Today, no individual or organization is immune to cybersecurity threats. Family businesses, their owners, employees, families and their family offices have become particularly attractive targets for cybercriminals.
Canadian family business owners recognize this urgency. In fact, in our latest KPMG Private Enterprise™ Business Survey, they identified cybersecurity as their foremost threat to growth. While 83 per cent agree that cybersecurity is a key business priority, 76 per cent reported lacking the personnel to monitor threats or implement best practices. This is concerning.
As digital threats continue to evolve, essential business functions, including cybersecurity, depend on skilled professionals—often a Chief Information Security Officer (CISO) in larger organizations. However, businesses don’t need to maintain these roles in-house to ensure effective protection. In this post, we’ll explain why.
Understanding the risks
Privately owned enterprises, wealthy families and family offices are increasingly targeted—particularly those with potential access to significant financial assets.
Historically, smaller organizations operated with minimal digital security measures. Today, they are prime targets for malicious cyber attackers who have their sights set wherever there’s a potential opening that could let them walk away with $1 million or more, especially in ransomware attacks—about which, 71 per cent of family-business respondents to our survey said they lack a clear response plan.
Family offices, central to managing family activities and investments, face unique vulnerabilities. A security breach could not only affect the family but also impact multiple associated businesses, undermining confidence and resulting in financial and reputational repercussions.
The unfortunate reality is, many family enterprises and family offices are unknowingly running unsafe applications or home networks that are exposing not only themselves but also the companies they own, and their business partners, to potential threats. Many are also going without people who have the specialized skills to build, implement or upgrade these systems, or sufficient cybersecurity awareness and knowledge among the people they do have to use their existing systems safely.
There’s a lot at stake
In our experience, many clients overestimate their cybersecurity knowledge and preparedness. Again to our survey: despite recognizing their skill gaps, 89 per cent still consider themselves well-equipped to defend against threats.
But key questions remain. Are existing plans effective? Have they been tested? Do they align with the specific needs of the business? Do we have up-to-date security training?
What isn’t up for debate, though, is that private companies and family offices that have inadequate cybersecurity measures in place have a lot to lose financially and reputationally, including:
- Loss of access to critical IT systems
- Decreased productivity and income due to interruptions
- Increased costs for breach response, legal advice and notification efforts
- Emotional strain on families during crisis management
- Reputational damage with customers, partners, investors, employees and the family itself
For private companies and family offices without extensive IT resources, navigating these complex cybersecurity challenges can be daunting. Unlike larger corporations with dedicated cybersecurity teams, smaller entities may lack the infrastructure needed for robust protection.
Meet your new (virtual) CISO
You have good people. You’ve taken steps to address cybersecurity in the family office. Unfortunately, you don’t know what you don’t know (no one does), and an outside perspective that fully considers your broad interests across multiple areas of risk can highlight blind spots in your defences. That’s where a firm like ours can provide on-demand cybersecurity support, helping you identify vulnerabilities and develop effective mitigation strategies—an on-call resource to help you manage all the moving parts should an actual threat arise.
That’s a virtual CISO.
Much like your financial planner, the process should begin with a conversation to understand your family, your business and your goals. This will lead to a tailored cybersecurity plan that also gives you access to the experience and know-how of an entire team of cybersecurity advisors—minus the time and cost required to recruit, hire and train a full-time, in-house staff.
We are optimistic that many of the respondents to our survey are exploring or have already implemented a virtual CISO, which may explain their confidence despite the acknowledged gaps in human capital.
For those yet to address these critical issues, we invite you to reach out. We’re eager to discuss your current cybersecurity strategies and explore how you, your family and your businesses can more effectively safeguard against cyber threats—not just with confidence, but with assurance.
