Dublin, Ireland, 15 September 2026 – Successful cyberattacks are costing affected Irish SMEs an average of almost a full working week* in operational disruption and placing additional pressure on growth, investment and commercial opportunities, according to the Hiscox Cyber Readiness Report 2026.

The research, conducted by Wakefield Research among cybersecurity decision-makers in 300 Irish businesses with fewer than 250 employees, found that businesses experiencing a successful attack reported an average of 34 hours of operational disruption across the previous 12 months.

The consequences extended beyond the immediate interruption to systems and services. Among Irish businesses affected by a successful attack:

– 36% lost business opportunities or partnerships

– 34% delayed growth, expansion or new business initiatives

– 34% suffered a negative impact on financial performance, valuation or credit rating

– 32% delayed the adoption of AI or other new technologies

Ciara Weldon, Senior Development Underwriter, Hiscox Ireland, said: “Cybersecurity is no longer simply a technology issue. For an SME, losing almost a full working week to disruption can mean delayed orders, missed opportunities, pressure on cash flow and valuable management time being diverted away from customers and growth.

“Smaller businesses often face many of the same sophisticated threats as larger organisations, but without the same depth of in-house cybersecurity, fraud-prevention or compliance resources. That makes preparation, clear responsibilities and access to the right support particularly important.”

Cybersecurity Moves into the Boardroom

The report also indicates that responsibility for cybersecurity is becoming more firmly embedded at leadership level.

More than one in three businesses affected by a successful attack, 36%, linked leadership compensation or performance measures to cybersecurity goals. A further 34% increased their use of external cybersecurity expertise, while 33% created or updated cyber crisis-response plans.

Weldon continued: “Business leaders do not need to become cybersecurity specialists, but they do need to understand the potential consequences of an incident and ensure clear responsibilities, appropriate controls and tested response arrangements are in place.

“For SMEs, responsibility for cybersecurity may be shared across leadership, operations, IT and trusted external advisers, which makes clarity around roles and response planning particularly important.”

Trust, Continuity and Commercial Relationships at Risk

Across the full Irish sample, 48% ranked reputational damage or loss of customer trust among their greatest business risks.

Operational downtime or business interruption and supply-chain or third-party disruption were each identified by 47%, while 46% included regulatory compliance among their leading concerns.

The findings reflect the growing reliance of Irish SMEs on digital systems, cloud services, payment providers and external technology partners. An incident affecting a supplier or service provider can disrupt a business even where its own systems have not been directly compromised.

Weldon said: “The wider impact of an attack can continue long after systems are restored. A cyber incident can affect financial performance, business relationships, customer confidence and the ability to move forward with new investment or expansion.

“That is why cyber resilience needs to be treated as a core business discipline rather than an issue owned solely by the IT department.”

Businesses Investing in Resilience

Irish businesses are responding to the evolving threat environment:

• 68% are updating the cybersecurity training provided to employees
• 57% are investing in cybersecurity software
• 55% are hiring additional staff to manage cybersecurity
• 67% currently have cyber insurance

Weldon added: “The businesses making the greatest progress are those that treat cyber resilience as a combination of people, technology and process. For SMEs, that does not necessarily mean complex governance structures or major technology investment. Clear responsibilities, practical employee guidance, proportionate controls and a tested response plan can make a meaningful difference.

“Preparation is also about more than trying to prevent every possible attack. Businesses need to know how they will respond, who they will contact and how they will restore operations quickly.

“Cyber insurance should be considered as part of a wider resilience strategy. Alongside financial protection, its value can include rapid access to forensic specialists, legal advisers, crisis communications support and recovery expertise when time is critical.”

The Hiscox Cyber Readiness Report 2026 is available at https://www.hiscox.ie/hiscox-cyber-readiness-report-2026

ENDS

*Based on a seven-hour working day.