How to Manage the Risk of Cyber Attacks

i3 Business Solutions is a first-generation family business owned and run by Mike Ritsema, and his son, Marcus. Founded in 2004, the business is headquartered in Grand Rapids and has offices in Farmington Hills. In honor of Tech Week GR 2023, they have provided Member Insights on Cybersecurity for family Businesses.

i3 Business Solutions becomes or assists the technology department for almost 100 companies and 4,000 end users in the State of Michigan.

Cybersecurity Threat

Despite layers of cybersecurity protection, every month we continue to see compromises to Michigan businesses’ technology. How can this be?

According to the Verizon 2023 Data Breach Investigations Report (DBIR) 50% – that’s half of all cybersecurity incidents are due to social engineering. That means mistakes by the ‘human firewall.’ Furthermore, 74% – that’s ¾ of all breaches involve the human element – again, that’s mistakes by people in our companies. Human error.

The three primary ways that cyber attackers access organizational data are:

• Stolen credentials
• Phishing – whale or spear phishing
• Exploitation of vulnerabilities.

The Microsoft image displayed is an example of mistakes people make on a regular basis.

“Oh, I need to login again to confirm my account,” we think.

“Oh, I have a security alert and have to confirm my identity,” we click away as we rush through our day.

Clicking on the fake link and entering my login, password, and 2-Factor authentication hand our credentials to the threat actors. They’re going to work.  They’re moving around in my network or Microsoft 365 or Google Business Suite account. They’re in there and will lay in wait for weeks or months – watching, learning, scheming, planning the way they’ll exploit the information.

More and more, cybercriminals are creating near perfect narrowly targeted emails directed at owners, executives, finance, and technology professionals.  We call this whale or spear phishing.

Protection

That socially planned targeted attack means that all the firewalls and antivirus in the world can’t stop our employees from making a mistake! We must figure out how to protect our businesses from ACH mistakes, ransomware, and data exfiltration.

In cybersecurity we say it’s not if you’ll be hacked but when you’ll be hacked. Sad but true.

Action:

What are the top 7 things we can do to protect our businesses?

1. Test & educate your team using a structured cybersecurity phish testing and training system.
2. Implement Multifactor Authentication (MFA – 2-Factor) across ALL cloud or online systems – especially email.
3. Implement Multiperson Authentication within your financial controls. That is, any change to ACH checking and routing account numbers or payroll data must be confirmed by a second person and a phone call to a known number to hear a (known) person’s voice.
4. Implement Endpoint Detection & Response (EDR) which is the next generation antivirus that not only protects our PCs, Laptops, Macs, and servers – but also detects and automatically responds to threats.
5. Review, manage, and deactivate former employee accounts and administrator rights across all relevant systems.
6. Buy cybersecurity insurance.
7. Confirm that you have a discrete offsite air-gapped backup to your most important information and data. Can you actually restore from those backups?

Responsibility & Risk:

Business owners, partners, executives, and managers focus on 4 business functions:

• Profitability – sustainability
• Productivity – efficiency
• Differentiation – value proposition
• Risk mitigation.

For me, risk mitigation is the highest on that list. We manage many risks in business: financial, physical, employee, and financial are just a few. During the Great Recession 15 years ago and the 2020 Covid-19 pandemic, managing the financial risk of i3 Business Solutions was my highest priority. We manage risk with various controls and review processes to assure consistent operation and growth.

Your IT Manager or technology provider are the stewards of your technology risk. You, the family business owner, partner, shareholder, or executive team own the risk.

Collar your IT Manager or technology provider and ask the above seven questions. Oh, a couple of them go to your Finance Manager or accounting assistant. Copy / paste and email the list to the appropriate individuals.

There are 18 controls and 153 safeguards in the Center for Internet Security’s cybersecurity framework. Get started today by asking the above 7 questions. Consider a wider cybersecurity assessment if you’re more concerned.

 

It’s officially Tech Week in Grand Rapids! The non-conference conference is designed to showcase the region’s vibrant tech community, and we’re excited to share insights from a few of our family business members in this fast-paced industry.

We had the pleasure of speaking with Ben Kuncaitis from K Group Companies, a second-generation family business that has been in the technology space for over 40 years. Ben shared his insider insights on how the industry has evolved, their company’s history, artificial intelligence, and how businesses can prepare for the constantly changing industry.

About K Group Companies

K Group Companies has a rich family history, dating back to 1979 when Ben’s father, Mike Kuncaitis Sr., founded the first of the K Group Companies. Mike Sr. had already been serving in the tech industry and saw a path forward to launching his own firm. 

At the time, the main business consisted of supporting large mainframe computers, programming, and maintenance. They were “machines the size of a room,” explained Ben. “We had a division of our business that even fixed typewriters at one point.” Evidently, the industry has evolved significantly since their founding days.

When asked why his parents chose to work in the tech industry, Ben responded, “I think they saw it as the future. I think he was wise enough to know that.”

Ben, alongside two of his brothers – Chris and Mike, Jr.- have since taken  ownership and operation of the companies. As Ben recalls, he and his siblings were integrated into the business early on.  “I would say it’s in us. Tech brings a lot of challenges, and you have to like change. If you don’t like change, you’re in the wrong industry. He’s always taught us to run at challenges, not run from them.”

According to Ben, his father “had a high business acumen.” As Mike Sr. continued to build the company’s foundation, he prided himself on creating a true partner relationship with his clients by being their trusted tech advisor and consultant. To this day, this valuable legacy rings true with K Group Companies and how business is done. “We’re able to meet a client at their level and scale with them as they grow, by leveraging technology,” explained Ben. 

Industry Insights

In their more than forty years in business, a lot has changed in the industry. “As far as going from where the supercomputer was the size of a room, to where it can basically fit in the palm of your hand. That’s quite a swing.” Naturally, the landscape shifted alongside the structures themselves.

One industry shift is the focus on and importance of cybersecurity. This is an ever-changing topic and is one of the fastest moving areas of technology. “It’s not a matter of “if”, but “when”, there will be a breach,” said Ben. “A breach is going to happen, so it’s important to put yourself in a position of strength, in the healthiest way possible.” 

K Group Companies prides themselves on their ability to partner in this area with their clients, by embracing change and delivering sustainability. As Ben explained, “Bringing solutions that provide enablement for people and their businesses to achieve their goals” is what drives them as a business and as a family. 

 K Group’s Evolution

To support this, the company recently rebranded as K Group Companies, effectively combining their four primary divisions under one umbrella.

These divisions include Standard Computer Systems Inc., Riverview Service, K Data Systems, and Data Consultants. This approach allows them to provide clients with finely tuned solutions, provided by their team of highly skilled, experienced, and specialized professionals.  

The unification of their brands brings better alignment to their new divisions in the previous individual companies, as well as making their services more accessible to customers that traditionally work with one or more of the teams.  

Through internal growth with new ventures and acquisitions over the years, K Group Companies can provide services for about anything pertaining to technology.

Artificial Intelligence

With all the buzz around artificial intelligence, we’d be remiss not to touch on the potential impact for the industry. From Ben’s perspective, “There is good AI and there is bad AI. All of it as far as I’m concerned is here to stay.”  Whether we realize it or not, most of us take advantage of A.I. daily.

For the family business, “it’s all about balance.” While they employ artificial intelligence to help with things like job postings and basic marketing tasks, accountability and balance in its use is key, Ben says. “Don’t be hands off. You want to pay attention and make sure it represents what you want.”

There are still some growing pains and certainly limitations of the controversial innovation. For instance, simple things we understand as humans may not be possible for robots to grasp. Overall, given the constantly evolving nature of the technology, “At this point at least, there has to be a great amount of accountability,” Ben expressed.

West Michigan & Growing Tech Hub

Tech Week GR is all about showcasing the vibrant tech community in the region. While the benefits of this are ample, Ben acknowledged that being a tech leader “attracts the next generation to build here.” Their investment in the area helps contribute to a healthy workforce and economy.

Ben speaks to the growth of tech companies in West Michigan by comparing it to the growth in the region overall especially through the diversity of robust industries in West Michigan. From manufacturing, healthcare, agriculture, finance and logistics, these industries have a significant presence here and they create opportunities for unique

technological needs and support, Ben shared. As these sectors continue to grow in West Michigan, so will their need for specific technologies.

The access to education from local universities has helped manage the talent needs as the industry grows. “There is a lot of tech talent,” Ben explained. Even the various tech centers, ISD’s, and non-profits focused on technology help support the growing industry.

Security and AI, Ben predicts, is the area in the industry that will likely continue to grow most quickly. Given the rapid evolution of technology, it’s no surprise that the need for security is expanding and changing swiftly alongside it.

How to Keep up with Tech as a Business

Planning for technology can take time, Ben explained. At K Group companies, they work with their clients to “grow their technical maturity.” By breaking the company’s needs down into a “1-year, 3-year, and 5-year plan” they can help companies accomplish their tech goals. Because it is a capital investment, planning for it and having conversations about what technological tools are needed in the future helps. “Otherwise, this can be more of an emotional decision vs. a logical one,” Ben shared.

There are assumptions that family businesses can be slow to adopt new technologies and innovate. When asked how family businesses or any business can prepare, Ben provided a few steps:

1. Meet often with leadership
2. Plan your technological needs
3. Be intentional with your budget and forecast your technology budget as a whole
4. Enlist a trusted advisor

Much like technology itself, the family business K-Group Companies has consistently expanded and evolved along with the industry.

For additional cybersecurity tips for your business, K Group Companies has provided a checklist below to show some of the important solutions and security measures that can help protect your business.

Cybersecurity Solutions Checklist here.

 

Family Business Alliance member, Doyle and Ogden, is a 3^rd generation family-owned insurance company in West Michigan. This year, they are commemorating their 65^th business anniversary which is no small feat. According to the McKinsey Institute, the average lifespan of an S&P 500 company is about 18 years, so celebrating these impressive milestones is important. Especially when there is no one-size-fits-all approach to family business.

To honor and celebrate our members who have achieved “Milestone” anniversaries, we are sharing their family business history and a few of the milestones that got them to where they are now. Let’s take a look at what third generation family member, Shannon Heads, has to say about the family journey 65 years in.

 

How did the family business begin?

In 1958 my grandparents welcomed their 11^th of ultimately 12 children, my dad, Mike Doyle. At the time, my grandfather, Del Doyle, was working as an adjuster for Wolverine Mutual. With that any mouths to feed, my grandpa decided to find an additional source of income. That is when he decided to open his own insurance company, and several years later, he also started a travel agency.

Over the years, more of the family members got involved with the travel agency than the insurance company, as it is a more glamourous industry. At the time, only one of his sons had decided to go the insurance route. However, when my grandfather passed away in 1984, my father, Mike, was called back from the other side of the country where he was living at the time to help his brother run the company. I personally worked for an insurance company for more than six years prior to joining the family insurance agency in 2014.

What’s been most surprising about your family business journey so far?

Being in the family business has made me feel even more connected to my grandfather than I ever have been. He started the company and passed away shortly before I was born, but being here every day to help continue his legacy has been so impactful. It continues to strengthen the thought of how blessed you can be both with the family present in your life now and the legacy of those who no longer are.

If you could go back in time, what’s one piece of advice you’d give yourself?

To breathe and know you have time to accomplish all your goals and they won’t happen overnight, life is a marathon.

In Doyle & Ogden’s 65-year history, what do you identify as the family business’s most important contribution?

The creation of our family foundation and the work we have done in the community to give away thousands of coats to children over the last 13 years.

All photos are courtesy Doyle & Ogden. The interview has been edited for length and clarity.

Family Business Alliance strives to help family businesses with the tools, resources, and connections to help businesses succeed. Learn more about our resources including Leading Forward, Succeeding in Succession, and Navigating Governance that help to advance family business in our community.

This feature is part of our Member Anniversary Program. For more information or if you are interested in exploring opportunities to be featured, please email aislinn@fbagr.org.

Recently, FBA member, WM Uniform, announced their partnership with Wildman Business Group, a family-owned, Indiana-based company. The two family businesses share parallel histories, values, community commitments, and together have 130 years of history in the industry.

We sat down with Patrick Van Tuinen and Josh Wildman, both third generation family business leaders of their respective family companies to learn more about the partnership and what it means for their businesses.

About WM Uniform

Gordon Van Tuinen founded West Michigan Laundry in 1963 which served as a laundry and dry cleaner for personal apparel serving the Holland area. He quickly began expanding, moving into the commercial space with uniform and linen rentals. Gordon’s sons, Ken and Tom joined the business, in 1974 and 1983, respectively. They continued growing and innovating with several additions and investments in automation in the following years. By 2010, WM Uniform had fully transitioned to the third generation of leadership. The company now services areas throughout Michigan.

About Wildman Business Group

Upon returning from serving in WWII, Rex Wildman purchased a local dry cleaner in 1952 which would eventually become Wildman Business Group. In 1977, Rex’s son Brent joined the business and branched out into the industrial uniform industry. The company continued to grow through acquisitions and vertical integration under strategic leadership and succeeded to Josh Wildman in 2011. Today, they offer services ranging from uniform rental, bathroom hygiene products, deep cleaning, mat laundering, rental, and more throughout the Midwest.

Strategic Partnership: A New Transition

What began as an industry connection eventually blossomed into a friendship and celebration of common values. “Customer loyalty, relationships, honesty and integrity and above all doing business the right way” are at the core of each business, said Josh.

To advance their family business vision, the Wildman Business Group began a series of smaller acquisitions a few years back, and it became clear that WM Uniform would be a perfect fit for their portfolio.

When the Van Tuinen family began discussing succession as key leaders were approaching retirement, given the strong M&A environment following the COVID-19 pandemic, they also considered an acquisition. However, it was only an option with Wildman because of their shared values. The Van Tuinens wanted to ensure stability and continuity of care and service for their employees and customers.

Ultimately, the possibility for WM Uniform came down to timing. “We didn’t know if that would be an opportunity, but if you don’t put it on the table, you don’t know,” Josh Wildman shared. “We had an initial conversation while Patrick and his cousins were discussing succession planning. It became clear that we could be stronger together.”

In May 2023, the two companies announced their strategic partnership, making WM Uniform a division of the WildmanBusiness Group. Maintaining the same name, values, and customer service, WM Uniform is carrying the family’s legacy and team forward through the partnership.

Fulfilling the Family Business Vision

To both families, the partnership is more than an acquisition, and it will help them achieve their family business goals. It allowed Patrick to continue the business with the Wildman family while his cousins could retire. “I will be staying on, hopefully for years to come, and our fourth-generation family member plans to stay on. He is early in his career, but he has…gotten excited about staying on board,” said Patrick.

For the Wildman family, their 200-year vision means they are committed to being a family-owned business for centuries to come, and partnering allows them continue making business decisions for the long-term. The acronym “W.I.L.D. – “World Influencers Living Differently” guides their decisions, Josh said, and stewardship is about changing lives in the communities where they serve and work.

The Wildman Business Group approaches acquisitions with the goal of continuing the brand and legacy of the company, which is crucial to many family businesses. “You have a choice. You don’t just have to sell your company to the larger national or private equity. Together, we create synergies that benefit the combined organization,” explained Wildman. As part of this strategy, having family involved is a positive. “We want them there because that is the legacy. If it’s a healthy family situation, it’s going to be a win-win.”

What’s Next for WM Uniform?

For now, the WM Uniform team is focused on continuing the relationships they have in West Michigan. “There are more opportunities, benefits, products, and services that we can provide to our customers, and they are ready for them,” said Patrick. Additionally, by partnering, WM Uniform can grow with their customers who are also expanding within the region.

Josh shared that they too are excited for what this could mean for their overall business. “The WM Uniform team is doing some very unique, disruptive things such as service without contract. We are excited to learn more about what that could mean in a broader sense for our overall strategy,” among other features from WM Uniform.

The Holland-based business has an average employee tenure of 10 years, and both leaders are passionate about continuing this. “We truly want to be a destination employer. If you work for WM Uniform, they are going to treat you well, they are going to invest in your career, and you can feel good about the purpose you’re working for,” said Josh.

What’s Next for Family-Owned Businesses?

When asked what’s next for family-owned businesses, Patrick and Josh agreed: family businesses are not going anywhere.

Patrick: “We have 12,000 combined customers and 90+ percent of them are family businesses, that’s who we choose to do business with.”

Josh: “The majority of the economy is still based on companies like WM Uniform and ours.” Because family businesses can make decisions for the long term and tend to “put the people above the profit…it can be a catalyst to help our nation recover what got us to where we are,” expressed Josh.

Family Business Alliance strives to help family businesses with the tools, resources, and connections to help businesses succeed. Learn more about our resources including Leading Forward, Succeeding in Succession, and Navigating Governance that help to advance family business in our community.

All photos are courtesy WM Uniform and Wildman Business Group. This interview has edited for length and clarity.

Written by Aislinn Teachout

If you are interested in exploring opportunities to be featured, please email aislinn@fbagr.org.

Family business success is different for every family-run entity. There is no one-size-fits-all approach.

To honor and celebrate our members who have achieved “Milestone” anniversaries, we are sharing insights into their business journeys. In our first highlight, read what second generation leaders, Todd and Brent Van Haren, share as they reflect on the 30th anniversary of SecurAlarm.

About

SecurAlarm is a second-generation, family owned business located in Grand Rapids. They specialize in providing comprehensive commercial security services – from cyber security, building security, and more. They proudly address the risks and concerns of their clients from physical property to business continuity.

Where and how did the family business journey begin?

It began in the heart of another family business. Our father, Pat Van Haren, began his career teaching but quickly realized it wasn’t his passion. He shifted to wiring houses and businesses with his dad who was operating a small electrical business, Van Haren Electric. It quickly grew into a successful electrical contracting business defined by high quality people and installations.

Gloria Lubben joined Pat and his brother, Brian, to launch SecurAlarm Systems, Inc as a subsidiary to Van Haren Electric. At that time, there was a gap in the market for delivering complex solutions with high level quality. They cared enough and believed they could do better in protecting what matters to businesses. This is why we exist today.

What’s been most surprising about your family business journey so far?

The generosity of other family businesses and how invested they are in seeing each other succeed. We have learned so much from our fellow FBA members through Peer Groups, events, workshops, and other connections. While each business is different from a family/corporate structure and industry perspective, it’s amazing the similarities and challenges we share.

If you could go back in time, what’s one piece of advice you’d give yourself?

Enjoy the time with prior generations. Capture their story and preserve it. It has shaped so many aspects of who we are. While some aspects might not be as favorable as others, try to understand and leverage them.

Also be intentional about including all family members (spouses, siblings, parents, children, etc.) that aren’t directly involved in the business. Family can be a huge strategic advantage and it’s important to keep everyone informed and engaged.

In SecurAlarm’s 30-year history, what do you see as the family business’s most important contribution?

Remaining dedicated to why we exist: We Care, So We Protect. It drives our decisions, how we measure success, and how we serve our community, team, and clients.

We are in a rapidly changing cross section of industries (construction, security, and technology) and we look to our WHY whenever we’re at a crossroads. We engage with empathy and a desire to see our team, clients, and partners succeed. We invest significant energy into making sure whoever we encounter feels cared for by listening, confronting brutal facts, and taking action on whatever is holding us back. Because of this, our team members tell us they are better individuals, spouses, siblings, friends, and leaders. Our clients trust us and lean on us for guidance.

What do you identify as a pivotal change throughout the business’s history?

Over the last year, SecurAlarm has embarked on a business model shift, which we are still in the midst of. We are shifting our focus from products to services because we believe security is so much more than technology and transactional relationships.

We want to align technology, procedure, and training unlike any other security integrator out there. We want to deliver personalized, comprehensive, and strategic plans and solutions to our clients, who we think of as partners. So much change is required, and it will be a long journey, but we know it will allow us to better serve our team and clients for another 100 years. Why the shift? It goes back to our Why, of course! We Care, So We Protect.

All photos are courtesy SecurAlarm.

This feature is part of our Member Anniversary Program. For more information or if you are interested in exploring opportunities to be featured, please email aislinn@fbagr.org.

Family Business Alliance strives to help family businesses with the tools, resources, and connections to help businesses succeed. Learn more about our resources including Leading Forward, Succeeding in Succession, and Navigating Governance that help to advance family business in our community.