Key Insights for SMBs on Navigating Cyber Incidents: Lessons from CDK Global

Key Insights for SMBs on Navigating Cyber Incidents: Lessons from CDK Global

Recent cyber incidents at CDK Global have disrupted operations for thousands of car dealers across the U.S., forcing some to revert to manual processes. Here’s what small and medium-sized businesses (SMBs) can learn from this situation to better prepare for similar challenges.

1. Recognize the Critical Impact of Cyber Incidents

CDK Global provides essential software to nearly 15,000 car dealers, managing sales, payroll, and general office operations. The recent cyber incidents have severely impacted these businesses, highlighting the critical role of cybersecurity.

SMBs must understand the potential impact of cyber incidents on their operations. Prioritizing cybersecurity measures is crucial to protect your business from significant disruptions.

2. Develop Robust Contingency Plans

Many dealerships had to resort to pen and paper to carry out sales and repairs due to the software outage. This highlights the importance of having contingency plans for such disruptions.

SMBs should create and regularly update contingency plans. These plans should include manual processes for critical operations, ensuring that business can continue even when digital systems are down.

3. Invest in Comprehensive Cybersecurity Measures

CDK Global’s situation underscores the need for robust cybersecurity measures. Despite precautions, the company faced multiple incidents, showing that cybersecurity is an ongoing battle.

SMBs should invest in comprehensive cybersecurity measures, including regular updates, employee training, and robust password policies. Consulting with cybersecurity experts can help identify and address potential vulnerabilities.

4. Ensure Transparent Communication During Disruptions

During the outage, CDK Global provided regular updates to its customers. Transparent communication is crucial during such incidents to maintain customer trust and manage expectations.

SMBs should ensure transparent and timely communication with their customers during any disruption. Keeping customers informed about the situation, steps being taken to resolve it, and expected timelines for restoration is essential.

5. Partner with Reliable Vendors

The dependency of dealerships on CDK Global highlights the importance of partnering with reliable vendors. Having a single integrated system can simplify operations but also poses a significant risk if that system fails.

SMBs should carefully choose vendors, ensuring they have robust cybersecurity measures in place. Consider diversifying vendors to reduce risk and ensure your business can switch to alternative solutions if needed.