As more businesses rely on digital tools to manage operations, the amount of sensitive data being stored including customer records, employee files, and financial information continues to grow. Just like physical documents once kept under lock and key, digital data must be safeguarded with strong protections. Taking proactive steps to secure your information can help protect your business from cyber threats, maintain customer trust, and reduce legal and financial risks.
Small businesses are not immune to data security threats. The following are 10 elements you may wish to consider when taking steps to increase your company’s security position:
1. Establish a team responsible for information security and privacy
If you run a small company, you may think you do not need a dedicated individual for information security; however, smaller companies are as vulnerable to security breaches as larger ones. If you already have an IT team, it may be overwhelmed with other responsibilities leaving them with no time to devote to this area. A dedicated individual or team can support all staff and raise awareness on data protection throughout your company. Have owners and management involved to show commitment to staff whenever possible.
2. Complete an inventory of your systems
Knowing what your business houses for equipment as well as the software and systems your employees use can help you determine the safeguards that may be needed to protect your company’s data. Use a Cybersecurity Inventory tracker which can be regularly updated and reviewed for planning on when equipment might need updating or replacing.
3. Conduct a Data Protection Impact Assessment (PIA)
A PIA is a process used in identifying and mitigating any data protection related risks which may affect your organization or clients you engage with and can help you implement solutions to overcome those risks. Since not all risks can be eliminated, start by asking yourself, “What would happen if?” Would your business be prepared for the outcome? This will allow you to be ready should a data breach occur.
4. Assess your security position and keep software up to date
Get to know your vulnerabilities and use online tools to scan systems for threats and information related to browser versions. Complete any needed updates, known as patching, which oftentimes includes security updates which can help protect your system. Only collect and store data that is necessary for your operations—this is known as data minimization, and it limits exposure in the event of a breach.
5. Develop security policies and procedures
It’s important to develop a company-wide policy on data security. Your policy and procedures can include such things such as:
6. Use necessary security technologies like password managers and MFA
Password managers can allow you to save passwords securely either on a cloud or on your computer. They allow you to create random combinations of passwords making it extremely hard for fraudsters to figure out. Implement multi-factor authentication (MFA) for system logins to add an extra layer of protection beyond passwords.
7. Conduct user awareness training and testing
Train staff on phishing, email scams, securing passwords and authentication and how to protect themselves online. Phishing is a cyberattack where scammers trick individuals into revealing sensitive information—like passwords or credit card numbers—by posing as a trustworthy source, often through fake emails or websites. These scams get increasingly sophisticated, and it is important to keep employees aware of these threats.
8. Assess all your third-party vendors
Ensure that the companies you are dealing with are taking all necessary measures to protect you and your customers. It is essential to conduct a thorough vendor security assessment before onboarding, reviewing their data handling practices, encryption standards, and breach history. A Data Processing Agreement (DPA) that clearly outlines data ownership, access limits, and breach notification procedures is recommended. Ask vendors they have a DPA in place, if not you can begin with a basic confidentiality agreement and add custom clauses on data handling, sharing and breach response. When possible, prioritize vendors that adhere to recognized security standards such as SOC 2, ISO 27001, or NIST.
9. Back up your data and prepare for recovery
Perform regular, automated backups of all critical business data to protect against cyberattacks, hardware failure, or accidental deletion. Backups should be stored securely preferably using both on-site and off-site (or cloud-based) solutions and tested periodically to ensure they can be successfully restored. In addition to backups, develop a disaster recovery plan that outlines which systems, software, and equipment are essential to resume operations. This ensures your business can bounce back quickly and with minimal disruption in the event of a breach or data loss.
10. Develop and monitor a formal system for ensuring continued compliance
Maintaining cybersecurity isn’t a one-and-done task it requires ongoing attention. Regularly review your Cybersecurity Incident Response Plan with your staff to ensure everyone understands their role in the event of a breach. Use tabletop exercises or simulations to identify gaps and improve coordination under pressure. Be sure to update your broader security policies and procedures as your systems evolve or new threats emerge.
CFIB members can access many essential Cybersecurity Templates through the member portal including:
More information on protecting information can be found on our web-post Privacy laws in Canada: How do the rules affect your business? You can also contact your CFIB Business Advisor at 1-833-568-2342 or by email at cfib@cfib.ca