Why Should SMBs Retain a vCISO?

PROBLEM: 58% of cyberattacks in the U.S. affect Small-to-Medium Businesses (SMBs).

SOLUTION: Retaining a vCISO can cost-effectively reduce the reasons why SMBs are more vulnerable to cyberattack than larger firms.

Reasons SMBs are more vulnerable to cyberattack than larger firms:

SMB Cybersecurity Posture Is Often Weaker Compared to Larger Firms

SMBs often have a weaker cybersecurity posture than larger firms due to the following circumstances: Limited Resources: SMBs often lack dedicated cybersecurity leadership, staff, and budgets for advanced cybersecurity management and tools. Fewer Cybersecurity Controls: Many SMBs operate without mature security frameworks such as NIST CSF, ISO 27001, etc. which leaves gaps in detection, response, and recovery. Retaining a vCISO can help increase resources and and cybersecurity controls to improve the SMB’s cybersecurity posture.

SMBs Are Often Perceived as Easier Targets than Larger Firms

SMBs are often perceived as easier targets than larger firms for the following reasons: Low-Hanging Fruit: Cybercriminals often view SMBs as the path of least resistance because SMBs are not as well-defended against cyberattack and, thus, more likely to be compromised quickly and pay ransoms and less likely to effectively remediate cyber breaches in a timely manner. Lack of Focus on Cybersecurity: Unlike large enterprises, SMBs rarely have third-party audits, red teaming, or regulatory pressure which makes them soft targets for cybercriminals. Retaining a vCISO can help improve cybersecurity measures to take an SMB out the “low hanging fruit” category as perceived by cyber attackers while increasing an SMB’s focus on cybersecurity that will improve the SMB’s cybersecurity posture.

Supply Chain and Vendor Access

SMBs are Often Used as Stepping Stones to Larger Target: Threat actors often target SMBs as entry points into larger organizations because many SMBs are vendors or service providers with privileged access to enterprise systems. Third-Party Risk: Attackers exploit SMB vulnerabilities to launch downstream attacks through managed service providers or trusted integrations. Retaining a vCISO can help improve cybersecurity measures to take an SMB out the “stepping stone” category as perceived by cyber attackers while increasing an SMB’s focus on third-party risk that will improve the SMB’s cybersecurity posture.

Inadequate Employee Training

SMBs are often more susceptible to phishing and social engineering attacks because SMBs often lack formal security awareness programs which makes SMB employees more vulnerable to human-centric attacks. Inadequate employee training can also lead to credential reuse and poor hygiene. For example, without strict password policies or MFA enforcement, SMBs are more exposed to account compromise. Retaining a vCISO can help institute adequate employee training to make an SMB less susceptible to phishing and social engineering attacks while increasing an SMB’s focus on credential reuse and poor hygiene that will improve the SMB’s cybersecurity posture.

Delayed Detection and Response

Cybercriminals can take advantage of the delayed detection and response time associated with SMBs lack of cybersecurity defenses that often result in the following types of vulnerabilities: Longer Dwell Time: SMBs frequently lack the tools and staff to monitor for threats in real time which increases the damage of a cyberattack before it is detected and remediated. Limited Incident Response Capabilities: Few SMBs have formal playbooks, legal contacts, or pre-negotiated Incident Response (IR) retainers which often leads to slower recovery and higher losses. Retaining a vCISO can help increase an SMB’s incident response time to reduce attacker dwell time while increasing an SMB’s incident response capabilities that will improve the SMB’s cybersecurity posture.

Overconfidence and Misplaced Assumptions

“Too Small to be a Target” Mindset: Many SMBs underestimate their attractiveness to attackers, especially for automated or indiscriminate campaigns like ransomware or credential stuffing. Underinvestment in Cybersecurity Program: Cybersecurity is often deprioritized in favor of revenue-generating initiatives, despite increasing risk exposure. Retaining a vCISO can help reduce an SMB’s overconfidence and misplaces assumptions and increase investment in the SMB’s cybersecurity program that will improve the SMB’s cybersecurity posture.

Why should SMBs retain a vCISO?

Cost-Benefit and ROI Compared to a Full-Time CISO

Lower Direct Cost: A virtual CISO typically costs a fraction of a full-time CISO. Industry analysts report a vCISO engagement runs about 30–40% of what an in-house CISO’s salary would be. Unlike a salaried hire, vCISO services are usually contracted via a retainer with no benefits or onboarding costs. This makes access to executive-level security expertise affordable for SMBs that could not afford pay a $150–$250K+ CISO salary. Flexible Engagement: SMBs pay only for the cybersecurity services they need. SMBs can scale a vCISO’s efforts up or down (or by project) to fit the SMB’s budget and priorities. For example, during a compliance project or after a cyber incident, an SMB might ramp up vCISO hours then scale back to a maintenance level. This elasticity avoids paying an idle full-time salary in quiet periods. Hidden Savings: A vCISO frees up existing IT staff to focus on core IT functions rather than cybersecurity minutiae which is often time consuming. For example, instead of having IT engineers draft security policy or conduct cybersecurity training, the vCISO can handle those tasks which improves the SMB’s IT productivity. Retaining a vCISO also saves an SMB the cost of recruitment, benefits, and turnover costs associated with a full-time executive. Rapid Return on Investment (ROI): Retaining a vCISO often pays off quickly. For example, SMBs typically see measurable security and compliance benefits within 6–12 months of hiring a vCISO. These benefits include avoiding incidents, fines, and downtime. Examples: (1) Prevented Breach Costs: SMB data breaches can cost $826–$653,587 per incident (Verizon). Averting just one cyber breach can justify years of vCISO fees. (2) Downtime Avoidance: Average downtime for small companies costs $1,670 per minute ($100K per hour). A vCISO’s rapid response and planning can cut hours of downtime (saving tens to hundreds of thousands of dollars). (3) Fines & Penalties: SMBs face average penalties of $30,651 when non-compliant. By ensuring compliance, a vCISO can save that entire sum (or more). (4) Customer Trust and Revenue: Beyond hard costs, avoiding breaches and compliance failures preserves customer confidence, revenue, and trust that can lead to increased business, indirectly boosting ROI. Case Example – Funding and Growth: In practice, vCISO services have tangible impacts. For instance, a tech startup used a vCISO to implement a strong security framework that met investors’ requirements. This helped the company secure critical funding rounds. Similarly, a growing SMB experiencing a fundraising or M&A process can use vCISO guidance to satisfy due diligence, turning security into a growth enabler. Case Example – Avoided Fines: Another case involved a healthcare SME facing strict HIPAA audit. With a vCISO’s help, the company achieved compliance and avoided regulatory fines. Likewise, an e-commerce retailer worked with a vCISO to satisfy PCI-DSS controls and steer clear of potential penalties. These success stories illustrate how the upfront vCISO expense yields far greater savings.

Contracting a vCISO Overcomes Resource Constraints

Most SMBs lack in-house security executives or teams and often cannot stay current with evolving regulations (HIPAA, PCI-DSS, CMMC, GDPR, etc.) or emerging threats. This “security gap” makes them vulnerable. A vCISO can step in to fill these gaps on a flexible basis, providing CISO-level expertise without a full-time salary.

Achieving and Maintaining Regulatory Compliance

Framework Expertise: vCISOs bring specialized knowledge of regulations and standards. They understand requirements like HIPAA (healthcare), PCI-DSS (payment card industry), CMMC/NIST 800-171 (defense contractors), GDPR/CCPA (data privacy), SOC 2, ISO 27001, etc. This means they can interpret complex rules and ensure SMB policies and controls meet them. Gap Analysis & Policy Development: A vCISO conducts compliance gap assessments and helps write the necessary policies and procedures. For instance, one SMB healthcare provider engaged a vCISO who performed a risk assessment, developed tailored security policies, and trained staff – ultimately achieving full HIPAA compliance and greatly reducing breach risk. Audit Readiness & Monitoring: A vCISO can continuously monitor an SMB’s compliance posture and keep documentation audit-ready. The vCISO can prepare SMBs for third-party audits and certification processes. In one case, an online retailer partnered with a vCISO to implement PCI-DSS controls (secure payment processing, vendor guidance, monitoring) and successfully passed audits, avoiding costly fines. Ongoing Updates: As regulations change, a vCISO can update controls and training. For example, a vCISO can keeps SMBs informed about new regulatory updates (new PCI DSS rules, GDPR guidance, etc.) and proactively adjust the compliance program to prevent violations.

Improve Incident Response Capabilities

Incident Response Planning: A vCISO ensures the SMB has a robust, tested Incident Response Plan (IRP). They define clear roles/responsibilities and run drills. This preparedness is critical: One report notes that vCISOs “create, test, and update” IR plans so organizations can react quickly when an incident occurs. Continuous Monitoring: vCISOs can implement 24/7 monitoring tools (SIEM, log analysis, etc.) to detect threats early. By proactively identifying vulnerabilities and suspicious activity, they help prevent incidents or catch them in time. Rapid Containment: In a breach, the vCISO leads the response team to contain damage. For example, an e-commerce SMB at risk of DDoS attacks had its vCISO develop a detailed response plan. When an attack occurred, the vCISO directed mitigation efforts, protected customer data, and restored services, keeping downtime and revenue loss to a minimum. Post-Incident Review: After any incident, a vCISO can conducts a post-mortem, adjusts policies, and strengthens defenses to prevent recurrence. This continuous improvement loop significantly hardens the SMB against future attacks.

Proactive Cybersecurity Strategy

Strategic Planning: A vCISO can align security roadmaps with business goals and take the time to understand an SMB’s objectives and craft a long-term information security strategy to support growth. This includes selecting the right technologies and controls (MFA, firewalls, encryption, etc.) and integrating security into business processes. Risk Management: A vCISO can perform regular risk assessments (including third-party/vendor risk reviews) to identify and prioritize threats. By focusing on the highest risks first, an SMB can use its limited budget more effectively. For example, a vCISO might recommend implementing multi-factor authentication first, then phasing in other controls – an approach that secured a resource-strapped startup immediately while planning future improvements. Security Culture & Training: Human error causes most cyber breaches. A vCISO can establish security awareness programs to build a security-minded culture by implementing cybersecurity awareness training to train employees on the concepts of phishing, safe data handling, and incident reporting to transform SMB staff into an active defense layer. Ongoing Adjustment: As an SMB evolves (new products, markets, acquisitions), a vCISO can revisit the SMB’s cybersecurity requirements to keep the SMB’s cybersecurity program in close alignment with the SMB’s business strategy. For instance, if an SMB rapidly expands or goes through an acquisition, the vCISO updates the security roadmap to cover new assets and data flows. This proactive planning helps the SMB stay ahead of threats rather than merely reacting to them.

Summary of Benefits

SMBs are disproportionately affected by cyberattacks not because they are inherently more vulnerable, but because SMBs lack the budget to employ adequate cybersecurity expertise. At the same time, the cybercrime economy rewards scalability and minimal effort. Attackers automate reconnaissance and exploit known weaknesses which makes SMBs an attractive return on investment. As the threat landscape evolves, SMBs must shift from reactive to proactive security postures to reduce their exposure. For many SMBs, retaining a vCISO is the most cost-effective way to shift from reactive to proactive security postures to reduce their exposure.