Report finds successful cyberattacks are causing significant operational disruption, delaying expansion plans and putting customer trust at risk for Irish businesses.
Irish SMEs that have suffered a successful cyberattack are losing almost a full working week in operational disruption, with many also reporting lost business opportunities, delayed growth plans and financial impacts.
That’s according to the latest Hiscox Cyber Readiness Report 2026. The research, based on a survey of 300 Irish businesses with fewer than 250 employees, found that organisations hit by a successful cyberattack experienced an average of 34 hours of operational disruption over the past 12 months.
“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”
The business consequences extend well beyond technical downtime. Among businesses affected by a successful attack, 36% said they lost business opportunities or partnerships, while 34% delayed growth, expansion or new business initiatives.
A further 34% reported a negative impact on financial performance, valuation or credit rating, and 32% postponed the adoption of artificial intelligence or other emerging technologies.
Explainer: How disruptive are cyberattacks on Irish SMEs?
| Question | Answer |
|---|---|
| What is the Hiscox Cyber Readiness Report 2026? | A study examining cyber resilience, cyber risks and cybersecurity preparedness among SMEs across 10 countries, including Ireland. |
| How many Irish businesses were surveyed? | 300 Irish businesses with fewer than 250 employees participated in the research. |
| Who conducted the research? | Wakefield Research conducted the survey on behalf of Hiscox. |
| How much disruption do successful cyberattacks cause Irish SMEs? | Businesses that experienced a successful cyberattack reported an average of 34 hours of operational disruption during the previous 12 months. |
| What percentage of affected businesses lost business opportunities or partnerships? | 36% of affected Irish businesses reported losing business opportunities or partnerships following a cyberattack. |
| How many businesses delayed growth or expansion plans after an attack? | 34% delayed growth, expansion or new business initiatives. |
| What financial impacts were reported? | 34% said a cyberattack negatively affected financial performance, valuation or credit rating. |
| How did cyberattacks affect technology adoption? | 32% delayed the adoption of AI or other new technologies after experiencing a successful cyberattack. |
| How many organisations link leadership performance to cybersecurity goals? | 36% of businesses affected by a successful cyberattack linked leadership compensation or performance measures to cybersecurity goals. |
| What actions did businesses take after an attack? | 34% increased their use of external cybersecurity expertise and 33% created or updated cyber crisis-response plans. |
| What is the biggest cybersecurity-related business concern among Irish SMEs? | 48% ranked reputational damage or loss of customer trust among their greatest business risks. |
| What other major business risks were identified? | 47% cited operational downtime or business interruption, 47% cited supply-chain or third-party disruption, and 46% cited regulatory compliance concerns. |
| How are Irish businesses investing in cyber resilience? | 68% are updating employee cybersecurity training, 57% are investing in cybersecurity software and 55% are hiring additional cybersecurity staff. |
| How common is cyber insurance among Irish SMEs? | 67% of Irish businesses surveyed currently have cyber insurance. |
| Why is cyber resilience important for SMEs? | Cyber incidents can disrupt operations, affect customer confidence, damage business relationships and delay investment or expansion plans. |
| What role does cyber insurance play? | Cyber insurance can provide financial protection as well as access to forensic specialists, legal advisers, crisis communications support and recovery expertise. |
| When was the Irish fieldwork conducted? | The survey fieldwork took place between 5 and 17 June 2026. |
| Which businesses were included in the study? | The Irish sample consisted of cybersecurity decision-makers in businesses with fewer than 250 employees. |
| How many countries were included in the global research? | The report surveyed 6,800 cybersecurity decision-makers and subject-matter experts across 10 countries. |
| What is the key takeaway from the report? | Cybersecurity has become a core business issue for SMEs, with cyberattacks affecting growth, operations, customer trust and long-term business performance. |
Cybersecurity takes a strategic role
“Cybersecurity is no longer simply a technology issue,” said Ciara Weldon, senior development underwriter at Hiscox Ireland. “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.”
The findings indicate that cybersecurity is increasingly becoming a boardroom issue rather than solely an IT concern.
More than one-third of businesses that experienced a successful cyberattack said leadership compensation or performance measures are now linked to cybersecurity goals. The survey also found that 34% increased their use of external cybersecurity expertise, while 33% created or updated cyber crisis-response plans following an incident.
Weldon said: “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.”
Customer trust emerges as a major concern
The report highlights growing concern among Irish businesses about the wider commercial consequences of cyber incidents.
Nearly half of respondents, 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% of businesses, while 46% cited regulatory compliance as a leading concern.
As SMEs become increasingly dependent on digital infrastructure, cloud services, payment platforms and technology partners, disruptions can spread beyond the organisation directly targeted by an attack.
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.”
Investment in resilience continues
Irish businesses are responding by increasing investment in cybersecurity measures and preparedness.
According to the research, 68% are updating cybersecurity training for employees, 57% are investing in cybersecurity software and 55% are hiring additional staff with responsibility for cybersecurity. The study also found that 67% of Irish businesses currently have cyber insurance in place.
Weldon said: “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 was based on research among 6,800 cybersecurity decision-makers and subject-matter experts across 10 countries. The Irish findings were drawn from a sample of 300 businesses with fewer than 250 employees, with fieldwork conducted in June 2026.
Image at top: Ciara Weldon, senior development underwriter at Hiscox Ireland
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