“The biggest risk is the one you don’t take” is a mantra you’ll hear motivational speakers deliver in their presentations to make the argument that you should throw all caution to the wind and go for it (whatever “it” is).
Encouraging someone to take action on an idea by throwing caution to the wind may sound like good advice and may even earn applause from the audience. However, truly smart, experienced entrepreneurs and business executives NEVER throw “caution to the wind” and take wild risks. Instead, they take calculated risks by carefully considering the potential consequences and implementing measures to reduce the risk and potential losses. They understand that unchecked optimism is not only foolish but dangerous, as unforeseen events can disrupt even the best-laid plans. Therefore, they look for risks and prepare for them by putting buffers, hedges, and checks in place to minimize the impact of any adverse events.
If you follow Warren Buffett’s two rules of investing, you’ll see this same caution: Rule #1 – Never lose money. Rule #2 – Never forget Rule #1.
A good question to ask yourself is where are YOU putting your business and your money at undue risk? Although it is impossible to prepare for and prevent every risk in your business, one common area where businesses tend to take substantial and unmitigated risks is in their data and cybersecurity.
Despite the overwhelming evidence that the risk and the financial consequences of cyber-attacks are enormous, we still hear, “Nobody is going to hack us…we don’t have anything they want,” or “We can’t get hacked because _____,” with the blank being things like “we use cloud applications” or “we have a good firewall,” “our people are too smart to click on bad links in e-mails,” or other similar “reasons” for their false sense of security. They explain it away.
In all honesty, we believe that this lack of concern about data security is not due to confidence or logical reasoning, but rather a deliberate disregard and reluctance to invest in adequate measures to protect their data, business, and finances. Although it is understandable that no one wants to spend a significant amount of money on IT, ignoring the risk does not make it go away.
One of the smartest investors in the world, Howard Marks, CEO of Oaktree Financial, said, paraphrased, the less risk you perceive, the more risk there is. For example, if I do not believe that there is any possibility of me getting into a bad car wreck while driving to the store, I might not put on my seatbelt, use my phone while driving, and be less cautious about my surroundings. However, if I were aware that there was a high likelihood of being in a fatal crash, I would be more vigilant and cautious. Consequently, the lower the perceived risk, the higher the actual risk because we let our guard down and fail to take protective measures.
That’s exactly why small businesses are the #1 target for hackers. They’re EASY prey. Although small businesses do not have the opportunity to brag about taking down giants like Dole or hacking into Microsoft Azure, attacking millions of them through ransomware for a few thousand dollars each can be profitable. However, since these attacks do not attract media attention, similar to the way 6 MILLION car accidents every year don’t make headlines, they often go unnoticed. Only major incidents or those that cause significant traffic disruptions tend to grab public attention.
If you are not all that certain that you are truly and fully protected against such hacks, click here to schedule a brief discovery call with us. We can conduct a quick and easy cyber security risk assessment and tell you for sure if your current IT company is protecting you, and what level of risk you’re at for a cyber-attack. It’s free and comes with no expectations or cost.
Success can be defined not only by the gains achieved but also by the losses avoided. If you had the opportunity to undo a few financial, business, or personal decisions from the past with the knowledge you possess now, you would probably take it. You would likely advise yourself to avoid foolish mistakes and take precautions to prevent the losses you suffered. However, since time travel isn't possible, it's better to take preventive measures against cyber-attacks, as it's always better to be safe than sorry. An ounce of prevention is certainly worth a pound of cure in this case. Call us today for your FREE Cyber Security Risk Assessment.
