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12
Mar

Cyber Threats and Power Outages: A SME Survival Guide

Even though it’s Autumn, heatwaves are expected to continue, according to the Bureau of Meteorology.Your SME may face potential scorching heat and bushfire risks, with significant challenges to our power grid.

Australia’s ageing energy infrastructure makes it vulnerable to extreme weather, solar superstorms, and natural disasters, which can damage local ICT infrastructure, grids, satellites and internet connectivity.

Demand for power is surging and, cyberattacks are on the rise.

For SMEs, power outages and cyber blackouts can lead to immediate and devastating consequences, with financial losses running into thousands of dollars per minute. Proactively addressing these risks can safeguard your business.

What Are Cyber Blackouts?

Cyber blackouts occur when malicious actors disrupt energy networks, typically targeting digitalised power grids. (Our nation’s grids aren’t fully digitalised yet, but they’re definitely on the way). Unlike traditional power outages, these cyber blackouts are deliberate, often linked to ransomware or geopolitical tensions.

Australia’s outdated infrastructure heightens our vulnerability to cyberattacks. Terrence Daniel from PSS Distributors warns that energy companies worldwide are grappling with escalating cyber risks, putting businesses and communities at risk of prolonged outages and financial strain.

For SMEs, even short disruptions can lead to:

  • Corrupted data
  • Lost revenue
  • Compromised operations
  • Disrupted supply chains
  • Regulatory fines or compliance issues
  • Increased insurance issues due to perceived risk
  • Long-term recovery costs
  • Legal consequences, including lawsuits from affected stakeholders, and
  • Reputational damage.

How Cyber Blackouts Impact SMEs

Small businesses are especially vulnerable to the domino effects of cyber blackouts. When servers go offline, essential data can be lost or irreparably damaged. Compromised smart systems, such as automated security or climate controls, may expose businesses to security risks or operational delays

A Gartner report estimates the cost of downtime at $5,600 per minute, a staggering figure for SMEs that often lack the financial cushion to absorb such losses. Delayed responses to customer, or missed deadlines also damage reputation.

Strategies for SMEs

Protecting your business from cyber blackouts calls for a multi-faceted approach. Consider these five steps to reduce your risk:

  1. Strengthen cybersecurity: Keep software and networks updated with the latest security patches to prevent hackers exploiting vulnerabilities
  2. Backup critical data: Keep an offline backup of vital files, as cyberattacks can compromise data on the cloud
  3. Invest in backup power: A reliable backup battery or Uninterruptible Power Supply (UPS) can keep essential systems running during outages
  4. Use surge protection: Power surges during outages can damage equipment, but surge protectors help avoid costly replacements, and
  5. Develop a resilience plan: Create an emergency action plan for power failures to ensure operational continuity and minimise downtime.

The Role of UPS Systems in Minimising Risks

UPS solutions as essential for modern businesses. The Australian Cyber Security Centre (ACSC) and the Australian Energy Market Operator (AEMO) recommend them as a critical part of any business’s cybersecurity and resilience strategy.

The benefits of UPS solutions include giving immediate power during outages, so ensure critical operations like payment systems, servers, and lighting remain functional. For SMEs reliant on digital tools, this can be the difference between weathering a disruption and facing prolonged downtime.

UPS systems also protect against surges, offering continuity and safety for your equipment. If you haven’t yet invested in one, explore UPS options available to suit your business size and needs.

SMEs can access grants and funding to help cover the cost of a UPS system, although they may not be specifically labelled as UPS funding. Instead, look for programs focused on improving energy efficiency, cybersecurity, or infrastructure resilience. Visit this official government energy website, and use this company website can help choose the UPS for your business.

Cyber blackouts might be a growing concern, but they’re not inevitable. A proactive approach can help safeguard your business from unnecessary risks.

As your broker or adviser, we can help you secure the right protections, from tailored insurance solutions to practical strategies for operational resilience. 

Contact us to discuss how we can support your business.

 

Article Supplied by OneAffiniti

Photo by dem10

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