So we all know what the economy is, right?  But how much do we know about economics?  A survey in 2016 asked the UK public if they felt “politicians and the media talk about economics in an accessible way”.  12% answered yes.

What is economics?  The simple definition is ‘the study of the production, distribution and consumption of goods and services’.  Which sounds pretty dull.  It gets more relevant when you look at the two scales of economics – small and big.  Microeconomics looks at the small end, individuals, households, small businesses.  Macroeconomics deals with the whole economy, looking at big issues such as growth of the economy, inflation, unemployment and such like.

The basic problem that economics seeks to deal with is that us human beings live in a world where we have unlimited wants – and limited means.  This is the basis of our standard of living.  If we (on the macro scale) can increase productivity, use limited resources more efficiently, we will (in our micro world) have a higher standard of living.

How to achieve this is the subject of a continuing debate around two conflicting theories.  Classical economic theory says that free markets are the best way to allocate those scarce resources.  Government becomes the referee in this, not a player.  On the other hand, Keynesian economics (named after John Maynard Keynes, a famous economist who died in 1946) argues that you can’t rely solely on markets alone and that government must step in from time to time and help allocate resources efficiently.

In looking at all of this, the basic building blocks are labour, and trade.  Because we can’t be experts in all things, we specialise – and then trade our skills to make use of other’s expertise.  This applies to both the micro and macro level.  If we have skills as, say an accountant, we will always need the skills of a plumber when the heating breaks down.  On a national scale, we can’t grow lettuces all year round so we import them, exporting our expertise in financial services – which achieves some sort of balance of payments, positive or negative.

Economics explains the way we live our lives.  We may not be experts in things like money flow or capacity utilisation but we all know how we can afford to live and how we spend our money.  You might not think you know what economics are, but actually – you do.  And to find out more, in a way which is clear, and real, using understandable words, check out the economy website site here.

Data breaches are big news now.  With the introduction of GDPR, the possibility of companies being hit with substantial fines has turned cyber security into a mainstream business risk issue – no longer is it a technology issue.

But is cyber security a wide-spread problem?  If you’ve not been affected, you may well think it’s a bit of a storm in a teacup.  In fact, if your business has not been affected by a data security breach in the past year, you are in the minority.  52% of businesses in the UK had some form of cyber security breach in the past year.

It’s no wonder.  Cyber criminals use a bit of kit called an exploit kit to attack vulnerabilities in systems, to distribute malware and other dodgy dangerous things.  Yet a staggering 99% of computers are vulnerable to exploit kit attacks.

If the amount of cash invested in cyber security is an indicator, then businesses still don’t see this as a high priority.  In 2017, small businesses in the UK invested £2,600 each in their cyber security.  Yet the total cost to UK business of cyber security breaches in 2016 amounted to approximately £30 billion.   Despite the size of the risk, only 25% of small firms gave their staff training in cyber security in 2017.

This is particularly relevant when you look at the causes of data security incidents.  Malware caused just 14% of incidents, with theft responsible for 22%.  Top of the league with 37% are employees, generally down to their own negligence.

This points to the importance of creating the right culture in your business, where education and awareness are critical aspects in helping protect the integrity of your cyber security.  You’ll also need to look carefully at how your staff work, as much as what they do.  If you have tight security protocols at work, yet staff work from home or remotely, then they may well be bypassing the very procedures you have put in place.