“Cybercrime is the greatest threat to every company in the world.”
 

~ Ginni Rometty, former President & CEO, IBM

The numbers are sobering, and they hit directly at a business's bottom line. According to Statistics Canada, one in six of all Canadian businesses were impacted by a cyber attack in 2023¹– and even more worryingly, a 2024 survey by the Business Development of Canada (BDC) found that the number soars to 73% for small businesses.²

And these attacks often result in devastating financial impacts for their targets, with the toll only rising. In 2023, businesses in Canada, the U.S., and Europe paid an estimated $1.1 billion (USD) in ransoms to cybercriminals, double the number in 2022, with the average payout coming in at $1.8 million (USD)³ – a number that does not include the cost to repair and recover from the attack, nor the lost business, reputation, and revenues these attacks can directly and indirectly result in. Phishing and credential theft attacks alone account for over 70% of cyber breaches,⁴ while ransomware attacks have surged 20% already in 2025. ⁵

Unfortunately, given their size and often more limited ability to protect themselves, small- and medium-sized businesses are seen by cybercriminals as "low-hanging fruit," and so the question to consider as an owner isn't if you'll be targeted, but when.

But here's an empowering fact: cybersecurity represents one of the highest-return investments you can make in your business's future. By implementing the following five essential security measures, you're not just defending against attacks – you are protecting your assets, preserving your company's valuation, and even securing your financial legacy:

Measure 1: Deploy multi-factor authentication as your highest-impact, lowest-cost investment

Often cited as the most powerful security investment a business can make, multi-factor authentication (MFA) requires neither significant capital nor complex implementation. According to industry experts, MFA can block over 90% of phishing attacks,⁶ yet only 46% of small or medium businesses have implemented it and just 13% require it for most accounts.⁷

MFA works by requiring users to provide two or more verification factors – something they know (password), something they have (smartphone), or something they are (fingerprint). This creates multiple barriers that cybercriminals must overcome, dramatically reducing your business’ risk profile.

As a start, consider activating MFA to protect your most valuable digital assets: email platforms, banking systems, cloud storage, and client databases. Most major platforms now offer built-in MFA options, making this investment both straightforward and immediately protective of your business's critical infrastructure.

Measure 2: Turn your team into your strongest defensive asset

Human error drives 95% of all cybersecurity incidents,⁸ making your employees both your greatest potential vulnerability and your most powerful line of defense. Investing in comprehensive cybersecurity training yields measurable returns by converting risk into resilience.

Your training program should therefore ideally focus on threat recognition, particularly phishing attempts – cybercriminals favourite means of attack, and behind as much as 85% of breaches, according to recent UK surveys.⁹ Teach employees to verify unexpected requests for sensitive information, especially those creating artificial urgency or fear.

Consider this investment's immediate return on investment: a well-trained employee who identifies just one sophisticated phishing attempt could potentially save your business thousands – if not millions – of dollars. That single prevention might amount to the cost of training across your entire team.

Measure 3: Secure your digital infrastructure with strategic asset protection

Strong cybersecurity requires a layered defensive approach to protecting your business's digital assets, much like diversifying a financial portfolio spreads risk across multiple asset classes.

Security experts recommend beginning with robust endpoint protection on all business devices: computers, tablets, and smartphones. Ensure all software receives regular security updates, as cybercriminals frequently exploit known vulnerabilities in outdated systems to compromise business operations.

Implement a comprehensive backup strategy following the 3-2-1 rule:

3: Maintain three copies of critical data

2: Store them on two different media types

1: Keep one copy offline or offsite.

This approach ensures ransomware can't encrypt your entire data infrastructure, while providing a recovery option that protects your business continuity without financing criminal operations.

Your network security infrastructure requires enterprise-grade firewalls and secure Wi-Fi networks with WPA3 encryption. Consider implementing network segmentation, which acts like digital “fire doors” to contain a breach within one area, preventing it from spreading across your entire business ecosystem.

Measure 4: Develop your incident response strategy as business continuity insurance

Despite your best preventive investments and measures, preparing for potential security incidents is crucial risk management. A well-developed incident response plan minimizes damage, reduces recovery time, and helps maintain customer trust – protecting both immediate operations and long-term business relationships.

Your response strategy should include immediate containment procedures: isolating affected systems, assessing breach scope, and executing pre-established communication protocols. Assign specific roles to team members and maintain current contact information for external resources: cybersecurity professionals, legal counsel, and insurance providers.

With your team, practice your response through regular tabletop exercises, treating them with the same seriousness as any other business continuity planning (BCP). Document everything during actual incidents – this information can prove invaluable for recovery efforts, insurance claims, and preventing future attacks that could threaten your business's financial stability.

Measure 5: Monitor and maintain your cybersecurity defence as ongoing risk management

Cybersecurity isn't a one-time capital expenditure or a one-off effort – it's an ongoing operational investment that requires continuous attention and strategic adaptation, much like managing any other critical business function.

Implement continuous monitoring solutions that detect unusual network activity or unauthorized access attempts. Many cost-effective options now offer real-time alerts and automated responses to common threats, providing 24/7 protection for your business assets.

Schedule regular security assessments, either internally or through third-party professionals. These evaluations identify vulnerabilities before cybercriminals exploit them, preventing potentially catastrophic financial losses. Think of these assessments as regular check-ups that maintain your business's digital health and competitive viability.

Stay informed about emerging threats through reputable cybersecurity resources and industry-specific groups where you can learn from peers' experiences. Review and update all security measures quarterly – as your business grows and technology evolves, your cybersecurity defence must evolve accordingly.

Your business' financial future is very likely to depend on digital protection

The cybersecurity landscape presents undeniable challenges for small businesses, but strategic investment in digital protection offers measurable returns and essential risk mitigation. By implementing the above five core security measures, you are building robust defences that can help protect your business from the vast majority of cyber threats. Remember, cybercriminals target businesses they perceive as unprepared and vulnerable. Every security measure you implement moves your business further from being an easy target and closer to being an enterprise that's too well-defended and risky to attack profitably.

The investment you make in cybersecurity today is a direct investment in your company's valuation and longevity. The associated costs are minimal compared to the catastrophic financial and reputational consequences of a successful breach, safeguarding not just your data and operations, but your business legacy and the wealth it represents.

At RBC Dominion Securities, we know that protecting your business is a critical component of protecting your wealth, and we take that protection seriously. Talk to your Investment Advisor today to learn how you can partner together to protect you and your family. And take a few minutes today to review the RBC Cyber Security site to learn more about cybersecurity and current cyber threats, and how to remain cyber safe.

Sources

1. Statistics Canada (2023). The Daily — Impact of cybercrime on Canadian businesses, 2023. https://www150.statcan.gc.ca/n1/daily-quotidien/241021/dq241021a-eng.htm 
2. Business Development Bank (2025). Cyberattacks: Too many risks to ignore. https://www.bdc.ca/en/articles-tools/blog/cyberattacks-small-businesses-remain-denial
3. Royal Bank of Canada, “Money Matters” (2025). Creating a Ransomware-Resilient Business. https://www.rbcroyalbank.com/en-ca/my-money-matters/money-academy/cyber-security/cyber-security-for-business/creating-a-ransomware-resilient-business/
4. SpyCloud (2025). SpyCloud’s 2025 Identity Exposure Report: Breaking Down the Identity Threat Landscape. https://spycloud.com/blog/2025-annual-identity-exposure-report/
5. Qualysec. (2025). "52 Small Business Cyber Attack Statistics for 2025." https://qualysec.com/small-business-cyber-attack-statistics/
6. Microsoft (2019). “One simple action you can take to prevent 99.9 percent of attacks on your accounts.”  https://www.microsoft.com/en-us/security/blog/2019/08/20/one-simple-action-you-can-take-to-prevent-99-9-percent-of-account-attacks/?msockid=023d3fe58b8d60f91b1e2b4d8a276181
7. BD Emerson. (2025). "Must-Know Small Business Cybersecurity Statistics for 2025." https://www.bdemerson.com/article/small-business-cybersecurity-statistics
8. Infosecurity Magazine (2025). “95% of Data Breaches Tied to Human Error in 2024”. https://www.infosecurity-magazine.com/news/data-breaches-human-error/
9. Government of the United Kingdom – Home Office (2025). Cyber security breaches survey 2025. https://www.gov.uk/government/statistics/cyber-security-breaches-survey-2025/cyber-security-breaches-survey-2025

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