
Cyber Risk: A Business Imperative for Every Organization
A recent Forbes piece by Carrie Rubinstein, featuring insights from Julia Valentine of AlphaMille, offers an urgent wake-up call: cyber risk is no longer an IT problem — it’s a board-level, business-critical risk. AI-powered threats have made even small and midsize businesses prime targets, and the same applies to family offices, which are often lightly defended but hold highly sensitive financial and personal data.
Key Takeaways
✅ Cyber Risk = Enterprise Risk
Valentine emphasized that companies — including family offices — should treat digital exposure like any initiative that impacts revenue, cost, or risk. This is not something that can be delegated solely to IT.
✅ The Stakes Are Rising
The R.R. Donnelley ransomware attack led to a $2.125 million SEC settlement for internal control failures, showing regulators and shareholders now expect proactive cyber governance.
Cybercrime costs are projected to hit $10.5 trillion annually by 2025, with the U.S. alone facing $639 billion in yearly losses.
✅ Barriers to Preparedness
Valentine outlined why many organizations fail:
Seeing cybersecurity as a sunk cost, not a risk mitigator.
Lacking in-house expertise (few SMBs or family offices have CISOs).
Being overwhelmed by too many tools and vendor pitches.
Fear of operational slowdowns from security measures.
A reactive mindset — only worrying after a breach.
✅ The New Cybersecurity Playbook: 7 Essential Steps
Board-Level Governance
Cyber discussions must be regular agenda items. Create a Cyber Risk Committee or integrate oversight into board meetings.Asset & Attack Surface Inventory
Know your digital assets, including shadow IT and third-party tools. A live inventory is essential.Threat Intelligence & Monitoring
Adopt real-time threat intelligence and 24/7 monitoring. Managed Detection & Response (MDR) services are accessible even for small teams.Incident Response & Recovery Plan
Assign crisis roles, rehearse responses, and keep your disaster recovery plan updated and tested quarterly.Third-Party Risk Management
Vet vendors rigorously; require SOC 2 or equivalent proof of controls. Add breach notification clauses to contracts.Cyber Hygiene & Least Privilege
Enforce multi-factor authentication (MFA), patch software immediately, and ensure employees only access what they need.Culture & Training
Train everyone, including executives. Simulate phishing attacks, onboard employees with security training, and foster a mindset that “anyone can be targeted.”
Why It Matters
SMBs hold a disproportionate amount of private data, financial assets, and intellectual capital — yet often lack institutional-grade security. Overlooking cyber risk can result in catastrophic financial loss, reputational damage, regulatory fines, and the loss of trust with clients and partners.
Bottom Line:
Cybersecurity is no longer a back-office issue — it’s a fundamental business risk. A modern, proactive cyber strategy, integrated with board-level oversight and cultural buy-in, is the best defense for family offices seeking to protect wealth, privacy, and legacy.
Read the full article here: https://www.forbes.com/sites/carrierubinstein/2025/06/30/the-cyber-risk-smbs-cant-afford-to-ignore/