Why SMBs Need Proactive Human Risk Management

Research indicates that in the past year, 33% of small and medium-sized businesses (SMBs) experienced a cyberattack, underscoring their vulnerability Microsoft SMB Cybersecurity Report 2024. Historically, studies suggest that 43% of all cyberattacks target SMBs, a figure that highlights their attractiveness to cybercriminals (Source). The average cost of such attacks is estimated at $254,445, with some incidents costing as much as $7 million, primarily due to investigation, recovery, fines, and reputational damage.

So, small and medium-sized businesses are not just collateral targets — they are the primary entry points for attackers. In this blog, we’ll discuss why SMBs need a proactive Human Risk Management and how Keepnet’s Extended Human Risk Management (xHRM) platform equips SMBs with the same level of human-centric defense that large enterprises use — but tailored to their unique needs, budgets, and resource limitations.

Human Risk is a Business Risk — Especially for SMBs

People are every company’s greatest asset — and often, their biggest security risk. In SMBs, employees wear many hats, use multiple communication tools, and often lack in-depth security training. This makes them ideal targets for phishing, social engineering, and data exfiltration attempts.

According to industry research, over 80% of data breaches involve a human element. SMBs, with limited cybersecurity staff or budgets, are especially vulnerable. The attack surface is no longer just technology — it’s people.

Despite the risks, only 14% of SMBs are prepared to face cyberattacks, indicating a significant gap in readiness. However, 94% of SMBs now consider cybersecurity critical to their success, and 80% plan to increase their spending on security measures, reflecting growing awareness. Notably, only 26% believe they are too small to be targeted, a misconception that may leave many exposed (Source).

Comprehensive Analysis of SMB Vulnerability to Cyberattacks

Research consistently shows that SMBs are prime targets for cybercriminals, driven by perceived weaker security measures compared to larger enterprises. More recent data from the Microsoft SMB Cybersecurity Report 2024, based on a survey conducted from September 10-26, 2024, reveals that 33% of SMBs (25-299 employees) experienced a cyberattack in the past year, reinforcing the ongoing threat (Source).

Further, Kaspersky's 2024 threat analysis for the SMB sector, covering January 1 to April 30, 2024, reported 2,402 users encountering malware or unwanted software, with 4,110 unique files distributed under the guise of SMB software, marking an 8% increase in user attacks and over 5% increase in infections compared to 2023 (Source).

In the UK, the National Cyber Security Centre reports that around 50% of SMBs are likely to experience a cybersecurity breach annually, highlighting regional variations (Source).

The financial toll of cyberattacks on SMBs is significant, with varying estimates reflecting different methodologies. The Microsoft SMB Cybersecurity Report 2024 details the average total cost of a cyberattack at $254,445, with a high end of $7 million, broken down as follows:

Table 1: SMB Cyberattack Cost Breakdown

This comprehensive breakdown includes investigation and recovery, fines, reputational damage, missed opportunities, and other costs, providing a holistic view of the financial burden (Source).

Why Proactive HRM Matters More Than Ever for SMBs

Human Risk Management isn’t just a trend — it’s a necessity. A Human Risk Management Platform helps SMBs:

• Prevent Data Breaches: Stop phishing and insider threats before they lead to business disruption.
• Reduce Costs: Eliminate manual security tasks and expensive incidents by automating threat detection and response.
• Build Security Culture: Turn every employee into a security ally through engaging, role-based training and nudges.
• Ensure Compliance: Meet data protection and security awareness requirements without added complexity.
• Scale Easily: Use autopilot and automation features to save time and effort, even with small IT teams.

How Keepnet’s xHRM Platform Protects SMBs

Keepnet’s Extended Human Risk Management platform brings enterprise-grade protection to smaller organizations without the complexity or cost. Built to manage risk from employee behavior proactively, Keepnet provides a layered defense through continuous simulation, AI-driven insights, and real-time response.

Key Features of Keepnet Human Risk Management Include:

• Top Phishing Simulations: Email, SMS, voice, QR code, MFA, and callback phishing simulators to test and reduce risk across every attack vector.
• Adaptive Security Training: Personalized microlearning paths based on each employee’s behavior, role, and risk level. This ensures learning is engaging, relevant, and behavior-changing.
• AI-Driven Threat Analysis: Real-time analysis of reported phishing emails, enabling IT and security teams to respond to threats 168x faster.
• Behavioral Nudges and Watchlists: Identify high-risk individuals with dynamic watchlists and send them automated, context-sensitive nudges to drive behavioral change.
• Risk Dashboards and Action Logs: Visualize every user’s attack exposure, interaction history, and risk score to prioritize resources and reduce vulnerabilities.

Measurable Results from Keepnet Customers

• 90% Reduction in High-Risk Behaviors: Thanks to continuous simulations and targeted training.
• 168x Faster Phishing Response: Automating incident analysis and escalation workflows.
• Up to 90% Time Savings for IT Teams: By using autopilot features for simulation, training, and reporting.

Trends and Future Outlook

Looking ahead, 81% of SMBs say AI increases the need for additional security, and 53% of non-users plan to deploy AI security tools in the next six months, per the Microsoft report. Spending focus areas include data protection (65%), firewall/firewall as a service (54%), and phishing protection (53%), with motivators being protection from financial losses (60%) and safeguarding client/customer data (56%) (Source).

The 51 Small Business Cyber Attack Statistics 2025 projects a 15% increase in cybercrime costs over the next five years, reaching $10.5 trillion by 2025, emphasizing the escalating threat (Source).

This analysis, combining recent and historical data, illustrates the multifaceted vulnerability of SMBs to cyberattacks, their financial and operational impacts, and the urgent need for enhanced preparedness and investment in cybersecurity.

The Bottom Line: Human Risk Deserves Human-Centric Solutions

Traditional tools that only focus on devices, firewalls, or compliance won’t protect SMBs from phishing, data leaks, or insider risk. Keepnet’s xHRM platform offers an intelligent, integrated, and affordable way for SMBs to manage the full spectrum of human risk.

With Keepnet, your organization gets more than just protection — it gains a partner in building a strong security culture. Through automation, personalization, and AI, Keepnet empowers SMBs to act before threats escalate.