Latvia’s Cybersecurity Landscape: Regional Disparities and Growing Threats
Cyber threats are a growing concern for businesses across Latvia, with slightly more than half of companies regularly monitoring and assessing their cybersecurity posture. However, a recent survey by LMT reveals significant disparities in cybersecurity awareness and practices, particularly between companies of different sizes and across various regions of the country.
Regional Vulnerabilities: Zemgale and Beyond
The Zemgale region presents a particularly concerning picture. Even as 100% of large enterprises in Zemgale regularly monitor cybersecurity, this figure drops to 45% for small businesses and a mere 28% for micro-enterprises. This trend mirrors the national pattern: smaller companies consistently demonstrate lower levels of cybersecurity vigilance. Similar patterns are observed in other Latvian regions, highlighting a systemic issue.
Employee Training: A Critical Gap
Attitudes towards employee training on cybersecurity and data protection risks also vary considerably. Pieriga exhibits the widest gap, with 44% of small companies and 88% of large companies actively informing and training their employees. In contrast, even large companies in the Latgale region present a lower level of engagement, with only 56% of respondents prioritizing these issues.
The Risk to Small Businesses: A Disproportionate Impact
Mārtiņš Kalķis, head of LMT’s Cyber Security Development Department, emphasizes that cyberattacks are not exclusive to large organizations. Small and medium-sized businesses (SMBs) are increasingly targeted, facing reputational damage, financial losses, and operational downtime. For smaller companies, a successful cyberattack can be particularly devastating due to limited financial resources to recover.
Supply Chain Risks: A Gateway to Larger Organizations
Kalķis also points out the interconnectedness of businesses. Many small companies serve as crucial partners to larger organizations, making them potential entry points for attackers seeking to infiltrate larger systems. A breach in a smaller supplier can therefore have cascading effects.
National Security Implications
In the context of current geopolitical tensions, cybersecurity is increasingly recognized as a matter of national resilience. Experts suggest that strengthening cybersecurity measures beyond Riga, particularly in border regions, is crucial for protecting Latvia’s overall security.
LMT Webinar: Empowering Small Businesses
To address these challenges, the LMT group is hosting a practical webinar titled “Small company – big goal. The first steps to protect your business” on March 24th. The webinar will feature insights from Gints Mālkalnietis, cybersecurity expert at Cert.lv, Krists Mediņš, digital systems management specialist at EDIC, and Guntars Alliks, head of LMT’s cybersecurity service. LMT invites companies to participate.
Survey Methodology and LMT Financials
The data presented is based on a survey of 10,000 companies across Latvia conducted by EDIC. LMT group reported a preliminary turnover of €335.1 million in 2024, an 8.2% increase from the previous year. In 2023, the LMT concern had a turnover of €308.608 million, with a 6.1% increase in profit, reaching €34.038 million.
Ownership and Potential Changes at LMT
Currently, Telia Company and its subsidiary Sonera Holding own 49% of LMT, while SIA “Tet” and VAS “Latvijas Valsts radio und televsionis centrs” (LVRTC) each hold 23% of the shares, and SIA “Public asset manager “Possessor”” (“Possessor”) owns 5%. However, Telia has signed a memorandum of understanding with Latvia, AS Latvenergo, and LVRTC for the sale of its shares in both Tet, and LMT. The proposed transaction envisions a more distributed ownership structure, with Latvenergo, LVRTC, Possessor, and a strategic investor each potentially owning approximately 25% of the capital shares of both companies.
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