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South Africa beefed up its data protection laws with the introduction of the Protection of Personal Information Act (POPIA). While there are questions about the regulator’s effectiveness, businesses should not be complacent. The Act provides for serious fines that could be devastating to a small business.

In addition, a leak of customers’ private data will undermine consumer trust and tarnish a brand. In such cases, prevention is always better (and more cost-effective) than cure. SMEs should consult the relevant legal or risk experts to ensure they comply with the regulatory requirements of the Act—and that their technology is up to standard to prevent embarrassing data leaks.

Hidden risks of remote working

Work from home seems set to stay, whether in hybrid form or fully remote. While it may annoy some managers, the ability to work remotely can be a great source of resilience, enabling business continuity even in extreme conditions (as we saw during COVID-related lockdowns). However, remote work also introduces new risks. Sharing client data via unencrypted documents or spreadsheets leaves companies vulnerable to interception.

And ‘work from home’ isn’t always literally true, especially when employees need to find alternative workspaces during load shedding. Working at the local coffee shop can be enjoyable and productive, but the combination of an unsecured Wi-Fi network and curious gazes from fellow patrons is a cybersecurity minefield.

Businesses should also consider implementing a security standard like ISO 27001 to assess and close gaps in their security. However, these are generally expensive to implement and will not be suitable for all companies.

Tools to do more with less

With rising interest rates and lower consumer demand, businesses may find themselves with less access to productive capital to spend on marketing, expanding product lines, or investing in growth more generally.

In this climate, finding new efficiencies is an important stabilisation strategy. Technology can play a critical role by automating time-consuming functions and freeing employees to spend more of their time on productive activities (such as driving new business).

Flexible cloud-based accounting tools, CRMs, inventory management, and workflow systems can save time while beefing up digital security. There is even specialised software to meet regulatory and compliance requirements.

Of course, not all tools will be suitable for every business. An SME’s investment in any software package will depend on its operational budget, the number of employees, and the complexity of the work employees do. With that caveat in mind, an investment in technology can result in resilience and cash flow benefits in the medium and long term – and create a stronger foundation for growth when the economy picks up.

Holistic risk partnerships are key

Insurance against cyber risks is an important part of any business’s digital strategy. Choosing the appropriate insurance product is only part of an integrated risk mitigation strategy. SMEs may not have a dedicated CTO and CFO or an in-house risk team, but they can partner with an insurer that considers the company’s entire risk landscape and advises on a holistic risk management approach.

In other words, for SMEs, in particular, meaningful collaboration with a risk partner is one of the most effective ways to manage costs, mitigate risk, and position themselves for future growth.

The 2023 Bryte Travel Index – a compelling benchmark in terms of South African travel preferences and claims trends - shows just how costly medical expense claims can be when unexpected illness or emergency medical treatment happens. While many may never need any medical care, those who do can end up spending hundreds of thousands of rands. A trip to the emergency department, brief hospitalisation, or even urgent dental care could mean landing yourself in a lifetime of debt. So, for quality emergency care that doesn’t break the bank, ensure you have a comprehensive travel insurance plan.

      3. One man’s treasure…

Travelling with kids often involves packing (expensive) gadgets and gizmos to keep them (and yourself) entertained. Losing that iPad or portable gaming device can throw a real spanner in the works. So too can losing your expensive cameras, laptops, and worse – your entire suitcase. Some basic measures to protect your personal items can go a long way:

• Never pack valuables in your check-in luggage. The same goes for items you will urgently need, such as medication. As the Bryte Travel Index confirms, loss of valuable items or damage to luggage is a small but ever-present risk.
• Take note of how your travel insurance applies to lost or stolen items. There may be a per-item limit – i.e., your insurance pays a maximum rand value per item lost or damaged. It is therefore strongly advisable to consider personal items insurance for valuables such as phones, jewellery, or that designer handbag.
• Stroll the Riviera minus your finest. It may be tempting to pack your finest jewellery to wear on the French Riviera or to a New York Broadway premiere. But perhaps it would be more prudent to keep those items safely stored at home.

      4. SPF 100 - Summer fun protection factor

Before you slap on the sunscreen or your wetsuit, consider these:

• What’s covered? Your travel insurance policy will likely cover many of the activities you’ll encounter on a standard summer holiday. But be sure to check what exactly is insured and the conditions that apply (ask your broker or contact your insurer if you are in any doubt). For instance, a travel policy could cover scuba diving, but it could limit the depth you’re permitted to dive.
• Obey local regulations: Your fellow tourists may be driving scooters or operating water skis after sampling local wines – but that doesn’t mean you should too. You can put your life and those of others at risk. Also, your insurance policy won’t cover you if you break the law.