damage and safeguard sensitive information. It is advisable to follow an established contingency plan, which should include the following steps:

Identify the breach: Regularly monitor security activities and detection systems to identify any signs of the data breach.

Isolate the breach: As soon as you identify the violation, immediately isolate the affected areas. Disconnect compromised systems or servers from the network to prevent further damage or access to other sensitive data.

Form an incident response team: Set up a team with experts in information security, IT, communication, and related areas. They will be responsible for investigating the breach, curbing the situation, communicating with stakeholders, and conducting a forensic analysis.

Assess the impact: Determine the extent of the breach and the type of data compromised. Identify the possible consequences for the privacy of affected persons, regulatory compliance, company reputation, and other relevant areas.

Notify interested parties: As required by applicable data protection laws, notify affected interested parties, such as customers, employees, or business partners. Provide clear information about the breach, the data involved, the measures taken to remedy the situation and recommendations for additional protection.

Mitigate damage: Take measures to minimise the damage caused by the violation. This can include resetting passwords, strengthening system security, implementing two-factor authentication, monitoring suspicious activities, and providing additional support to breach victims.

Conduct a forensic investigation: Hiring forensics experts to investigate the source of the violation, identify the vulnerabilities exploited and collect evidence for possible legal actions.

Improve security: Analyse the security flaws that led to the breach and make improvements to prevent future incidents. This may involve the implementation of stricter security policies, staff training, system upgrades, and the use of advanced security technologies.

Proactively communicate: Keep stakeholders informed about the steps taken to resolve the security incident. This will help build trust and transparency with affected people.

Evaluate and learn: Conduct a post-incident analysis to assess the performance of the contingency plan. Identify areas that can be improved and adjust security measures as needed.

Cyber security is paramount for startups as it establishes a strong foundation for organising, handling, and safeguarding client data, thereby protecting the company's reputation for safety and reliability. While its monetary value may be challenging to quantify, the significance of cyber security in ensuring a solid business framework cannot be overstated.

In addition, the reputation of startups plays a vital role in their success amidst fierce competition. While social media is gaining prominence, word-of-mouth advertising remains a powerful tool for organic growth. Online marketing, regardless of the platform, requires a distinct voice and strategic approach. Not all startups depend solely on social media for their development.

In conclusion, prioritising cyber security is crucial for startups to establish a strong foundation. A bad reputation can spread rapidly, hindering growth and profitability. By focusing on cyber security, startups can establish a solid reputation and safeguard against issues with their online tools, platforms, and data handling practices.