Cyber Security Project: Analyzing Threats to Small Businesses

This project, completed for a Masters of Professional Accounting course, delves into the critical issue of cyber security threats faced by small businesses. It begins with an introduction to the increasing reliance on technology and the associated risks, particularly cyber threats like data leaks, opaque algorithms, and the silencing of security reports. The project's objective is to analyze the impact of these threats on business operations, identify the most significant cyber security issues, and explore potential mitigation strategies. The scope includes risk analysis, impact evaluation on finances and operations, and the proposal of probable solutions. The project incorporates a comprehensive literature review covering challenges, overview of issues, various threats, and their impacts, including economic costs, reputational damage, and legal consequences. It also explores preventive solutions like cyber security policy implementation and monitoring systems. The project aims to provide valuable insights for small business owners and IT experts, offering a framework for understanding and addressing cyber security threats.

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MASTERS OF PROFESSIONAL ACCOUNTING
By (Student’s Name)
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Table of Contents
1. Introduction..................................................................................................................................2
2. Project Objective.........................................................................................................................2
3. Project Scope...............................................................................................................................3
4. Challenges of Cyber Security in Business...................................................................................3
4.1 Overview of Cyber Security Issues.......................................................................................4
4.2 Various Cyber Security Issues for business...........................................................................4
4.3 Impact on Business Organizations.........................................................................................7
4.4 Possible Cyber Security Options...........................................................................................9
5 Research question…………………………………………………………………………….11
6 Research design …………….………………………………………………………………....13
7 research limitation ……………………………………………………………………………15
8 Time schedule…………………………………………………………………………………17
9 Conclusion.................................................................................................................................18
10 Appendix ……………………………………………………………………………………19
11Appendix………………………………………………………………................................19

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1.0 Introduction
Technology has very rapidly become part of the world around us. Most of the things we
do are technologically endorsed. Beginning from our personal level, business levels, and many
other forms of technology. Both small business and huge organizations have endorsed modern
technology. Such growth of technology has led to the development of activities in the business.
Business operations have also improved with the coming of technology. There are several
implications of what technology has done in opening up business opportunities for small
businesses. Technology has also created rise of competition within the various markets. This has
been done by exposing businesses to global markets without suffering huge costs. The global
market is now easily reachable and readily available for simple business owners. Technology has
also enhanced consumer producer communication. It is now easier for business owner to
communicate with their customers through the help of communication Curran and Storey 2016.
With all this in place technology has also exposed the business into various risks. These
risks are the ones that makes small business to be exposed to various threats. The threats are
what is referred to as cyber security threats. Though cyber security threats have been reported by
various organization. This research only focuses on the risks that the cyber security have on
small businesses. The small business that undergo various threats. The cyber security threats has
led to small businesses endorsing various types of modifications in their daily operations.
The research looks at the possible solution of the different form of cyber security threats.
The three main cyber security threats for small business are; internet leak of crucial information,
use of opaque algorithms that lose visibility into the functioning and interaction of their systems.
Opaque algorithms also expose the business to unintended interactions. Lastly, the cyber security
threat that is also focused upon is the silencing of any exposure reports. The reports that warn

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about cyber security threats to a business owner is usually silenced before the information
reaches the small business owners.
2.0 Project objective
The project is developed in order to look at an analytic way of cyber security threats
having effect on small businesses. The project is therefore focused in finding the implication that
cyber security threats have to an institution. The projects are supposed to develop the various
type’s problems and how they have affected the operations of the businesses. The objective of
the project are;
Develop understanding of how the various types of cyber security threats affect the
operations of the business. This objective will be surrounded in trying to find out, how cyber
security threats are impacting on the development that technology is supposed to have in a
business set up but instead affects the operations of the business.
The project will also seek to find out the cyber security issues that affect the businesses
more. The ones that have grave effect to the businesses than others.
The project also will look into finding out mitigation processes that the business might
undertake to salvage the situation from the possible threats. The cyber security issues that are
developed and the various strategies that can be employed to help evaluate the security issues.
The project will also develop different literatures that talk about the cyber security threats
on small businesses. These literature review developed by the project can be used for future
references, in case a business owner is looking for mitigation ways of saving their enterprise.
The project also seeks to evaluate the various types of cyber security business threats.
Moreover identifying the business threats that are more real to a particular business opportunity
and the most fortunate affected operations by the particular security threats.

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3.0 The project scope
The project is based on trying to find out the possible effects of cyber security on
business. The project therefore requires a literature review that will form a primary deliverable
for the analysis that helps in highlighting the possible solution of such threats to this business
organizations. The project will also focus on giving the findings and recommendations that if
endorsed by the businesses will form a solution, either temporary or permanent to the cyber
threats. The project scope items will therefore include;
Cyber security threats risk analysis on business: The project considers as the main
problem. The project will therefore analyze various risk faced by the businesses due to lack of
cyber security. Being a primary factor the project will have to look at a good number of
diversified businesses. The analysis also includes prompt visitation on the benefits of technology
on the business. An in-depth analysis therefore follows of the risk the business is facing despite
the mentioned benefits.
Evaluation of the impact of cyber security threats; the project also looks to find the
impact that these threats have had on the operations of the businesses. The particular operations
include daily business operation and long term operations of the business. The project also seeks
to find out the impact of the business monetary terms. The project therefore will look into the
financials status of the institutions before and after the realization the cyber security threats.
Suggestions of probable solutions: the project after evaluating the various cyber threats.
The project will go further to find the probable solutions that can be used to reduce the cyber
security threats. The project will therefore find the solutions from previously affected business
and how they came up with a lasting solution. The project will also find out possible solutions
from IT experts and what they would do in case one is faced with one of three types of cyber

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security threats. The project also focuses on preventive measures. Preventive measures that when
undertaken there is reduction of cyber security threats in the business organizations.
The project will therefore involve small business owners as the primary stakeholders. IT
experts will also be engaged as the senior professionals in such a field. The project might also
involve various financial analyst of the business organizations.
Lastly the project is limited to small business enterprises but might at times used
established organization for references.
4.0 Literature review
4.1 Challenges of cyber security in business.
According to Tisdale (2015) many businesses have invested in the use of cyber facilities
to improve their business operations. The literature further recognizes that effective cyber
facilities have worked in favor of this businesses. Investment in cyber facilities have led to the
improvement of services to the customers. According to one of the customers investment in
cyber technology has made it easier for them to book services of the hotel any time of the day.
This is one proof of how cyber investment has led to the development of businesses. Another
customer confessed that it easier to make formal complaints through cyber enabled devices in
relation to the service provided by the business. Better enough easier payments methods have
also been developed through cyber enabled facilities. However with the development of web and
global technology operations. There is increased growth of cyber. Security threats. These
development of cyber security threat is one of the major problems facing businesses that invest
in cyber developments for prosperity of their businesses.
4.2 Overview of the cyber security issues and threats.

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There are three main cyber security issues. These security issues are based on the cyber-
criminal activities. These cyber-criminal activities have increasingly developed in the past
decade. The threats are developed from misuse of technology and the alignment of hacking
operations.
According to Chertoff and Simon (2015, the first type of security threat is one that
interferes with the financial systems, so that the cyber criminals can have their hands on the
money of the institution, without the institution knowing. These therefore leads to the loss of the
company’s profit that will eventually interfere with the profit margins of the company.
The second cyber security threat according to (Conti et al 2018.) is the use of cyber
threats to harm the reputation of the business. The criminals develop web based threats that harm
the legal operations of the business. These therefore destroys the operations of the business since
the customers might lose trust in the business due to poor reputation. The threats therefore
eventually lead to the business losses either way.
4.3 Various cyber security issues for business.
According to Rawat and Bajracharya (2015) the major issues and threats agents include
software malwares, lack of cyber training, absence of proper recover plan, lack of proper cyber
security policy by the enterprises and security general basics that might include settings. These
are the major causative agents for cyber security threats.
4.4 Impact on business enterprises and organizations
The presence of cyber security threats form major hindrances on the executions of
operations of the business. It does not only affect the functions of the organization but also on
financial stability and legal procedures of the firm too. The impacts can be divided into three
broad subsections that include;

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Economic cost impact caused by cyber security threat attack.
Reputational damage
Legal consequences of the cyber security attack.
Lee, Bhageri and Jin (2016) state that cyber-attacks are mostly done to achieve financials
losses of the target business. The various financial information are stolen so that monetary values
are lost from the business. The loss of corporate information and trading disruptions affect the
functionality of the business. This therefore affects the economic cost of the business. According
to Gupta, Agrawal and Yamaguchi 2016). The loss of corporate information affects the
economic management of the company. This information can definitely lead to loss of investors
and clients. Once the business has lost clients and investors then automatically affects the
economic cost of the business.
According to (Song, Fink and Jeschke 2017) reputational damage is easier done through
cyber-attacks than any other methods. A cyber-criminal might use the database of a business in
sending false promotional advertisements. The business shall have lost the reputation.
Reputational damage cannot be repaired within a short period. This is because customers are
likely to drop the business for another whose reputation is clean. The major factor of
development who are the clients is also lost. Therefore the business is not likely to develop.
Problems that arise from legal obligations are very common with cyber-attacks this is
according to the literature by (Carr 2016). The theft of information can when used to generate
copyright problems for the business. The business will therefore struggling to clear its name
legally. As they struggle with legal procedures, there is little or no time for business
development.
4.5 Possible solutions to the cyber security threats

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As noted by Arabo (2015), there are two possible solutions that can be developed for
cyber security threats. The ones that prevent the cyber-attack and one that act as a solution to
already committed attack. These methods can both assist in developing security measures for the
business.
Some of the preventive measures include;
Cyber security policy implementation. According to (Buckaz and Guven 2016), the
cyber-attack can be prevented if a non-penetrable wall is created. The wall therefore prevent the
sites from any external attacks. The policy also prevents any external person to view information
that they are not allowed to see from the business website. Therefore when the policy protects
the data, it prevent any external threats of cyber-attacks.
The second preventive measure is the use monitor systems for BYOD. According to
(Patrick and Fields 2017). The employees at the business can stay web connected. When they
stay connected they can easily detect any body that is causing security threats. The business
owner will therefore be required to install devices for every employee so that they monitor every
other website user.
The other two methods are recovery plans that seek to salvage the situation after an
attempted attack or a successful cyber-attack.
Data recovery plan. According to Mendel (2017) the growth of cyber security has made it
possible for IT experts to develop recovery plan for lost data. When an attack is done and data
has been interfered with, it’s possible for the business to recover the important plans through
installing of the data recovery plan with the help of an expert.
The other method of recovering from a cyber-attack is installation of basic security
features. This is the method that most business recover with from cyber-attacks as noted by

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(Fonseca and Rosen 2017). This method includes the development of three important cyber
features. These features include; firewall, authentication and authorization. The business is
therefore free to legally convict anyone who has used any of the walls and they are not
authorized to do so. The person can therefore help in further recovery of the lost data.
The review has focused on the major parts of the project that include; major cyber
security issues, their types, their impact on the businesses and organizations and the possible
measures that can be taken against technological cyber-attacks. These analysis is therefore
helpful in other parts of the projects since it broadens the scope of the problem. Most of the
literatures however focus on huge enterprise institutions, which collect a lot of annual revenue.
They however overlook small enterprise business that might be owned by less than one owner.
This is the main gap that the project seeks to achieve.
5.0 Research questions and hypothesis
Primary question
How does technological cyber-crimes affect profits of small enterprise businesses?
Secondary questions
 Do the small enterprise business use technology in their daily operations?
 The technology used in small business attract cyber-attacks? (Why and why not)
 Are the effects encountered in large enterprises the same as the ones encountered by
small enterprises in relation to cyber-attacks and cyber security threats?
6.0 Research design and methodology

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The project will explore qualitative research due to the nature of problem that we are
faced with. For purposes of validity and reliability this choice research design will ensure the
research is valid by using the appropriate methodology.
The project explores action research methodology. This method makes the research valid
as it will exploit findings in their appropriate context. The methodology is also appropriate since
the research is seeking to find the effects of cyber threats to small enterprise business. The
problem is therefore immediate and the focus is on small enterprise business. Therefore the
methodology chosen of action research is the best.
The research will choose a sample size from businesses that operate within the Central
Business District of major urban areas. The business owners from two businesses will be chosen
at random. Another sample size will also be picked from business that operate from the city
suburb areas. The IT experts will be chosen from any IT expert company. Focus will be on those
that work within the city urban areas and the ones operating from the city suburb areas.
6.1 Data collection method
The research main method of data collection is through interviews. Interviews will be
conducted to small business owners and their employees. A similar interview will also be
conducted to IT analyst in a way of trying to find their views.
The other method would be questionnaires. Questionnaires will be provide to the clients
of the business enterprise. This will help in getting their opinions over use of cyber in businesses.
If there are any benefits they can relate to or if there is none. Their recommendations if they have
any.
The project might also consider document analysis of various IT experts as a way of
collecting data.

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6.2 Data analysis
Since the data collected is rather qualitative, the analysis will coded for various themes
and meaning. After coding the analysis of the data collected will be hermeneutical.
Hermeneutical analysis will be used to derive the real meaning of the oral data that the
population sample gave. This will help in achieving reliability. Reliability will be achieved as
hermeneutic analysis makes sense of the object study and un- earths the underlying coherence
between the study and the assumption.
The independent variables in this case are the cyber threats attacks that causes change in
profits and loss for the small enterprise business. The dependent variables in this case are effects
that change with the introduction of cyber threat attacks. One of the dependent variables are the
profits made by the business. The relationship between the two variables is therefore causal. One
variable will cause an effect to the other.
7.0 Research limitations
The project will have limitation on how to determine the effects of cyber-attack except on
profit measurement. There are very few parameters that can be measured in order to determine
the direct effects of cyber-crime on small businesses. The parameters that include reputation and
economic cost do not really matter for this businesses. The main parameter for measurement is
profit and loss. These therefore limits the action of the research.
Profit and loss can be due to other features and not necessarily cyber-attacks. The profits
can fluctuate for small businesses due to other factors. Profits can fluctuate due clients or
employee behavior. These factors are not kept constant by the project. These therefore limits the
action of the research.