Why Spreadsheets Fail for Cybersecurity Risk Management
Many SMEs across Southeast Asia still rely on spreadsheets to manage cybersecurity risks. While spreadsheets are familiar and seemingly cost-effective, they create significant vulnerabilities and hidden costs that can expose businesses to devastating cyber attacks. Here's why it's time to move beyond spreadsheets for cybersecurity risk management.
Why Spreadsheets Fail for Cybersecurity Risk Management
The first and most obvious limitation of spreadsheets is their static nature. Cybersecurity risks evolve daily, yet spreadsheets rely on manual input and updates. This creates delays, inconsistencies, and blind spots. For example, if one team member forgets to update a column about a system patch, leadership may assume the vulnerability is fixed when it is still open.
Another problem is scalability. Spreadsheets may work for a handful of assets and risks, but as a business grows, the number of systems, users, and threats multiplies. Tracking dozens or hundreds of risks across multiple spreadsheets quickly becomes chaotic. Information gets duplicated, links break, and different versions of the same file circulate within the company. This not only leads to confusion but also increases the chance of mistakes.
Collaboration is another critical weakness. Cybersecurity is not the responsibility of one person or department. IT teams, management, finance, and even non-technical staff all have roles to play. Spreadsheets, however, are not built for real-time collaboration. While cloud-based versions such as Google Sheets improve accessibility, they still lack the structured workflows and controls needed for effective risk management. Without these features, tasks fall through the cracks and accountability becomes murky.
Spreadsheets also fail to provide meaningful analytics. Cybersecurity risk management requires more than just recording data it requires insights. Businesses need to see trends, track progress, and prioritize the most urgent risks. Spreadsheets can generate charts, but they are not designed to provide real-time dashboards or automated alerts. Leaders may not know about a critical vulnerability until it's too late.
Finally, spreadsheets introduce compliance challenges. Many Southeast Asian countries now have data protection laws, such as Singapore's PDPA and Malaysia's PDPA, which require businesses to safeguard personal data and demonstrate accountability. Regulators increasingly expect businesses to have structured risk management practices. Spreadsheets, with their lack of audit trails, security controls, and standardized processes, often fail to meet these expectations.
The Hidden Costs of Using Spreadsheets
One reason SMEs cling to spreadsheets is the perception that they are free. But while the software itself may cost nothing, the hidden costs of relying on spreadsheets for cybersecurity risk management can be significant.
First, there is the cost of wasted time. Manually entering, updating, and consolidating data across multiple spreadsheets consumes countless hours. Time spent managing spreadsheets is time not spent addressing real cybersecurity risks.
Second, errors are costly. A single mistake such as overlooking a vulnerability or miscalculating a risk score can expose a business to attacks. Studies consistently show that human error is the leading cause of data breaches, and spreadsheets are particularly prone to errors due to their manual nature.
Third, there is the cost of non-compliance. If a regulator investigates a data breach and finds that risk management was poorly documented or inconsistent, the penalties can far exceed the cost of investing in better tools.
What to Use Instead of Spreadsheets
The shortcomings of spreadsheets highlight the need for more robust, purpose-built tools. Fortunately, SMEs in Southeast Asia now have access to a growing range of affordable and accessible alternatives.
Cybersecurity Risk Management Software
One option is to adopt cybersecurity risk management software specifically designed to track, assess, and mitigate risks. These platforms offer features that spreadsheets cannot, such as automated risk scoring, real-time dashboards, workflow management, and built-in compliance reporting. Many are cloud-based, meaning SMEs can start small and scale as they grow.
Governance, Risk, and Compliance (GRC) Platforms
Another alternative is governance, risk, and compliance (GRC) platforms, which integrate risk management with broader compliance needs. While some GRC systems are targeted at large enterprises, lightweight versions are available for SMEs. These systems provide structured frameworks, ensuring that risk management activities are consistent and aligned with regulatory requirements.
Specialized SaaS Tools
For SMEs that cannot invest in full platforms, there are also specialized SaaS tools that address specific needs, such as vulnerability scanning, incident tracking, or compliance reporting. While these may not replace a complete risk management system, they provide far more functionality and reliability than a spreadsheet.
Importantly, SMEs should not assume that better tools always mean higher costs. Many vendors offer tiered pricing, with affordable entry-level plans designed for small businesses. Some governments in Southeast Asia also provide grants or subsidies to help SMEs adopt cybersecurity solutions, reducing the financial burden.
The Benefits of Moving Beyond Spreadsheets
Transitioning from spreadsheets to purpose-built tools provides several benefits that go beyond simple convenience.
First, it improves accuracy and reliability. Automated processes reduce the risk of human error, ensuring that critical risks are not overlooked.
Second, it enhances visibility. Real-time dashboards and reports provide leaders with clear insights into the company's cybersecurity posture, allowing them to prioritize resources where they are needed most.
Third, it strengthens collaboration and accountability. With structured workflows, tasks can be assigned to specific individuals, tracked, and escalated if overdue. This ensures that nothing is forgotten and that everyone knows their role in managing risks.
Fourth, it supports regulatory compliance. Many tools include built-in templates aligned with regional laws and international standards, making it easier to demonstrate compliance to regulators, partners, and customers.
Finally, it creates resilience. By moving beyond spreadsheets, SMEs gain the ability to adapt quickly to new threats, ensuring that cybersecurity risk management is a living, evolving process rather than a static document.
Making the Transition: Practical Steps for SMEs
For SMEs still relying on spreadsheets, the idea of switching to a new system may seem daunting. But the transition can be managed in a gradual, practical way.
The first step is to review current practices. Identify what data is being tracked, how it is updated, and where the pain points are. This will clarify the requirements for a new solution.
The next step is to explore available tools. Start with entry-level risk management software or SaaS solutions that align with your business size and budget. Many vendors offer free trials, which can help businesses evaluate functionality before committing.
Training is also important. Employees should be introduced to the new system gradually, with clear guidance on how to use it effectively. In many cases, the system itself will simplify tasks, reducing resistance to change.
Finally, SMEs should see this as an opportunity to embed cybersecurity into business culture. Moving away from spreadsheets is not just about technology it's about adopting a mindset that treats cybersecurity risk management as a strategic priority, not a box-ticking exercise.
Conclusion
Spreadsheets have their place in business, but cybersecurity risk management is not one of them. They are too static, error-prone, and limited to keep up with the fast-changing world of cyber threats. For SMEs in Southeast Asia, continuing to rely on spreadsheets for such a critical task is a false economy that can lead to costly mistakes and devastating breaches.
By embracing purpose-built tools whether comprehensive risk management platforms, lightweight SaaS solutions, or affordable GRC systems SMEs can gain the accuracy, visibility, and resilience they need. The shift does not have to be expensive or disruptive, but it does require a recognition that cybersecurity cannot be managed on outdated tools.