Awareness of today’s vast and complex cyber risk landscape is in decline among local small- and medium-sized enterprises (SMEs), this year’s QBE SME Survey for Singapore reveals.
605 SMEs were surveyed between December 2023 and January 2024*, whereby Singaporean SME business leaders were polled for their views on operational risks that most affect SMEs – covering the areas of cybersecurity, AI, and workplace safety and health (WSH).
47% of respondents said that they were fully informed of possible cyber risks, 10% less than the 57% recorded last year. As 2024 saw a smaller number of SMEs (25%) affected by cyber events (38% in 2023), this likely resulted in a decrease in awareness of possible cyber risks.
That said, the number of executives who felt they were somewhat aware of cyber risks rose, from 40% last year to 48% this year, suggesting an acknowledgement of new risks that they may not yet know of. The top three risks cited by survey respondents include malware (43%), data breaches (43%), and phishing and smishing (39%).
The survey also found that the proportion of SMEs that don’t have any processes or protection against cybers risks also rose dramatically, from 9% last year to 19% this year. Mr. Shun Quan Goh, Head, Underwriting, Retail & SME, QBE Singapore, said, “This number shows how vulnerable SMEs may be to cyber risks, and underscores the need for companies to educate, upskill and protect themselves in this area. Businesses cannot afford to be complacent about cyber security, it really is a matter of when, and not if, a cyber breach happens.”
Of those with some form of protection, 59% of SMEs cited software solutions as the main form of protection for cyber security, followed by staff training (46%), dedicated staff to handle cyber security (44%) and policies for handling potential cyber risks (43%).
Of note, just 38% of SMEs have insurance for cyber security risks, but over half (55%) of respondents have cited an openness to purchase cybersecurity insurance this year.
Mr. Goh added, “The cyber risk landscape evolves quickly, and it can be hard to keep up. This is reflected in our survey, with the majority of SME executives saying they don’t fully understand the threat domain. This is where insurance comes to the fore: not only can we help businesses manage and transfer the risk, we can help them stay ahead of emerging trends.”