Simple Cybersecurity Policies Every Small Business Should Have

Cyber threats are a growing risk for small businesses. Many think they’re too small to be targeted, but according to the Verizon Data Breach Report, ‘43% of cyberattacks are aimed at small businesses’. Without proper cybersecurity policies in place, a single breach could have damaging impacts, such as financial losses, reputational damage, or even regulatory fines.

By implementing a few clear and simple cybersecurity policies, you can reduce risks and strengthen your company’s security posture.

Below are several must-have cybersecurity policies for small businesses:

1. Acceptable Use Policy (AUP)

This policy sets guidelines for how employees should use company devices, networks, and data. Without an AUP, employees may unknowingly expose the business to security risks by using weak passwords, downloading unapproved software, or accessing unauthorized websites.

Key Elements to Include

• No downloading of unauthorized software or clicking on suspicious links.
• Use only approved cloud storage and communication platforms.
• No defamatory language posted to Social Media sites, etc.
• Employees must return company equipment when they leave the company.

Why It Matters

A clear AUP helps employees understand their role in protecting company data and ensures they follow best practices when using company resources.

2. Strong Password & Authentication Policy

Weak passwords remain one of the biggest cybersecurity vulnerabilities for small businesses. According to Duo Security, ‘81% of hacking-related breaches involve stolen or weak passwords’, making a password and authentication policy a must-have.

Key Elements to Include

• Require strong, unique passwords (12+ characters with a mix of letters, numbers, and symbols).
• Enforce multi-factor authentication (MFA) for all logins, especially sensitive accounts.
• Change passwords every 90 days and never reuse old passwords.
• Use password managers to store and manage credentials securely.

Why It Matters

A strong password policy helps reduce the risk of account takeovers and unauthorized access, keeping your business’s critical systems secure.

3. Data Protection & Encryption Policy

Every business handles sensitive data, whether it’s customer payment details, employee records, or business contracts. A data protection policy ensures that information is handled securely and remains protected at all times.

Key Elements to Include

• Store sensitive data in encrypted formats
• Limit access to critical data based on job requirements.
• Require secure backups of essential data on a regular basis.
• Ensure that all cloud storage services comply with security best practices.
• Data must only be stored in company approved storage locations i.e. Office 365, Google Drive, etc.

Why It Matters

Encrypting and protecting data prevents unauthorized access, minimizing the damage from data breaches or insider threats.

4. Employee Cybersecurity Awareness & Training Policy

Your employees are your first line of defence against cyber threats, but without proper training, they can also be your weakest link. A cybersecurity training policy ensures that everyone in your company understands how to recognize and respond to potential threats.

Key Elements to Include

• Conduct mandatory cybersecurity training for all employees.
• Teach staff to identify phishing emails, social engineering scams, and malware threats.
• Provide ongoing simulated phishing tests to assess awareness.
• Require employees to report any suspicious emails or security incidents immediately.

Why It Matters

Most cyberattacks start with human error. A well-trained team can significantly reduce the risk of phishing attacks and security breaches.

5. Bring Your Own Device (BYOD) Policy

It’s becoming common practice for businesses to allow employees to use personal devices for work, but this can create security risks. Personal devices often don’t have the same security protections as company-issued devices, making them easy targets for hackers.

Key Elements to Include

• Require MFA and device encryption for any personal devices used for work.
• Ensure that personal devices connect only to secured Wi-Fi networks.
• Prohibit storing sensitive business data on personal devices.
• Require remote wipe capability in case a device is lost or stolen.

Why It Matters

A strong BYOD policy allows employees to work flexibly without compromising business security.

6. Incident Response Policy

No matter how strong your cybersecurity measures are, incidents can still happen. An incident response policy ensures employees know what to do during a security breach to minimize damage and recover quickly.

Key Elements to Include

• Define what constitutes a cybersecurity incident (e.g., ransomware, malware infection, phishing attack, data breach).
• Establish a clear reporting process for employees to follow.
• Assign a response team to investigate and mitigate threats.
• Create a step-by-step recovery plan to restore business operations safely.

Why It Matters

The faster you respond to a cybersecurity incident; the less damage it will cause your business.

Conclusion

Cybersecurity policies don’t have to be complex or costly, but they are valuable in helping to protect your small business. Implementing these simple yet effective policies can reduce security risks, protect sensitive data, and empower employees to make smarter cybersecurity decisions.

Need help strengthening your business’s security? A Virtual CISO (vCISO) can help develop and implement these policies without the cost of a full-time security officer.

Resources

Daily, M. (2024) Essential cybersecurity policies every business should have, TPx Communications. https://www.tpx.com/blog/essential-cybersecurity-policies-every-business-should-have/

Greisiger, M. (2024) Cybersecurity strategies for small-to-medium businesses, NetDiligence. Available at: https://netdiligence.com/blog/2023/11/essential-cybersecurity-strategies-for-small-to-medium-sized-businesses/

Cybersecurity blueprint for smbs. Roanoke, VA | CMIT Solutions. https://cmitsolutions.com/roanoke-va-1017/cybersecurity-solutions/protecting-small-businesses/