Network security: it's one area where you simply can't afford to take risks.

Every small business owner is familiar with risk. It's part of doing business. But let's face it, there are calculated risks with the potential to deliver huge rewards. Then there are operational risks you simply can't afford to take. Having inadequate network security is one of them.

Consider these dismal statistics:

* Computer viruses alone caused over $55 million in damage last year, nearly double the cost of any other security threat.

* Total economic damage, according to CIO magazine, was a whopping $17 billion due to attacks on U.S. computer and Internet servers.

* According to Gartner Group, 50 percent of SMEs will be compromised by a virus or attack in 2005.

* 94 percent of companies who suffer a catastrophic data loss won't survive, 43 percent don't reopen and 51 percent close within two years, according to the University of Texas.

To make matters worse, add hard-to-quantify losses such as loss of productivity, erosion of customer confidence or a tarnished corporate image and it's easy to see how security breaches to your network can devastate your bottom line.

What's more, any business with an Internet connection is at risk, no matter how big or small. If you think your company is too low profile to merit hacking, think again. Most successful attacks come from inside--from current or former employees.

The good news is you don't need to be a huge company with a dedicated IT staff to be secure. There are plenty of options and resources worth investigating.

Many small businesses outsource their network security, using pre-defined packages that meet specific business requirements. They help cut through confusion and are generally pre-tested, easily updated and can be rapidly implemented. Typical packages may include more obvious methods of protection like firewalls, virus blocking software and encryption.

A more comprehensive approach is even better, with improved performance options such as installation, 24/7 network monitoring, maintenance, technical support, management and automatic spam and virus updates.

Finding the right security partner will make a difference. It could be an individual IT consultant, a boutique service specializing in network security or a larger service company that offers security as part of a more comprehensive package. Get to know their track record and experience with network security and your technology.

With so much at stake, it's important to protect your network now. Network security may be the most important investment you make in 2005. Because it's not a matter of if you suffer a breach, but when.

RELATED ARTICLE: Did you know?

The threat of cyber attacks is dramatically increasing? In 1998, 50 percent of businesses surveyed in the CSI/FBI Computer Crime and Security Survey reported no downtime related to such attacks; in 2004 only 6 percent claimed no downtime. Small companies are even more vulnerable to attack and the impact is more devastating to their businesses.

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Know what you've got to lose ...

* Identify data assets stored on your computer/network and prioritize as they relate to your business success.

* Including lost productivity, determine economic impact of losing all your data (Note: It typically takes 30 hours to replace just 20 Mb of data), losing your Website/operating systems for 24 hours.

Now keep it safe ...

* Seek professional help in analyzing your network vulnerabilities and developing a security plan. Stick with someone you trust.

* Find and fix vulnerabilities.

* Back up files frequently, preferably on and offsite.

* Update, update, update--automatically if possible. In other words, use it or lose it.

MarkWayne is executive vice president of marketing at Southfield-based LDMI Telecommunications, a Silver-level member of the Detroit Regional Chamber.

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