Navigating the Top 5 Technology Risks for Indian SMEs in 2025
As we prepare to step into 2025, Small and Medium Enterprises (SMEs) in India face an evolving landscape of technology risks that could significantly impact their operations and growth. While technology offers numerous opportunities for innovation and efficiency, it also presents challenges that SMEs must proactively address to safeguard their businesses.
Here, we explore the top five technology risks that Indian SMEs need to be vigilant about in the coming year.
1. AI-Driven Phishing Scams
The rise of artificial intelligence (AI) has revolutionized many aspects of business operations, but it has also given cybercriminals new tools to exploit. AI-driven phishing scams are becoming increasingly sophisticated, with attackers using generative AI to craft highly personalized and convincing phishing emails. These emails can easily deceive employees, leading to data breaches and financial losses. Indian SMEs, which often lack robust cybersecurity frameworks, are particularly vulnerable to these attacks. It is crucial for SMEs to invest in advanced cybersecurity measures and conduct regular training sessions to educate employees about the latest phishing tactics.
2. Multi-access Edge Computing (MEC) Vulnerabilities
Multi-access Edge Computing (MEC) is gaining traction for its ability to reduce latency and enable real-time decision-making. However, the adoption of MEC also introduces new vulnerabilities. The distributed nature of MEC means that data is processed closer to the source, which can create multiple entry points for cyberattacks. Indian SMEs must manage the complexities of distributed IT infrastructures, which can be challenging without adequate resources and expertise. Implementing robust security protocols and continuously monitoring the network for potential threats are essential steps to mitigate MEC-related risks.
3. Supply Chain Vulnerabilities
In today’s interconnected world, Indian SMEs are increasingly reliant on their supply chains for goods and services. This interconnectedness, while beneficial, also exposes SMEs to risks from their suppliers and partners. A cyberattack or disruption at any point in the supply chain can have a cascading effect, impacting the SME’s operations and reputation. To address this risk, SMEs should conduct thorough assessments of their supply chain partners’ cybersecurity practices and establish contingency plans to ensure business continuity in the event of a disruption.
4. Regulatory Compliance Challenges
The rapid pace of technological change often outstrips the ability of regulatory frameworks to keep up. Indian SMEs must navigate a fragmented regulatory landscape, ensuring compliance with various local and international laws. This can be particularly challenging for SMEs with limited legal and compliance resources. Failure to comply with regulations can result in significant fines and legal issues. Key regulations that Indian SMEs need to be aware of include the Information Technology (IT) Act, 2000, which governs cyber activities and data protection, and the General Data Protection Regulation (GDPR) for businesses dealing with European clients. SMEs should stay informed about the latest regulatory developments and consider seeking external expertise to ensure compliance with relevant laws.
5. Data Privacy and Protection
As Indian SMEs collect and process more data, ensuring its privacy and protection becomes critical. Data breaches can lead to financial losses, reputational damage, and legal consequences. SMEs need to implement robust data protection measures, such as encryption and access controls, to safeguard sensitive information. Additionally, staying updated with the latest privacy regulations and best practices is essential to avoid potential pitfalls. Regularly auditing data protection measures and conducting vulnerability assessments can help SMEs identify and address potential weaknesses in their systems.
The technology landscape for Indian SMEs in 2025 is fraught with risks, but with proactive strategies and continuous monitoring, these risks can be effectively managed. By staying informed about the latest threats and investing in robust cybersecurity measures, SMEs can protect their operations and ensure long-term success. As the saying goes, “prevention is better than cure,” and this adage holds true in the realm of technology risk management. Indian SMEs that prioritize cybersecurity and compliance will be better positioned to navigate the challenges of the digital age and seize the opportunities that technology offers.
Author: Mr. Anand Iyer, Group Chief Technology Officer, ICRA Ltd.
Disclaimer : Views expressed in the article are the personal opinions of the author.
