Innovation and Security: Balancing Risk in the Tech Industry

Cybersecurity is one of the most pressing challenges facing companies today. Without an efficient cybersecurity strategy, a single breach can have severe and far-reaching consequences. When something goes wrong, the lack of preparation can result in financial losses, operational downtime, and damage to customer trust and reputation. 

Balancing demand for product development with a commitment to robust cybersecurity can be challenging, yet it’s crucial for building trust and ensuring sustainable growth. In this guide, you’ll find practical tips to help you balance the demands of rapid innovation with the need for robust cybersecurity measures.

Common Cybersecurity Challenges Faced by Tech Companies

Companies fall to their cybersecurity processes, and in the fast-paced tech industry, weak or outdated security processes can create vulnerabilities that compromise customer trust and long-term growth. Below are four common cybersecurity challenges that tech companies frequently face as they grow.

1. Prioritizing Speed Over Sustainability

You can’t stay ahead in the tech industry without pushing new technologies and features. However, this rapid pace often comes at the expense of sustainable security practices. Many tech company leaders feel pressured to prioritize speed over thoroughness, sometimes rushing features to market without taking the time to integrate necessary security measures. This approach may offer short-term gains but can also result in costly security liabilities down the road.

2. Taking a Reactive Approach to Risk

A frequent pitfall for tech companies is the temptation to take a reactive approach to cybersecurity. Many companies wait until an incident occurs before addressing vulnerabilities. This reactive stance often leaves organizations scrambling to respond to breaches or attacks without a clear remediation plan, leading to extended downtime. And by this point, the financial, operational and reputational damage has been done, as we explore in our next point.

3. Losing Customer Trust

When a company suffers a breach, the immediate consequences are often severe: lost customer data, disrupted services, and a tarnished reputation. Many companies, especially smaller businesses, experience lasting damage to their brand and struggle to recover from these setbacks. In certain scenarios, companies also face legal and financial damages as a result of a breach. Trust takes time to earn, but only a moment to lose.

4. Ignoring Multiple Touchpoints and Supply Chain Vulnerabilities

Tech companies operate within complex, interconnected networks where every internal or external touchpoint represents a potential security risk. If even one link in this chain lacks robust security practices, it can expose the entire organization to risk.

• Employee devices: Each employee device that connects to a company’s network represents a potential entry point for cyber threats, including insider threats.
• Internal systems: Centralized databases, internal networks, and proprietary systems contain vast amounts of sensitive data.
• Third-party service providers: Vulnerabilities in their security can serve as entry points for attackers, potentially compromising the entire network.
• Supply chain standards and compliance: Weak security protocols in any supply chain partner can create vulnerabilities that expose the entire network to risk.

Embracing a Proactive Approach to Risk Management

Tech companies need to prioritize cybersecurity from day one. It’s far more efficient to embed security into a company’s tech stack from the beginning than it is to address vulnerabilities as they occur. 

Delaying action leads to the accumulation of technical debt where security issues mount and intensify with growth. Establishing a proactive security culture serves companies well over time, reducing the necessity for costly, complex fixes down the line.

Basic cybersecurity practices can help establish a proactive approach, including: 

• Employee Training: Builds awareness and understanding of cybersecurity protocols to minimize human risk factors
• Multi-Factor Authentication: Strengthens access controls to protect sensitive information and reduce unauthorized access
• Regular Risk Assessments: Provides periodic evaluations of security measures to identify vulnerabilities before they become major issues

For tech companies planning international expansion, it’s also important to consider data privacy regulations like the General Data Protection Regulation (GDPR) in the European Union. Adherence to international standards facilitates entry into new markets and builds client trust worldwide.

Companies need to take a proactive approach to securing their software development lifecycle (SDLC). An SDLC security review can help identify vulnerabilities across each development stage, from planning to deployment. This assessment includes examining code access, ensuring proper separation of duties, and confirming secure coding practices. Proactively managing SDLC security ensures that cybersecurity remains integral to the development process, protecting the company and its clients from potential future risks.

Obtaining Relevant Security Attestations

Obtaining recognized security attestations can be a game-changer for tech companies. These certifications demonstrate a commitment to data protection, providing a competitive edge and building client trust. Key security attestations that companies should consider include:

• SOC 2: Focused on controls relevant to security, availability, processing integrity, confidentiality, and privacy, SOC 2 attestation is essential for companies handling sensitive data. This signals that a company has implemented rigorous safeguards and meets high data management and security standards.
• ISO 27001: This globally recognized standard outlines best practices for information security management. ISO 27001 certification mandates companies develop, sustain, and enhance their information security management system (ISMS).
• ISO 42001 (AI-Specific): Certifications like ISO 42001 offer a way to standardize AI risk management practices. This certification shows that a company has implemented security protocols to responsibly manage AI, which can be especially important for organizations leveraging AI in sensitive or high-stakes applications.

How Smith + Howard Supports Tech Companies

It’s hard to balance proactive efforts to minimize risk while growing in the tech industry. That’s where Smith + Howard comes in.

With expertise across a range of key services, Smith + Howard offers a comprehensive approach that supports tech companies in building trust, securing sensitive data, and preparing for long-term success.

Smith + Howard provides targeted guidance in core cybersecurity areas:

• Cyber Risk Assessments: Identify current vulnerabilities and create a roadmap for enhanced security measures based on best practices that can evolve as the company grows
• Certified Cloud Security Professional (CCSP) Services: Tailored support for cloud-native companies, ensuring secure cloud-based operations in environments like GCP, Azure, and AWS.
• Cyber Risk Management: Ongoing monitoring, management, and mitigation of cybersecurity threats to protect sensitive assets and maintain business continuity.
• Technology Security Assurance Services: Support in obtaining critical security indicators like SOC 2 and ISO 27001.
• Software Development Lifecycle (SDLC) Security Reviews: Evaluation of development processes to ensure security throughout each stage, focusing on the people, the process, and the technology.

Additionally, our team offers security consulting services to help companies implement industry-standard frameworks, including the NIST Cybersecurity Framework and the NIST AI Risk Management Framework. For AI-driven firms, we also assist with implementing ISO 42001, a standard that safeguards AI management systems.

Beyond cybersecurity, Smith + Howard provides an array of accounting, assurance, tax, and advisory services designed to meet the broader needs of technology companies, ensuring a stable foundation for continued growth. 

Contact us today to learn how we can help you balance risk with innovation as you grow your technology company.