Protecting Innovations

By Christiane Hilsmann

A study points to security risks facing small and medium-sized companies

Theft, hacking, and corporate espionage are among the greatest security risks facing German small and medium-sized companies, according to "Gefahrenbarometer 2010" (Risk Barometer 2010), recently published by Corporate Trust Business Risk & Crisis Management. The study examined the global security risks facing German small and medium-sized companies against the backdrop of the current financial and economic crisis. Companies with annual sales between EUR 50 and EUR 250 million or between 250 and 1,000 employees are most at risk, according to the study. Theft, burglary, and robbery are the most common causes of loss, accounting for 20.1% of cases. Corruption, fraud, and embezzlement are second, at 15.1%, closely followed by hacker attacks, at 14.1%.

Given that small and medium-sized companies are particularly innovative, white-collar crime and industrial espionage are currently increasing rapidly, says Corporate Trust. "Companies should make no compromise when it comes to the security of their information capital. Security leaks and data loss not only  damage the company's public image significantly, they also jeopardize business in the long term," says Michael Frauen, regional director at IT security company RSA, which also worked on the study.

In addition to outlining the risks, the study also confirmed increasing awareness of security-related issues. It found that 53.1% of the companies that responded intend to sensitize their employees to the issue in the future.